distribution now.pdf
TRANSCRIPT
-
5/24/2018 distribution NOW.pdf
1/25
Company Description
-
5/24/2018 distribution NOW.pdf
2/25
2014 COPYRIGHT DISTRIBUTIONNOW
Introduction to DistributionNOW
2
Countries 20+
Locations 330+
Employees 5,300+ERP System SAPTM
DistributionNOW will be recognized asthe market Leader in Supply ChainManagement through superior customer
service by leveraging the strengths of ouremployees, processes, suppliers andinformation
DistributionNOW VISION
-
5/24/2018 distribution NOW.pdf
3/25
2014 COPYRIGHT DISTRIBUTIONNOW
Value Proposition
3
A Critical Link Through LeadingSupply Chain Technology
Product Offering Market Segments
Knowledgeable people Customer
Product
Application
Materials management
Proven processes Quality management
Supply chain expertise
Extensive infrastructure United States
Canada
International
Procurement advantage Broad supplier base
Single source provider
Global sourcing
-
5/24/2018 distribution NOW.pdf
4/25
2014 COPYRIGHT DISTRIBUTIONNOW
Overview of Key Product Categories
4
Pipe & Tube Leader in breadth and depth of product in many grades Carbon, alloy, stainless pipe, instrumentation tubing, fiberglass and poly
Valves
Valves covering both upstream and downstream sectors
Ball, multi-turn, specialty check, butterfly, gate and plug
Valve actuation
Fittings &Flanges
Carbon and alloy steel in butt-weld & forged, bolts & gaskets, instrumentation fittings
and other fittings Leading position in high yield fittings and flange products for the gas pipeline industry
Mill, Tool and
Safety
Extensive inventory of mill, tool, safety and janitorial products
Comprehensive product line includes hand, power, precision and cutting tools andsafety products and services
Drilling &
Production
Products
Major product offerings include OEM parts, rotary and vibrator hoses, fluid endexpendables, triplex pump modules, drill lines, choke and kill hoses
Artificial Lift
Product offering includes conventional rod pumps, progressive cavity (PC) pumps,variable frequency drive systems (VFD) and surface equipment
-
5/24/2018 distribution NOW.pdf
5/25
2014 COPYRIGHT DISTRIBUTIONNOW
Blue-Chip Customers and Suppliers
5
Suppliers Customers
/
Drilling Contractors
Exploration & Production
Midstream
Downstream & Industrial
http://www.kitz.com/http://www.kitz.com/ -
5/24/2018 distribution NOW.pdf
6/25
2014 COPYRIGHT DISTRIBUTIONNOW
Flexible Operational Model
6
Branch network model
supported by DCs to
ensure inventory is
maintained locally.
Right inventory in right
place at the right time
BRANCHES
Broad sourcing
capability to
consolidate customer
requirements on
multiple lower value or
non-core items
EXPORT SUPPLY CHAIN
SERVICES
Vast offering of supply
chain services to
increase efficiency and
lower cost within the
supply chain
CAPITAL PROJECTS &
VALVE ACTUATION
Global sourcing and
expediting capability to
ensure correct product
is delivered to the job
site in accordance with
project requirements
Shipment direct to
customer facility from a
regional distribution
warehouse
REGIONAL DC
-
5/24/2018 distribution NOW.pdf
7/25 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply
7
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
ProcessesMaterial
SourcingLogistics
Information
Systems
Materials
Management
Service &
Accountability
Material sourcing
Global sourcing
Quality system
Globally AML
Export services
Procurement services
On-site at customer location
-
5/24/2018 distribution NOW.pdf
8/25 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (contd)
8
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
ProcessesMaterial
SourcingLogistics
Information
Systems
Materials
Management
Service &
Accountability
Global inventory investment
Local availability
Inventory management
Warehouse management Customer-owned managed inventory
Forecasting, planning and reporting
Technology enablement
-
5/24/2018 distribution NOW.pdf
9/25 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (contd)
9
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
ProcessesMaterial
SourcingLogistics
Information
Systems
Materials
Management
Service &
Accountability
Service
Company-owned fleet to service last mile
3rd party freight agreements
24/7 delivery service
Cost savings
Freight consolidation
Global logistics management
Order consolidation
-
5/24/2018 distribution NOW.pdf
10/25 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (contd)
10
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
ProcessesMaterial
SourcingLogistics
Information
Systems
Materials
Management
Service &
Accountability
Order fulfillment
Inventory visibility and replenishment
Planning and scheduling
Content management
Real-time reporting and analytics
eCommerce capabilities
-
5/24/2018 distribution NOW.pdf
11/25 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (contd)
11
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
ProcessesMaterial
SourcingLogistics
Information
Systems
Materials
Management
Service &
Accountability
Partnership
Joint meetings
Goal alignment
KPI measurement
Risk mitigation
Pride and ownership of servicing our customers
Commitment to service and theIndustry since 1862
-
5/24/2018 distribution NOW.pdf
12/25 2014 COPYRIGHT DISTRIBUTIONNOW
Global Footprint
United States Houston, TX Los Angeles, CA (Regional) South Plainfield, NJ (Regional)
Canada Edmonton, Alberta Estevan, Saskatchewan
Asia Jurong, Singapore
MENA Jebel Ali, U.A.E.
