Supply Chain and Current Asset Optimization for a Fortune 500 Company

{"json":{"type":"doc","content":[{"type":"image","attrs":{"src":"https://schlumberger.gcs-web.com/static-files/ea0adbf1-9be7-4460-9fda-d2ba7f2425ca","alt":"Schlumberger Launches Dedicated Business to Eliminate Oil and Gas Industry's Methane and Routine Flare Emissions | SLB","title":null,"caption":"","thumbnail":null}},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","text":"Schlumberger, a leading Fortune 500 company and global oilfield service provider faced significant inventory challenges in Middle East and Asia business units. With the market’s increased demand for cost-effective horizontal fracturing services, the pressure-pumping business line was challenged to maintain its rapid growth during uncertainty in the oil market. "}]},{"type":"paragraph","content":[{"type":"hardBreak"},{"type":"text","text":"The growth came with multiple complexities, but one integral challenge was inventory management and forecasting of materials and spares. The company’s existing frameworks lacked reliability and efficiency, accounting anywhere from $30~$100 million in the company’s books. Schlumberger’s executive leadership recognized the need to improve financial stability by reducing current assets, optimizing warehousing processes, and addressing supply chain inefficiencies. They appointed me as the region's supply chain and demand planning manager for the pressure-pumping product line to tackle this."}]},{"type":"paragraph"},{"type":"heading","attrs":{"level":3},"content":[{"type":"text","marks":[{"type":"bold"}],"text":"The Problem"}]},{"type":"paragraph","content":[{"type":"text","text":"Schlumberger's pressure-pumping business line faced several key issues within its supply chain and inventory management processes. The business struggled with unreliable forecasting systems to track and forecast the consumption and stocking of parts in more than 30 business units, making it challenging to plan and budget for parts and maintenance consumption accurately. There were multiple warehouses in the region with over 15,000 SKUs in the systems and multiple vendors and contracts. The disconnected supply chain further exacerbated the problem, with over $30 million tied up in inventory across 30 business units from Egypt to New Zealand. Without control over inventory and parts, the company faced mounting operational costs and an inability to meet growing demand efficiently. The need for a streamlined and optimized inventory management process was clear."}]},{"type":"paragraph"},{"type":"image","attrs":{"src":"https://server.onli.bio/files/onliweb/64d9dc29e7942830163598504a28a2fb_sblobv1IMAGE6H6QaOctOwgcacheKeykixavkzp5y69ezlsblobv1IMAGE6H6QaOctOwg.lg.webp","alt":null,"title":null,"caption":"","thumbnail":null}},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Key Challenges:"}]},{"type":"bulletList","attrs":{"tight":false},"content":[{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","text":"Unreliable forecasting and lack of consumption records."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","text":"Multiple vendors and contracts lead to inefficiencies."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","text":"Disconnected supply chain and lack of control over inventory."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","text":"High capital levels tied up in inventory."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","text":"Inability to optimize inventory and manage growth effectively."}]}]}]},{"type":"heading","attrs":{"level":3},"content":[{"type":"text","marks":[{"type":"bold"}],"text":"The Solution"}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","text":"Hassan Paradawalla’s approach focused on transforming Schlumberger’s supply chain through process optimization, better forecasting, and inventory centralization. The solution was built around three main pillars: improving operational processes, consolidating vendors, and implementing data-driven forecasting."}]},{"type":"paragraph"},{"type":"image","attrs":{"src":"https://server.onli.bio/files/onliweb/cfeca191bf963bcf19304948c71a77bb_sblobv1IMAGEytdH9XLjKukcacheKeykix8eeq9t2yynh2sblobv1IMAGEytdH9XLjKuk.lg.webp","alt":null,"title":null,"caption":"","thumbnail":null}},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Building Relationships:"},{"type":"text","text":" The first step was establishing trust and gaining insights into the challenges across various departments. Hassan spent the first three months learning about the people involved and building relationships with key stakeholders in maintenance, operations, supply chain, and R&D. This collaborative approach allowed him to understand each team's unique challenges and identify improvement opportunities."}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Optimizing Purchasing Processes:"},{"type":"text","text":" Hassan spearheaded the development of new purchasing processes to improve efficiency and reduce complexity. This involved finalizing regional distribution centers, consolidating vendors, and implementing a more streamlined purchasing system. By consolidating vendor contracts, better terms were negotiated ensuring a robust and reliable supply chain."}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Forecasting and Budgeting:"},{"type":"text","text":" Hassan implemented a forecasting system tied to key performance metrics, including revenue, inventory turnover, and operational efficiency. This data-driven approach allowed for more accurate and reliable demand forecasting, optimizing part and maintenance consumption across all business units. Along with this, Hassan oversaw the development of budgets and performance metrics, ensuring alignment with the company’s broader financial objectives."