MiVending Helps Oil & Gas Customer Get Consumable Spending Under Control
A customer who provides service to both on and off shore oil and gas rigs approached Motion Industries regarding issues involving the control of their consumable spending.
Our customer already had a vending program in place but was dissatisfied with the lack of service and support they were receiving. In addition, the machine applications were not tailored to meet the needs of the environment. To top it all off, items were consumed at a rapid rate and the customer repeatedly placed emergency purchase orders to cover stock outs of PPE, industrial supplies, pneumatic and power transmission products. In addition to increasing inventory costs, many of these emergencies reduced production time until supplies were replenished.
Management expressed a concern regarding the lack of visibility to inventory levels, minimum or maximum levels or reorder points. They knew there was waste, but without a solid tracking system or reporting program in place, it was difficult to identify. Spending was not in control.
So, the customer reached out to MiVending for a solution. Our branch representation visited the site and gathered information. After assessing the site needs, the MiVending team employed a solution that corrected the vending devices based on the customer data requirements.
One solution was to set up an automated reorder process that, consequently, eliminated stock outs. We programmed the machines to report supply levels and alert the local Motion Industries branch when items were low. These alerts help prevent potential stock outs in advance. Once the local Motion Industries branch receives the replenishment request, the MiVending service technician fills the order, delivers the items and restocks the machine.
Although product is easily accessible, usage is strictly controlled and tracked 24-7. All items issued are now tied directly to employees and cost centers – giving the customer total control of spending. And because the system is web-based, managers can view their employees detailed usage activity as well as access real time inventory reports.
Today, the Motion branch is working with the customer location to drive standardization to best leverage spending.