Inventory Management

When drilling and producing oil and gas wells, it's vital to have the product you need available to get the job done. DistributionNOW Supply Chain Services creates strategic partnerships with producers to do just that. As a producer, there are a million different things that are going on every day. 

A Typical Inventory Management Model

There are three main reasons for keeping inventory:

  • Time – Time lags in your supply chain require you to maintain certain amounts of inventory to use in this lead time. But in practice, you should maintain inventory for consumption during variations in lead time. You can address this by ordering stock that many days in advance.
  • Demand Variances – Demand varies frequently, but the manufacturer's capacity is generally fixed. This can lead to stock accumulation. Consider how goods consumed during favorable weather conditions can lead to large amounts of stock based on future consumption estimates. Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods.
  • Economies of scale – The "one unit at a time, at a place where a user needs it, when he needs it" principle tends to incur logistical costs. So bulk buying, movement and storing brings in economies of scale, thus inventory.

The typical supply chain inventory management model has the manufacturer, supplier, and customer stock inventory to minimize the peaks and valleys of material needs and ensure the availability of products.


A Simplified Materials Management Model

DNOW Supply Chain Services offers a simplified materials management model. We eliminate your need to incur inventory carrying costs while ensuring materials are where and when they need to be. We accomplish this through a dedicated approach based on your demand planning and forecasting.

What You Can Expect When You Partner with DistributionNOW Supply Chain Services:
  • Reduced total cost of ownership (TCO)
  • Consistent and uninterrupted availability of materials and equipment
  • Standardized and improved quality
  • Stabilized and improved material costs
  • More productivity gains
  • Reduced logistics costs and improved safety
  • Enhanced production and decreased level of effort (LOE)

Specialized Inventory Management Solutions

From initial request through final item disposition, DNOW provides a comprehensive selection of effective inventory management solutions. Our specialists are committed to ensuring you have the right material where and when you need it.

  • Onsite Third Party Consigned Inventory - DNOW works with you in both production or maintenance mode, providing inventories closer to your point of need as well as remote stocking locations.
  • Dedicated Support Inventory - DNOW offers our own dedicated inventory based on your specific requirements. We invest the resources to help you reduce capital invested in inventory.
  • Client Owned Inventory - DNOW manages customer owned inventories as part of our onsite warehouse solution, We provide the tech, systems and people to take care of your assets.