You’ve heard it before: “One size does not fit all.” Conventional wisdom holds true to this in just about everything — especially business. But when it comes to implementing a supply chain management (SCM) program, companies often fall victim to the “one size fits all” or “all or nothing” approach. In a 30-year career, which included SCM leadership roles with both public and privately-held E&P companies, I discovered something quite predictable about the oil and gas industry. With few exceptions, companies routinely subscribe to one of two very distinct philosophies:
1. Supply Chain Management is a Collateral Duty and/or Secondary Function – “Engineers, project managers and/or field personnel can execute the SCM function effectively, regardless of workload, level of experience or market knowledge.”
2. Supply Chain Management Requires Large, Unwieldy Departments – “An effective SCM program requires a substantial financial and human capital investment that includes specialists, analysts, strategists and expensive, powerful ERP/MRP and analytical software.”
Simply put, companies tend to establish either insufficient or excessive SCM programs. When one model doesn’t fit, the answer lies with the other. Or so the theory goes. And while most firms recognize the value of having a SCM program, far too many fail to treat it as the key business process it is, and consequently, lose hundreds of thousands of dollars each year to one-sided customer-vendor relationships, reactionary or fulfillment purchasing practices and mismanaged inventory; or, they overspend on overstaffed, inefficient and bureaucratic PSCM departments.
With this in mind, I formed Oakleaf Materials Management to assist small to midsize private equity E&P and midstream companies establish a more efficient, strategic approach to SCM using a common sense approach to establish a program that fits the organization and its operational needs. Using this approach, I have successfully guided companies in the development and implementation of initiatives to streamline inventory management, identify strategic sources, accurately forecast demand, and enhance the application of internal materials. In short, I help firms create efficiency and cut costs. It really is that simple, and I’d be happy to do the same for you.
– Mark J. Johnson, Principal Consultant
Here at Oakleaf Materials Management we understand the increasing intricacy of supplying material for capital projects while maintaining a favorable Capital Efficiency Ratio, which examines the amount of value your firm creates for shareholders relative to dollars invested. Always mindful of this, we work diligently to help identify and free-up more of your capital so you can utilize it on revenue-producing projects.
Using a very basic, lean approach, we help our customers achieve increased operational efficiency and lower material costs. Our customers also benefit from:
- Market Intelligence and Strategic Sourcing
- Productive and Collaborative Customer-Supplier Relationships
- Proper Inventory Levels / Lower TCO
- Identification of and Ready Access to Critical Contingency Items Thereby Minimizing Operational Downtime
- COPAS-friendly Inventory Management
- OCTG and Line Pipe Call-outs and Inventory Management
- Reconciliations (Material Transfers)
- Elimination/Reduction of Costly Ad Valorem Taxes
When partnering with Oakleaf Materials Management, your organization benefits from a quarter century of supply chain management expertise coupled with a global network of suppliers and services ready to meet your operational needs.
Our approach is simple: Take care of the customer. Operate safely and efficiently. Never compromise integrity.
Customer satisfaction is of paramount importance to us. If we can help you establish and/or maintain your materials management program, call us today.