Case Studies

Case Study For Energy Tubulars Inc.

A Sales and Distribution Company of Oil Country Tubular Goods

The Braly’s, owners of Energy Tubulars Inc., a Sales and Distribution Company of Oil Country Tubular Goods, had some unique challenges to overcome in 2011. To stay competitive, they needed to vertically integrate trans-loading and transportation operations into their current business model in order to control inventory, service and cost to their oilfield customers.

They formed the trans-load company Tubular Transport & Logistics and, lacking the in-house operational and facilities expertise to setup and operate, engaged SCM to provide turn-key solutions for three key markets over the next 2 years:

The Need

The first need was to turn around and operate a newly acquired, underperforming facility in Colorado.
The second was to locate, develop and operate a site in North Dakota to support market expansion into the Bakken.
The third was to co-develop and operate a facility to serve existing clients in Central California.

The Outcome

SCM set up all operations in 2 months from “GO” allowing ETI to get a jump on the projected sales from the new market entry. The following are some of the high points of the action plan developed and executed by SCM:

Located prime transload site in Bismarck, ND that had the correct rail infrastructure, supplier network and quality labor pool to support sustainable growth.
Co-Developed TTL business plan: rate structures, financial projections and operational budgets.
Executed swift negotiations with the City of Bismarck and local railroads to occupy site and prepare for in-bound traffic.
Spec’d and ordered all equipment and set up facility for product handling, storage and transportation.
Set-up local IT network infrastructure, SCM provided ERP and all site specific web reporting and client portal access.
Established relations and negotiated service contracts with trade suppliers and subcontractors
Hired and trained workers in SCM developed and established business SOP’s.
Manage all TTL daily operations on behalf of ETI: Facility Management, safety & compliance, back office/accounting, HR services as well as expansion project management and strategic planning and support.