Materials management response to cost reduction demand
Well known for providing personnel and associated services to the industry’s major operators, the company has, until now, offered materials management services exclusively on request. To date, Frontier has undertaken three major campaigns, which have been carried out for international operators in Aberdeen.
The launch of this service to the wider market takes the current industry climate into account, allowing clients to take advantage of the cost reductions associated with materials management, including short term cash flow from disposal of surplus/obsolete inventory, reduced storage costs, re-negotiation of supplier contracts and optimum utilisation of existing inventory.
Frontier chairman, Mark Clarke explains how the expansion of this service will have a significant impact on clients: “The oil and gas sector is facing real challenges right now, so it makes sense for us to open up one of the most effective cost reduction exercises that a major operator or service company can undertake.
“We know from previous experience with clients, that in-house rationalisation of materials management costs is complicated, time-consuming and therefore regularly neglected - and yet its effect is significant and practically immediate. Due to our Materials Management service, an operator client has recently reported to us savings of several million pounds to its UK operations.”
Frontier’s strong in-house engineering presence provides invaluable insight and understanding of all aspects of the oil and gas sector. Its experience includes working with both the service sector and the majority of operators, on both a local and international basis. International client demand has led the company to successfully expand in several key regions, with wholly owned subsidiaries established in Asia, East Africa and the Caribbean.