}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Centralization and Standardization:"},{"type":"text","text":" Besides optimizing purchasing and forecasting, Hassan led the centralization of inventory management. By focusing on critical and high-spend paths, he was able to reduce unnecessary complexity and better control the flow of inventory. He also developed Standard Operating Procedures (SOPs) for stocking and vendor selection, ensuring the company could maintain control over its assets and streamline procurement across regions."}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Merging Operations:"},{"type":"text","text":" Hassan also facilitated merging two business lines and geographic regions, which improved coordination and aligned operational processes. This consolidation allowed for better resource allocation, reduced redundancies, and more efficient use of capital."}]},{"type":"paragraph"},{"type":"heading","attrs":{"level":3},"content":[{"type":"text","marks":[{"type":"bold"}],"text":"Implementation"}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","text":"The implementation of the solution involved several critical steps and cross-functional collaboration. Hassan’s team worked closely with key departments to ensure the smooth execution of the new processes."}]},{"type":"paragraph"},{"type":"image","attrs":{"src":"https://server.onli.bio/files/onliweb/ee439ac0ace8f3833669d9a5f918a4e4_sblobv1IMAGErhkDh9FQllYcacheKeykixmg93jhh1flx8sblobv1IMAGErhkDh9FQllY.lg.webp","alt":null,"title":null,"caption":"","thumbnail":null}},{"type":"bulletList","attrs":{"tight":false},"content":[{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Negotiations and Contracts:"},{"type":"text","text":" One of the early wins in the project was negotiating new contracts by consolidating the demands of business units. This resulted in better terms with vendors, reducing procurement costs and improving lead times. Hassan also played a key role in developing a vendor management strategy that ensured only the most reliable suppliers were selected."}]},{"type":"paragraph"}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Centralization of Inventory:"},{"type":"text","text":" Hassan oversaw the reduction of the company’s SKU count which allowed for a more focused and efficient inventory system. The process involved centralizing inventory and redistributing assets globally, ensuring that inventory was shared and allocated where it was needed most."}]},{"type":"paragraph"}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Forecasting System:"},{"type":"text","text":" Introducing a more advanced forecasting system was a game-changer for the company. The system incorporated historical data and predictive analytics to optimize inventory levels based on accurate demand forecasting. This change reduced the reliance on outdated methods and improved decision-making across business units."}]},{"type":"paragraph"}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"SOPs and Scorecards:"},{"type":"text","text":" Standard Operating Procedures were developed for all key processes, including stocking, vendor selection, and forecasting. In parallel, scorecards were introduced to track performance against key metrics, ensuring each business unit could monitor its success in real-time and adjust operations as necessary."}]}]}]},{"type":"paragraph"},{"type":"heading","attrs":{"level":3},"content":[{"type":"text","marks":[{"type":"bold"}],"text":"Results"}]},{"type":"paragraph","content":[{"type":"text","text":"The new approach delivered impressive results, with significant improvements in efficiency, cost reduction, and overall inventory management."}]},{"type":"bulletList","attrs":{"tight":false},"content":[{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"DSO (Days Sales Outstanding):"},{"type":"text","text":" One of the most notable achievements was the reduction of DSO by 75%. This dramatically improved cash flow and freed up capital, reducing the company’s working capital requirements."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Cost Reduction:"},{"type":"text","text":" Hassan's efforts to consolidate vendors, streamline processes, and improve forecasting resulted in a 50 basis points reduction in year-over-year spending. This translated into a cost saving of greater than $5 million."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Inventory Reduction:"},{"type":"text","text":" The company reduced its inventory by 30%, meaning fewer capital resources were tied up in excess inventory. This was achieved through more accurate forecasting, better inventory control, and improved vendor management."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Global Inventory Redistribution:"},{"type":"text","text":" The global redistribution of inventory worth $10~15 million was a significant achievement, ensuring that inventory was efficiently allocated to meet operational needs across multiple regions."}]}]},{"type":"listItem","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"SKU Reduction:"},{"type":"text","text":" 60% reduction of SKUs was one of the most impactful changes, simplifying inventory management and focusing on the most critical parts and spares that were in high demand."}]}]}]},{"type":"paragraph"},{"type":"image","attrs":{"src":"https://server.onli.bio/files/onliweb/e7f87c0a19c5594731efc08b3708fc5c_sblobv1IMAGEVVsD7pXc3W4cacheKeykixie7ynyqk1f88sblobv1IMAGEVVsD7pXc3W4.lg.webp","alt":null,"title":null,"caption":"","thumbnail":null}},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","text":"Hassan Paradawalla’s comprehensive supply chain optimization program significantly improved the company’s pressure-pumping business in the Middle East and Asia. Through a combination of process optimization, vendor consolidation, data-driven forecasting, and inventory centralization, Hassan was able to reduce costs, optimize inventory, and improve operational efficiency. The changes not only enhanced the company’s financial stability but also set the foundation for continued growth and improved control over critical assets. This case underscores the importance of strategic supply chain management in optimizing operational performance and driving financial success."