distribution now.pdf

5/24/2018 distribution NOW.pdf

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Company Description


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2014 COPYRIGHT DISTRIBUTIONNOW

Introduction to DistributionNOW

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Countries 20+

Locations 330+

Employees 5,300+ERP System SAPTM

DistributionNOW will be recognized asthe market Leader in Supply ChainManagement through superior customer

service by leveraging the strengths of ouremployees, processes, suppliers andinformation

DistributionNOW VISION


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Value Proposition

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A Critical Link Through LeadingSupply Chain Technology

Product Offering Market Segments

Knowledgeable people Customer

Product

Application

Materials management

Proven processes Quality management

Supply chain expertise

Extensive infrastructure United States

Canada

International

Procurement advantage Broad supplier base

Single source provider

Global sourcing


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Overview of Key Product Categories

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Pipe & Tube Leader in breadth and depth of product in many grades Carbon, alloy, stainless pipe, instrumentation tubing, fiberglass and poly

Valves

Valves covering both upstream and downstream sectors

Ball, multi-turn, specialty check, butterfly, gate and plug

Valve actuation

Fittings &Flanges

Carbon and alloy steel in butt-weld & forged, bolts & gaskets, instrumentation fittings

and other fittings Leading position in high yield fittings and flange products for the gas pipeline industry

Mill, Tool and

Safety

Extensive inventory of mill, tool, safety and janitorial products

Comprehensive product line includes hand, power, precision and cutting tools andsafety products and services

Drilling &

Production

Products

Major product offerings include OEM parts, rotary and vibrator hoses, fluid endexpendables, triplex pump modules, drill lines, choke and kill hoses

Artificial Lift

Product offering includes conventional rod pumps, progressive cavity (PC) pumps,variable frequency drive systems (VFD) and surface equipment


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Blue-Chip Customers and Suppliers

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Suppliers Customers

/

Drilling Contractors

Exploration & Production

Midstream

Downstream & Industrial
http://www.kitz.com/http://www.kitz.com/


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Flexible Operational Model

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Branch network model

supported by DCs to

ensure inventory is

maintained locally.

Right inventory in right

place at the right time

BRANCHES

Broad sourcing

capability to

consolidate customer

requirements on

multiple lower value or

non-core items

EXPORT SUPPLY CHAIN

SERVICES

Vast offering of supply

chain services to

increase efficiency and

lower cost within the

supply chain

CAPITAL PROJECTS &

VALVE ACTUATION

Global sourcing and

expediting capability to

ensure correct product

is delivered to the job

site in accordance with

project requirements

Shipment direct to

customer facility from a

regional distribution

warehouse

REGIONAL DC


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Operational Scope and Supply

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Procurement LogisticsInventory&

Warehouse

Managemen

t

Business

ProcessesMaterial

SourcingLogistics

Information

Systems

Materials

Management

Service &

Accountability

Material sourcing

Global sourcing

Quality system

Globally AML

Export services

Procurement services

On-site at customer location



Operational Scope and Supply (contd)

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Warehouse

Managemen

t

Business

ProcessesMaterial

SourcingLogistics

Information

Systems

Materials

Management

Service &

Accountability

Global inventory investment

Local availability

Inventory management

Warehouse management Customer-owned managed inventory

Forecasting, planning and reporting

Technology enablement




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Warehouse

Managemen

t

Business

ProcessesMaterial

SourcingLogistics

Information

Systems

Materials

Management

Service &

Accountability

Service

Company-owned fleet to service last mile

3rd party freight agreements

24/7 delivery service

Cost savings

Freight consolidation

Global logistics management

Order consolidation




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Warehouse

Managemen

t

Business

ProcessesMaterial

SourcingLogistics

Information

Systems

Materials

Management

Service &

Accountability

Order fulfillment

Inventory visibility and replenishment

Planning and scheduling

Content management

Real-time reporting and analytics

eCommerce capabilities




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Warehouse

Managemen

t

Business

ProcessesMaterial

SourcingLogistics

Information

Systems

Materials

Management

Service &

Accountability

Partnership

Joint meetings

Goal alignment

KPI measurement

Risk mitigation

Pride and ownership of servicing our customers

Commitment to service and theIndustry since 1862



Global Footprint

United States Houston, TX Los Angeles, CA (Regional) South Plainfield, NJ (Regional)

Canada Edmonton, Alberta Estevan, Saskatchewan

Asia Jurong, Singapore

MENA Jebel Ali, U.A.E.

Europe Aberdeen, Scotland

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Distribution

Centers:

United States



U.S. Footprint

13

Distribution Center

Applied Products

DNOW Branch



Canada Footprint

14

DNOW Head Office

Automation Centers

DNOW Branch



Global Footprint

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**Sales Office

Asia Pacific

Jurong, Singapore

Balikpapan, Indonesia

Gresik, Indonesia

Jakarta, Indonesia

Mumbai, India

Shanghai, China

Brisbane, Australia

Perth, Australia

Roma, Australia

Europe

Cambridge, England

**London, England

Great Yarmouth, England

Beverwijk, Netherlands

**Pruszkow, Poland

Kristiansand, Norway

Stavanger, Norway

Aberdeen, Scotland

Latin America

Macae, Brazil

**Rio de Janeiro, Brazil

Bogota, Colombia

Ciudad Del Carmen, Mexico

Poza Rica, Mexico

Villahermosa, Mexico

**Lima, Peru

MENA and Africa

Al Khobar, Saudi Arabia

Jebel Ali, U.A.E.

