Inventory management can be a significant and multifaceted task, as operators need to estimate usage, purchase materials, and track product expiration dates.  

Without proper management, operators can face risks such as delayed repairs due to inventory shortages as well as increased costs and ineffective repairs from excess inventory.

Challenges of Inventory Management

Without proper management, operators risk delayed repairs, financial losses, and quality control issues. Common challenges associated with inventory management are estimating requirements and limited shelf life.  

Estimating Requirements

It’s very common to stockpile and purchase in bulk to receive discounts and other pricing advantages. This can lead to carrying costs associated with the purchase, storage, and maintenance of products. Additionally, when stockpiling, operators face the challenge of estimating what will be required for a given season. This uncertainty can lead to stockpiling wasted, surplus products.  

Limited Shelf Life

Unmanaged repair kit inventories can expire quickly. Failure to utilize the product before expiration can lead to wastage and quality control issues.  

For example, an operator may purchase bulk 40 sq ft kits well in advance to receive a large discount. However, minimal repairs could be needed for the season. As a result, large kits are used for minor repairs, such as 5 sq ft. In this situation, users risk wasting 35 sq ft of material.

Following inventory management best practices and taking advantage of innovative inventory methods can mitigate the risk of wasted supplies.  

Best Practices to Manage Inventory

There are two methods that can assist operators with streamlining inventory management.  

1. Inventory Management Programs From Providers

Inventory management programs allow operators to manage inventory efforts without the time or financial burden of stocking inventories. HJ3 works with operators to provide customized inventory management that allows fresh products to be provided rotationally based on historical data. This program is free of charge to the operators and requires zero commitment other than floor space. Products are located on-site, allowing operators to get the materials needed quickly. By utilizing inventory management programs, the provider takes on the responsibility, allowing operators to focus on other tasks and eliminate carrying costs.

2. Expedited Shipping Services

Alternatively, expedited shipping services, like same-day shipping, can be a responsive solution to inventory needs. Through fast support, inventory can be purchased as needed, while repairs can be addressed quickly with minimal downtime.  HJ3 has the ability ship up to 5000sq ft of material per day for overnight delivery.

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Case Study: Immediate Pipeline Repair Through Efficient Inventory Management

Enhanced inventory management systems played an integral role in realizing immediate benefits for the pipeline owner-operator in need of a repair.

In this case, pipeline owner-operator recently faced a critical situation on a 10-inch diameter carbon steel X-60 pipe. Initial in-line inspections (ILI) indicated a possible anomaly. After excavating the line, it was revealed that there was additional corrosion damage at 70% wall loss that warranted immediate repair. Traditionally, this unforeseen change in repair would require additional materials to be shipped in, causing delays and increasing costs. However, by utilizing HJ3’s inventory management program, the operator was able to complete same-day repairs due to the readily accessible inventory located only 10 miles away.  

By finding ways to manage inventories better, operators can streamline operations, reduce costs, and minimize downtime associated with repairs. HJ3 provides both inventory management programs and same-day shipping services to simplify the task.  Contact HJ3 for more information.

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