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Material Management

Pentagon’s “Insight” materials management tool provides visibility to a top tier oil and gas company allowing them to expose inefficiency and adjust their logistics patterns to significantly reduce costs.

David Wilson

David Wilson

Group COO

  • When it comes to material management it is essential to be able to track orders as they progress through the supply chain. Equally important is an understanding of the lead times in order fulfilment and to manage stock levels in accordance with these times.

    Pentagon, through our in-house, proprietary material Management tool, Insight can provide the visibility required to allow significant shifts in the supply chain leading to tangible cost savings.

    We can pinpoint several examples where we have driven significant savings. In one such case we were able to identify that 70% of purchase orders were placed as urgent airfreight in year one of the contract. In the second year, in collaboration with our client, we drove a significant switch to sea freight with only 30% of orders being placed as airfreight and continued the trend in year three despite increased levels of activity.

    This switch came about by providing visibility to a client that operated in a challenging environment. Given the significant switch in mode of transport from airfreight to sea freight the clients costs per kilo of freight moved reduced by 47%.

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