An operator reduced project material acquisition costs by 15-30% and expedited the project timeline for additional savings. Here’s how it happened.
Background
A major oil and gas operator needed line pipe and valves to build a 68-mile pipeline. To ensure the successful completion of the project, the operator needed to acquire not only the necessary material, but also the required documentation for technical review and approval.
Challenges Overcome
The project required a short lead time for new material, but estimated manufacturing lead times for line pipe orders were close to 4-6 months while valves were 50+ weeks. In addition, the operator needed to conduct multiple thorough reviews of the material test reports (MTR) and other documentation prior to purchase for quality assurance and compliance. Supply chain inefficiencies and project timeline delays threatened negative impacts on construction costs and potential commercial repercussions for the operator.
Benefits Realized
- No cost premium for faster delivery
- Met quality requirements
- Competitive pricing
- Access to immediately available inventory
- More sustainable sourcing solution
15-30% Cost Savings
The client was able to satisfy project requirements, save time, and reduce project costs by leveraging ARS Global’s resources, adaptability, knowledge, and experience.
