Request Free Demo
Digital Transformation for a Steel Tubular Services Company

Overview

Steel Tubular company, providing insured services ensures confidence in every tubular order. They are committed to excellence and professionalism and go the extra mile for clients, crafting tailored solutions that meet their unique tubular needs.

  • • Provides casing, threading, and coupling services for oil & gas companies.
  • • Operates service centers in multiple states across the U.S.
  • • Offers custom engineering solutions for well integrity and tubing string design.
  • • Rents warehouse space for storing service materials and equipment.
  • • Faces complex freight and logistics challenges for transporting materials between service centers and client locations.

Business Challenges:

Multi-State Operations Complexity

  • Managing service operations across different states with varying tax and financial regulations.
  • Tracking profitability at each service center.

Freight & Logistics Complexity

  • Difficulties in tracking freight costs for transporting pipes, casing, and threading equipment.
  • Unclear cost allocation for inbound and outbound shipments across multiple locations.
  • Manual tracking of shipping timelines and vendor contracts, leading to delays and cost overruns.

Warehouse & Space Rental Challenges

  • Renting warehouse space in different states without centralized visibility on utilization.
  • Difficulty in allocating warehouse costs to projects or service jobs.
  • Inefficient tracking of inventory storage and movement between rented warehouses.

Engineering & Service Execution Challenges

  • Torque and drag analysis for well integrity.
  • Ensuring cost-efficient casing and tubing string design solutions.
  • Tracking and managing customer-specific engineering requirements.

Financial Reporting & Profitability Issues

  • Lack of automated P&L tracking per service center.
  • No clear EBITDA calculation to assess financial health accurately.
  • Cash flow management issues due to unpredictable rental and freight expenses.

Proposed Solution

To address these challenges, an SAP Business One (SAP B1) integration was implemented to streamline financial, operational, and logistics processes.

SAP Business One Implementation

Inventory Management:

  • Implemented auto Item code Generation based on selection of attributes.
  • Implemented Bin location to track exact position of material.
  • Auto Goods Issue and Goods Receipt to reduce effort in stock conversion process.

Freight & Logistics Management

  • Implemented automated freight tracking for inbound and outbound shipments.
  • Integrated freight cost allocation into customer invoices.

Warehouse & Rental Space Optimization

  • Created a centralized warehouse rental tracking system.
  • Automated warehouse cost allocation based on usage per project or service center.
  • Improved inventory management by tracking stock movement between warehouses and service centers.

Financial Reporting & Cost Control

  • Automated P&L reports per service center to track profitability.
  • Developed real-time cash flow tracking for better liquidity planning.

Service Execution & Engineering Optimization

  • Automated job scheduling for casing, threading, and coupling services.
  • Implemented a custom engineering module for tracking customer-specific tubing design requirements.
  • Optimized project cost estimation using real-time data from SAP B1.

B2B Customer Portal Integration:

To enhance customer experience and streamline order management, a B2B Customer Portal was integrated with SAP B1.

  • Customized Engineering Requests: Clients can submit well integrity and tubing string design specifications. Engineers can collaborate with customers directly via the portal.
  • Quotation Requests: Customer can request quotation for their tailored requirement directly from portal.
  • Order Placement & Tracking: Customers can place service requests online through the portal. Real-time order status updates for casing, threading, and coupling services.
  • Invoice & Payment Management: Customers can view invoices, make payments, and check account statements. Integration with SAP B1 finance module for automated invoicing and reconciliation.
  • Customer Onboarding: User friendly customer onboarding process helps to track the leads and customers details and seamlessly integrated with SAP.

Key Benefits & Business Impact

Financial & Cost Management Impact

Improved Freight Cost Tracking

Reduced shipping delays by 30% through automated tracking.

More accurate freight cost allocation, reducing unbilled expenses.

Optimized Warehouse & Rental Cost Management

Reduced warehouse rental costs by 20% by optimizing space utilization.

Better inventory visibility, leading to reduced material waste and losses.

Automated Financial Reporting

Real-time P&L tracking per service center improved decision-making.

EBITDA calculations standardized, providing a clear view of profitability.

Cash flow visibility improved, enabling better working capital management.

Operational & Logistics Impact

Optimized Job Scheduling & Execution

Faster service execution for casing, threading, and coupling jobs.

Reduced engineering turnaround time by 25% through automation.

Improved Logistics & Freight Efficiency

More accurate freight tracking, reducing unexpected costs.

Improved vendor negotiation using real-time logistics data.

Enhanced Engineering & Customer Service

Faster torque and drag analysis, improving well integrity planning.

Improved customized tubing design tracking, reducing errors.

B2B Customer Portal Impact

Enhanced Customer Experience

Customers can place orders, track shipments, and access invoices 24/7.

Fewer manual inquiries for order status and delivery.

Improved Engineering Collaboration

Clients can submit detailed service requests online.

Engineers can tailor solutions faster based on customer specifications.

Conclusion

By implementing SAP Business One and a B2B Customer Portal, the company streamlined freight tracking, optimized warehouse rental costs, automated financial reporting, and improved customer service efficiency. The B2B Portal transformed customer interactions, reducing manual work and providing real-time order tracking, shipment updates, and invoice visibility. These improvements resulted in better cost control, financial visibility, and operational efficiency, helping the company scale while maintaining profitability.

Close

Download Casestudies

Complete the following to download this Casestudies.

This form collects your contact details and takes your permission to use any of the data provided hereunder in accordance with our Privacy Policy.

Verification Code