Europe Aberdeen, Scotland
12
Distribution
Centers:
United States
-
5/24/2018 distribution NOW.pdf
13/25 2014 COPYRIGHT DISTRIBUTIONNOW
U.S. Footprint
13
Distribution Center
Applied Products
DNOW Branch
-
5/24/2018 distribution NOW.pdf
14/25 2014 COPYRIGHT DISTRIBUTIONNOW
Canada Footprint
14
DNOW Head Office
Automation Centers
DNOW Branch
-
5/24/2018 distribution NOW.pdf
15/25 2014 COPYRIGHT DISTRIBUTIONNOW
Global Footprint
15
**Sales Office
Asia Pacific
Jurong, Singapore
Balikpapan, Indonesia
Gresik, Indonesia
Jakarta, Indonesia
Mumbai, India
Shanghai, China
Brisbane, Australia
Perth, Australia
Roma, Australia
Europe
Cambridge, England
**London, England
Great Yarmouth, England
Beverwijk, Netherlands
**Pruszkow, Poland
Kristiansand, Norway
Stavanger, Norway
Aberdeen, Scotland
Latin America
Macae, Brazil
**Rio de Janeiro, Brazil
Bogota, Colombia
Ciudad Del Carmen, Mexico
Poza Rica, Mexico
Villahermosa, Mexico
**Lima, Peru
MENA and Africa
Al Khobar, Saudi Arabia
Jebel Ali, U.A.E.
Abu Dhabi, U.A.E.
**Muscat, Oman
Cairo, Egypt
**Cape Town, South Africa
Russia and CIS
Nizhnevartovsk, Russia
Sakhalin, Russia
**Aktau, Kazakhstan
Atyrau, Kazakhstan
**Baku, Azerbaijan
-
5/24/2018 distribution NOW.pdf
16/25 2014 COPYRIGHT DISTRIBUTIONNOW
Distribution Centers
16
USA
Houston, TX
Los Angeles, CA (Regional)
South Plainfield, NJ (Regional)
CANADA Edmonton, Alberta
Estevan, Saskatchewan
ASIA
Jurong, Singapore
MENA Jebel Ali, U.A.E.
EUROPE
Aberdeen, Scotland
-
5/24/2018 distribution NOW.pdf
17/25 2014 COPYRIGHT DISTRIBUTIONNOW
La Porte, TX Distribution Center
17
450,000 Sq. Ft. Facility (10.3 acres)
126 Total Associates
70,000 Sq. Ft. Outdoor Storage (1.6 acres)
$20 Million Avg. per month of revenue support
5.5 Inventory Turn Ratio
High Use of Automation & Technology for Efficiency
DNOWs Largest Branch within the Same Facility
Reduced Inventory due to Shared Facility
Close Proximity to Customer
$8.1 Million Avg. Revenue per Month
7.5 Inventory Turn Ratio
-
5/24/2018 distribution NOW.pdf
18/25 2014 COPYRIGHT DISTRIBUTIONNOW
La Porte DC Value Proposition
18
Product inspection and testing to Quality Standards
Customer curb appeal 99.9% inventory accuracy of last cycle count Warehouse Operations: Aberdeen Group Study. July 2009.
