Tenaris Dalmine

A Supply Chain Planning Case Study

Tenaris_EN copia.jpg
Highlights
  • Wanted to consider changes in sales price and material cost variations in inventory planning
  • Employed segmentation strategy to identify service levels by class
  • Big improvement in service levels and inventory

Project and Objectives

Tenaris Dalmine chose SO99+ as their supply chain planning tool to overcome difficulties in the distribution of steel products, which impacted their customer service levels and, as a result, their sales. In keeping with the group’s philosophy of developing a strong client-oriented organisation, Dalmine’s main targets were to:

  • Guarantee a high service level to their customers;
  • Plan inventory replenishment taking into account variables such as sales price variations, raw material price variations, etc.;
  • Reduce stock levels;
  • Reduce obsolescence risks.

With these objectives, Tenaris Dalmine decided to implement SO99+, a product for inventory optimization and supply chain planning based on achieving customer service level excellence.

Day-to-Day

It employs a segmentataion strategy to identify specific service levels for each service class.

Results & Benefits

In approximately 14 months, Tenaris increased service levels by 12%, and yet was able to achieve a 23% reduction in inventory levels.

Services-Level.jpg
Tenaris.jpg
Tenaris is a leading supplier of tubular goods to the oil and gas industry. The company operates in 38 countries worldwide, and has 3185 employees, produces 950,000 tons of finished products annually, and its annual sales exceed 1 billion USD.

SHARE THIS CASE HISTORY