More Success Stories

SSI Prevents Downtime During Gas Supply Outage

Fast, proactive response keeps chipmaker production lines running during widespread gas supply outage

In early 2011, a major microprocessor manufacturer was affected by a widespread natural gas outage brought on by a record-breaking cold spell. The outages contributed to a declared State of Emergency.

Fuel supply critical, site faces shutdown

Natural gas fueled the HVAC system and without heat, the boiler systems would have failed causing a plant shut-down. As soon as the heat went out, SSI’s client engaged backup diesel generators to support the site’s heating needs. However, with limited diesel on-hand, the site would be forced to shut down unless adequate fuel supplies could be acquired to maintain the boilers. The generators require 6,000 gallons of fuel per day to heat the plant.

SSI’s immediate response and determined follow-up saves the day

The Storeroom Solutions team responded quickly. SSI’s on-site buyer was notified of the emergency early in the morning. Leveraging SSI’s network of industrial supply, the buyer immediately contacted local fuel suppliers, placing a fuel order of four tanker truckloads of fuel before noon the same day. The cost of the emergency fuel order was in excess of $80,000 and required multiple client approvals.

Knowing that orders over $20,000 for this client typically take several days to complete the approval process, SSI’s buyer skillfully initiated the contingency emergency order process designed for crises like these. SSI’s buyer was in touch with all parties via e-mail and phone, expediting written approvals from key budget holders, thus preventing costly delays. He also kept in touch with end users in the plant throughout the day to monitor the fuel situation and to keep them informed of fast-changing events.

Two days later, SSI’s strong and consistent coordination paid big dividends. Several emergency fuel pumps failed, requiring fuel deliveries to be re-routed to other areas at the plant; delays of fuel deliveries could have further compounded the heating problems.

Heads-up coordination by MRO buyer keeps line running

The following day, natural gas supplies were restored to the area and the plant was able to again draw from the natural gas grid, bringing the crisis to an end. While it was a harrowing few days, SSI’s client remained in production throughout the emergency. SSI’s integrated supply expertise saved this client an estimated half million dollars by avoiding a costly shutdown.

SSI Saves $1m In Chem Inventory

SSI recently saved an industrial chemical supply client nearly $1 million by right-sizing its indirect materials storeroom inventory. SSI’s Storeroom On Site^® technology helped drive the savings by developing a detailed comprehensive analysis report that looks at the purchasing and issuance history of all stock items. The report also analyzes lead time required for each part in order to avoid premature ordering.

Dramatic 50% Inventory Drop

SSI was able to dramatically reduce on-site inventory by approximately 50% for the chemical client. Storeroom Solutions’ Operations Director Vicki Byrd says, “We not only looked at our client’s existing MRO inventory, but we also barcoded and labeled a warehouse that now has 2,000 SKU’s, digitally marking every part. The site was previously managed by a different 3rd party MRO supplier and the client brought us in to be a change agent.”

Vendor Managed Inventory Saves 30%

SSI also implemented a point of use vendor managed inventory operation on site for fasteners and PVF in the maintenance shop. Not only does the program save the chemical client more than 30% in material cost – but it also increases productivity of the maintenance staff by having the materials close by their working space. The entire process is managed by SSI personnel on site.

Green Initiative Helps Fortune 50 Firm

SSI’s energy efficient “open book” lighting procurement initiatives recently saved one of the nation’s largest computer technology firms close to $500,000 – nearly 20% of its previous spend. The combination of energy-efficient lighting and SSI’s open market procurement of indirect materials resulted in the dramatic savings.

$2 M Additional Savings in 12 Months

SSI’s policy of continuous process and cost improvements at the tech firm’s multiple manufacturing locations also resulted in more than $2 Million in parts spend savings over the past year. Tightened budgetary controls and improved forecasting contributed to the tech client’s savings.