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Lean Warehousing and Distribution Drives Improved Efficiency and Cost Savings for a Leading Offshore Drilling Contractor

Lean Warehousing and Distribution Drives Improved Efficiency and Cost Savings for a Leading Offshore Drilling Contractor

Industry

Oil and Gas

Challenge

A major offshore drilling contractor was looking to drive efficiencies in their shipping and receiving process in Gulf of Mexico and reduce the workload for their storekeepers offshore. They sought ALLSERV's help to outsource their shipping and receiving operations. ALLSERV's extensive functional experience and technical expertise put them in a unique position to ensure success.

Services

Distribution Management

$11.6m
in direct cost savings
$3.9m
items handled
47%
reduction in shipment footprint

The Solution

ALLSERV got to work by developing a custom distribution model for the customer which involved redesigning their shipping, receiving, labeling and quality control processes. This was done by incorporating ALLSERV's own Warehouse Management System (WMS), SAM (Storage and Movement), and deploying a custom barcoding solution. ALLSERV also used SMART packing solution to consolidate packing and reduce the shipment footprint. This redesigned process helped identify, capture and resolve OS&Ds earlier in the shipping process.

SAM, our custom-built WMS application simplifies quality control, receiving, labeling and manifesting processes This can be used on handheld devices or on a desktop and has a direct integration with the client's ERP system.

The Results

These ongoing optimization efforts have resulted in significant cost savings and improved efficiency for the customer.

The customized barcoding solution has improved inventory counting efficiency by 26%, while shipment consolidation and new packaging processes have led to a 21% reduction in freight costs. Space utilization and standardized packing procedures have also reduced container usage by 47%.

Ready to unlock millions in savings?