Abu Dhabi, U.A.E.

**Muscat, Oman

Cairo, Egypt

**Cape Town, South Africa

Russia and CIS

Nizhnevartovsk, Russia

Sakhalin, Russia

**Aktau, Kazakhstan

Atyrau, Kazakhstan

**Baku, Azerbaijan



Distribution Centers

16

USA

Houston, TX

Los Angeles, CA (Regional)

South Plainfield, NJ (Regional)

CANADA Edmonton, Alberta

Estevan, Saskatchewan

ASIA

Jurong, Singapore

MENA Jebel Ali, U.A.E.

EUROPE

Aberdeen, Scotland



La Porte, TX Distribution Center

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450,000 Sq. Ft. Facility (10.3 acres)

126 Total Associates

70,000 Sq. Ft. Outdoor Storage (1.6 acres)

$20 Million Avg. per month of revenue support

5.5 Inventory Turn Ratio

High Use of Automation & Technology for Efficiency

DNOWs Largest Branch within the Same Facility

Reduced Inventory due to Shared Facility

Close Proximity to Customer

$8.1 Million Avg. Revenue per Month

7.5 Inventory Turn Ratio



La Porte DC Value Proposition

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Product inspection and testing to Quality Standards

Customer curb appeal 99.9% inventory accuracy of last cycle count Warehouse Operations: Aberdeen Group Study. July 2009.

6.2 million pieces processed per month Stock replenishment model / Emergency order response 46% of non-tubular sales and 41% of tubular sales supplied

by DCs

25,000+ items in inventory $64 million in inventory value Approximately 5 turns excluding tubular and 4 turns

including tubular

Warehouse Management System Voice & Wireless bar code scanners for floor level

communication Near paperless environment

Pro-active quality approach - ISO 2859 Supplier Audits Quality Checkpoints

Best-in-Class Facility

Primary Supplier in the

DNOW Supply Chain

Breadth of Product

Information Technology Platform

Quality Program



Barbers Hill DC // Full Service Tubular Yard

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100 acres available, stabilized yard, yardmanagement system, full service capabilities

One of the largest USA pipe distributors

Inventory

45,000 tons

$56 million

60% Domestic / 40% Import

~3 turns/year

$150 million throughput

Activity

45-55 outbound trucks per day

$15 million processed per month

Use of software and daily cycle counts ensures

orders are accurate and on time


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Technology and eBusiness Solutions

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Business to Business Integration

SAP to customer ERP

Business process andanalysis

Integrated supply

Bar coding

eCommerce


Inventory transparency

Punch out / roundtrip

EDI / XML

Online catalog

300,000+ SKUs

Custom masks

Product details

Item comparison

Search

Order online

Electronic payment

Credit card

Purchase order


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Reporting

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Key Performance IndicatorsDistributionNOW has enabled its system with the ability to capture CustomerAdditional Data (CAD) for every line item on every Sales Order. That information istailored to every customer and enables tracking and allocation of each line item to aspecific customer location, rig, platform, work order, cost center, project, equipmentnumber, AFE, G/L account, etc.

DistributionNOW has the capability of reporting KPIs (and not limited to)

Spend by Order Type (Stock or Buyout)

Spend by Product Category

Spend by DNOW Branch

Spend by Customer Location

On-time Delivery

Order Accuracy

Line Item Detail

8%9%

11%

13%

16%

23%

20%


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B2B Process Automation

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NOW Branch Location

Material Replenishment

Customer

Field / Operations

Information Sharing Delivery of Material

Interface with customers system

Business process and analysis

Integrated supply

Bar coding

EDI / XML


Order process

Technical support

Inventory transparency

Procure to pay

Catalog pricing

KPI quarterly reports

Documentation flow process

Customer Back Office Support

Procurement (Electronic RFQ / PO Processes)

Accounts Payable (Electronic Invoicing)


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Project Management Model

Value based offering to our customers forcapital projects

Dedicated global project centers (6)

Scope of work

Material take offs and identification

Material sourcing and procurement

Quality assurance

Scheduling and expediting

Document control

Job site coordination and field services

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Global Project Centers

Edmonton

Houston

U.K.

Dubai

Singapore

Brisbane


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On-Site Operation Support Services

Operational Support Turnaround support

On-site safety service centers

Branch service centers

Mobile service facilities

distribution now.pdf

Documents

depth of product

right inventory

supply chainmanagement

flange products

tools andsafety products

dcs toensure inventory

asthe market leader

instrumentation fittingsand