Regardless of how much planning, scheduling and resources you allocate to a capital project, circumstance and forces beyond your control seem to wreak havoc on your timeline and bottom line. The Flexitallic projects team is changing at least one aspect of those challenges by developing and implementing best practices for the EPC procurement component. The Flexitallic projects team is a group of knowledgeable professionals that understands what matters and how to successfully implement flexible, customizable procurement solutions.
The problem? Time is money. Never is this more true than at a construction site. Here is the process: You get a call from the field, and the crew needs gaskets. You must send out gasket bids, wait for the quotes, issue a purchase order, wait for delivery, manage shortages, hope the supplier certifies to your specs, pay for the freight and pray the supplier delivers on scheduled time. Lastly, if the crew is not ready, you now have to take on inventory that minimizes cash flow! Traditionally, this has been the way of procuring materials at the site, and while this common approach works well (or does it?), we have helped numerous customers find better ways.
Over the past few years, we have witnessed procurement costs take their toll on EPC projects and ultimately the bottom line. We have practical and simple solutions that meet customers' needs and eliminate about 90 percent of all nonessential, old-fashioned purchasing processes that waste time and money.
Case in point: Last year we were approached by one of our most valued EPC clients that urgently needed a customized supply chain solution. One of their biggest challenges was limited warehouse and storage space to manage their gasket and bolt inventory. Other important concerns such as lowering or eliminating delivery fees and reducing turnaround time were also key objectives. The Flexitallic projects team proposed the idea of consigning inventory at a storage facility literally across the street from the construction site.
As part of that customized solution, our projects team constructed and installed warehouse shelving with barcode bin locations, allowing for precise inventory location and tracking. As that process was undertaken, gaskets and other materials were ordered based on the plant/project specifications and requirements. Once the warehouse was staged and ready, Flexitallic delivered materials that day and had the facility stocked and scanned into the bin locations within 48 hours. We even took the inventory process one step further and synchronized our inventory management system with the client's for complete transparency. Next, we trained and dedicated two Flexitallic employees at the project warehouse site to maintain and service the inventory for the duration of the project. Work days and hours mirrored the client's construction schedule, too. This inventory solution was essentially like having their own dedicated Flexitallic service facility at their fingertips. The customer simply issues a material requisition; we bag and tag the material, and it's literally ready for pick up within minutes.
The time and energy saved has allowed our client to focus on more critical items without having to worry about the small details of gaskets and bolts. With this innovative solution, our client has eliminated wait times, freight costs and shortages. This adds up to exponential cost savings on materials and labor. We are about halfway through the scheduled construction timeline and the client has not incurred one stock out, and the cost savings and time saved continue to add up. This type of value-added operation has allowed the customer to focus on the critical path ahead and gives them the assurance they will have the right materials when they need it -- and on budget. This is just one example of how the projects team is truly making a direct positive impact on our customers' bottom lines, allowing them to stay on schedule.
When you partner with Flexitallic, not only do we bring best-in-class products and engineering support, but you also have direct access to dedicated projects personnel, world-class training, and over 105 years of trust and exceptional quality. EPC projects -- well done.
For more information, visit www.flex itallicprojects.com, call (281) 604-2400 or email info@flexitallicprojects.com.
