MRO & logistics review finding $26M for a drilling contractor
- Location
- Texas, USA
- Year
- 2024
- Engagement
- Profitability Improvement: Supply Chain & Logistics
In 2024, an oil and gas drilling contractor sought to improve unit profitability while reducing its rig count in response to market price fluctuations. The company aimed to capture savings within its $308M MRO and services spend and $33M logistics cost base.
Our team partnered with procurement and logistics to identify cost-reduction opportunities. We analyzed contracts, productivity, and industry benchmarks in procurement. We also conducted a deep dive into the logistics process, reviewing mode selection, scheduling, network design, and freight rates to uncover improvement opportunities.
Measurable impact
$26M
Identified $26M USD in annual savings opportunity
Oil & Gas
Case snapshot
Created a clear, phased plan for implementation aligned with operational priorities
Oil & Gas
Case snapshot
Positioned the company to sustain profitability despite reduced rig count
Oil & Gas