$20 Million in Cost Savings and Avoidance

One of Alpine's differantors is the partnership we build with each of our clients.

Alpine's 4PL (Fourth Party Logistics) approach means we dive a little deeper into the all aspects of the supply chain from forecasting, receipt of product, storage and tracking of material, field returns, inventory reconciliations, payment and internal cost allocation.

In 2017 we worked alongside internal stakeholders of a new client to identify opportunities for improvement. We re-organized and re-defined the roles and responsibilities within the Materials Management team that Alpine was now a part of. We helped create an alignment between business units such as Drilling, Completions, Production, Wells Planning and Finance. A foundation of trust was built that resulted in the timely communication and inter-team involvement of projects, new yard set-ups, materials and services planning and resourcing. Alpine also collaborated with the key, high-spend vendors and initiated documentation control and invoicing standards. Alpine initiated the clean-up of $14MM in invoice back-log and has resulted in an ongoing invoice accuracy of 97%. Alpine created and implemented multiple Key Performance Indicators (KPI's) for this client’s key vendors, which promotes accountability, transparency and performance enhancement. Developed monthly reporting for internal stakeholders, to achieve financial and asset visibility. This assists with financial accruals, AFE closeouts, cost allocation & reallocation, and OPEX and CAPEX inventory asset value visibility.

Since implementing these processes, the client’s Materials Management team continues to effectively manage and maintain 69 stock locations with 98% inventory accuracy. The team has processed 18,640 ERP transactions totaling $665K. Alpine also identified $20 Million in cost savings and cost avoidance through new process implementation, inventory re-utilization, load consolidation, quote and PO error identification and inventory inaccuracy detection.