6.2 million pieces processed per month Stock replenishment model / Emergency order response 46% of non-tubular sales and 41% of tubular sales supplied
by DCs
25,000+ items in inventory $64 million in inventory value Approximately 5 turns excluding tubular and 4 turns
including tubular
Warehouse Management System Voice & Wireless bar code scanners for floor level
communication Near paperless environment
Pro-active quality approach - ISO 2859 Supplier Audits Quality Checkpoints
Best-in-Class Facility
Primary Supplier in the
DNOW Supply Chain
Breadth of Product
Information Technology Platform
Quality Program
-
5/24/2018 distribution NOW.pdf
19/25 2014 COPYRIGHT DISTRIBUTIONNOW
Barbers Hill DC // Full Service Tubular Yard
19
100 acres available, stabilized yard, yardmanagement system, full service capabilities
One of the largest USA pipe distributors
Inventory
45,000 tons
$56 million
60% Domestic / 40% Import
~3 turns/year
$150 million throughput
Activity
45-55 outbound trucks per day
$15 million processed per month
Use of software and daily cycle counts ensures
orders are accurate and on time
-
5/24/2018 distribution NOW.pdf
20/25
2014 COPYRIGHT DISTRIBUTIONNOW
Technology and eBusiness Solutions
20
Business to Business Integration
SAP to customer ERP
Business process andanalysis
Integrated supply
Bar coding
eCommerce
Procurement services
Inventory transparency
Punch out / roundtrip
EDI / XML
Online catalog
300,000+ SKUs
Custom masks
Product details
Item comparison
Search
Order online
Electronic payment
Credit card
Purchase order
-
5/24/2018 distribution NOW.pdf
21/25
2014 COPYRIGHT DISTRIBUTIONNOW
Reporting
21
Key Performance IndicatorsDistributionNOW has enabled its system with the ability to capture CustomerAdditional Data (CAD) for every line item on every Sales Order. That information istailored to every customer and enables tracking and allocation of each line item to aspecific customer location, rig, platform, work order, cost center, project, equipmentnumber, AFE, G/L account, etc.
DistributionNOW has the capability of reporting KPIs (and not limited to)
Spend by Order Type (Stock or Buyout)
Spend by Product Category
Spend by DNOW Branch
Spend by Customer Location
On-time Delivery
Order Accuracy
Line Item Detail
8%9%
11%
13%
16%
23%
20%
-
5/24/2018 distribution NOW.pdf
22/25
2014 COPYRIGHT DISTRIBUTIONNOW
B2B Process Automation
22
NOW Branch Location
Material Replenishment
Customer
Field / Operations
Information Sharing Delivery of Material
Interface with customers system
Business process and analysis
Integrated supply
Bar coding
EDI / XML
Procurement services
Order process
Technical support
Inventory transparency
Procure to pay
Catalog pricing
KPI quarterly reports
Documentation flow process
Customer Back Office Support
Procurement (Electronic RFQ / PO Processes)
Accounts Payable (Electronic Invoicing)
-
5/24/2018 distribution NOW.pdf
23/25
2014 COPYRIGHT DISTRIBUTIONNOW
Project Management Model
Value based offering to our customers forcapital projects
Dedicated global project centers (6)
Scope of work
Material take offs and identification
Material sourcing and procurement
Quality assurance
Scheduling and expediting
Document control
Job site coordination and field services
23
-
5/24/2018 distribution NOW.pdf
24/25
2014 COPYRIGHT DISTRIBUTIONNOW24
Global Project Centers
Edmonton
Houston
U.K.
Dubai
Singapore
Brisbane
-
5/24/2018 distribution NOW.pdf
25/25
2014 COPYRIGHT DISTRIBUTIONNOW25
On-Site Operation Support Services
Operational Support Turnaround support
On-site safety service centers
Branch service centers
Mobile service facilities