Studies

LNG Terminal Extension, USA

context

An EPC customer was awarded a contract to further expand a LNG terminal in the South East of the US (approx. total value USD 200 million) to increase the site's storage volume by more than 50% and increase output. We were required to supply electrical bulks for the job.
 

KEY STAKES

In his prior project experience, the EPC's Project Procurement Manager on the jobsite found that the procurement schedule called for the bid inquiry on bulk electrical material, typically 60% of the relevant detailed material take-off would be complete. Full detail with accurate counts would wait until the particular job / area / module was queued for construction and, then, procurement would bid that bill of material. This process would be repeated as focus shifted from one job / area / module to the next.

As a result, project procurement would source the same type of bulk electrical items several times over.
 

IMPLEMENTED solution

Distributor Manned

On-site Vendor Material Management consisting of an on-site trailer deployed with our proprietary software solution

 

TANGIBLE BENEFITS ACHIEVED

Risk reduction

  • Only specified material is available in the trailer
    Vendor personnel on-site is dedicated and accountable to the project
  •  

cost savings

  • Higher markup at counter
  • Labor is not dedicated to off-site material runs (approx. USD 15,000 savings)
  • Stock material is freight allow; the Rexel executing banner manages costs for low quantity shipments
  • Carrying cost of inventory is managed by the Rexel executing banner, saving the EPC approx. USD 1,000 per month
     

performance improvement

  • Vendor personnel on-site are intimately familiar with project requirements and key people so problems can be solved with the entire project team rather than relying solely on procurement
  • Experienced backroom support within the Rexel executing banner

Geography:
North America