CLIENT
Largest private oil & gas fracking services company based out Texas
KEY CHALLENGES
This client has supply chain & asset intensive operations with multiple suppliers for sand, fracking chemicals, fleet maintenance items and several fracking locations across US. Client was losing multi-million dollars in profits due to frequent overstock and under-stock situations, wastage of sands and chemicals due to erroneous procurement estimations, uncontrollable logistics, warehousing & transportation costs and penalties in demurrage & detention due to lack of proper planning system, old legacy IT applications running in silos, disconnected operations and lack of transparency across several business areas.
Client sought Touchstone’s help for an effective solution.
OUR SOLUTION
- Touchstone’s team of supply chain experts identified $12M of highly underutilized E&P assets
- Client saved over $7M in overall annual cost by strategically relocating some of their storage locations, redefining and automating bulk sand procurement and in-transit sand diversion & re-routing processes through the implementation of Touchstone advised Shipper and Loadmaster applications
- Our team helped the client reduce wastage of fracking chemicals in manufacturing process by over 90% through implementing Touchstone suggested APS system
- Touchstone’s technology consulting team helped client saved over $1.7M a year through tremendous increase in fracking quotation accuracy. The solution required deploying activity based costing, automation of project quote generation system through implementation of SAP Project Systems module and its integration with other SAP modules, in-house developed quote & proposal generation system
- Our SCM consultants helped client saved over $3M per year through implementing a streamlined, well integrated MRP process for their that lead to a more robust equipment maintenance and asset management system for their hydraulic fracturing fleet and pump trucks
- Client saved over $2M in fuel cost through demand driven requirement planning system