CASE STUDY

Oil and Gas Market

Background:

A large energy provider is engaged in natural gas compression operations. The company provides the fabrication of natural gas compression units in addition to processing equipment in the United States & internationally. Headquartered in Houston, TX they have manufacturing facilities throughout North America.

Challenges:

  • Limited visibility to logistics network

  • Reactive rate negotiation

  • No readily available data for route management or volume leverage

  • Minimal standardized business processes

  • Lack of measurable Key Performance Indicators

  • Inadequate cost control related to exception management

  • Insufficient invoice auditing process

Argus Solution:

Through the introduction of a tailored Transportation Management System & turnkey Freight bill, Audit & Pay system, Argus worked with this company to significantly increase visibility to the global transportation network. Increased visibilities of freight movement allowed them to baseline transportation costs & capitalize on leverage volume pricing. The team continues to employ robust real time & accurate data to optimize their logistics network.

 

In addition to improved management over their transportation burden, the TMS introduced standard operating procedures across the global supply chain. Key Performance Indicators measure real time compliance & allow this energy supplier to exercise best practices.

Success:

  • Exceeded $2MM net cost savings

  • Generation of real time & accurate database

  • Transportation Management System implemented across supply chain

  • SOPs ensure best practice within the business

  • Proactive rate negotiations & savings initiatives

  • Developed measurable KPIs

  • Enhanced invoice audit process

  • Streamline processing and payment of freight bills

  • 18 month post rate & service audit