}]},{"type":"paragraph"},{"type":"horizontalRule"},{"type":"paragraph"},{"type":"heading","attrs":{"level":3},"content":[{"type":"text","text":"Recommendations"}]},{"type":"paragraph"},{"type":"blockquote","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"italic"}],"text":"Hassan is a O&G professional for +13 years, with broad knowledge on O&G business especially for Middle East and Asia regions. He also had extensive experience and knowledge on Well Services, including Supply Planning end-to-end. He had been through many different positions across different function from Technical, Sales, Management, HR and Supply Chain. Hassan is a fast learner and focus on delivering results, with managing priority as one of many strength that had been displayed over his years of professional careers. He will be a valuable asset to the team with his team work and leadership. I truly enjoy the time when Hassan was part of the team as he will deliver quality result consistently, every time.’"}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","text":"Denni D."}]}]},{"type":"paragraph"},{"type":"paragraph"},{"type":"blockquote","content":[{"type":"paragraph","content":[{"type":"text","marks":[{"type":"italic"}],"text":"‘ have worked with Hassan for almost 2 years when he was WSV planner for Middle East and ASIA. I can attest that Hassan is a professional person with high skills in communication and excellent sense of analysis while deep diving for Root causes. Hassan as well is a problem solver, he succeeded in a short period to put in place a strategy to lower the SOH of the segment he was in charge in by finding mechanisms to better share and optimize the stock on hand. I had really appreciated working with Hassan and I have acknowledged and many time recognized his leadership skills and as well his collaboration and open mind. Hassan is a cost oriented person as well as business developer, he succeeded in few month to put in place a standard procedure for his segment and promote and implement VMI for this later. I recommend Hassan for any position in supply chain."},{"type":"hardBreak"},{"type":"hardBreak"},{"type":"text","text":"Mohamed S. Si A."}]}]},{"type":"paragraph"},{"type":"paragraph"},{"type":"horizontalRule"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Case Studies:"}]},{"type":"paragraph","content":[{"type":"linkBlockNode","attrs":{"blockId":"utG5fHpyhd","blockType":"post","blockName":"Ecosystem Development and Process Mapping in AgTech","block":"","pageId":"xhnCcjYLnp","isOwner":false}},{"type":"linkBlockNode","attrs":{"blockId":"WOHaG5AnIN","blockType":"post","blockName":"Operations Management and Project Deployment in Mobile EV Charging","block":"","pageId":"xhnCcjYLnp","isOwner":false}}]},{"type":"paragraph"},{"type":"paragraph","content":[{"type":"text","marks":[{"type":"bold"}],"text":"Connect:"}]},{"type":"paragraph","content":[{"type":"linkBlockNode","attrs":{"blockId":"eBbBt45tFJ","blockType":"contact","blockName":"Reach Out to Hassan","block":"","pageId":"xhnCcjYLnp","isOwner":false}},{"type":"linkBlockNode","attrs":{"blockId":"E7lpMIzH2t","blockType":"meeting","blockName":"Coffee Chat","block":"","pageId":"xhnCcjYLnp","isOwner":false}}]},{"type":"paragraph"}]},"len":9655,"title":"Supply Chain and Current Asset Optimization for a Fortune 500 Company","slug":"supply-chain-and-current-asset-optimization-for-a-fortune-500-company","lastSave":1771716291520,"shere":false,"showPublishedDate":true,"showShareOptions":true,"text":"\n\n\n\nSchlumberger, a leading Fortune 500 company and global oilfield service provider faced significant inventory challenges in Middle East and Asia business units. With the market’s increased demand for cost-effective horizontal fracturing services, the pressure-pumping business line was challenged to maintain its rapid growth during uncertainty in the oil market. \n\n\nThe growth came with multiple complexities, but one integral challenge was inventory management and forecasting of materials and spares. The company’s existing frameworks lacked reliability and efficiency, accounting anywhere from $30~$100 million in the company’s books. Schlumberger’s executive leadership recognized the need to improve financial stability by reducing current assets, optimizing warehousing processes, and addressing supply chain inefficiencies. They appointed me as the region's supply chain and demand planning manager for the pressure-pumping product line to tackle this.\n\n\n\nThe Problem\n\nSchlumberger's pressure-pumping business line faced several key issues within its supply chain and inventory management processes. The business struggled with unreliable forecasting systems to track and forecast the consumption and stocking of parts in more than 30 business units, making it challenging to plan and budget for parts and maintenance consumption accurately. There were multiple warehouses in the region with over 15,000 SKUs in the systems and multiple vendors and contracts. The disconnected supply chain further exacerbated the problem, with over $30 million tied up in inventory across 30 business units from Egypt to New Zealand. Without control over inventory and parts, the company faced mounting operational costs and an inability to meet growing demand efficiently. The need for a streamlined and optimized inventory management process was clear.\n\n\n\n\n\n\n\nKey Challenges:\n\n\n\n\n\nUnreliable forecasting and lack of consumption records.\n\n\n\nMultiple vendors and contracts lead to inefficiencies.\n\n\n\nDisconnected supply chain and lack of control over inventory.\n\n\n\nHigh capital levels tied up in inventory.\n\n\n\nInability to optimize inventory and manage growth effectively.\n\nThe Solution\n\n\n\nHassan Paradawalla’s approach focused on transforming Schlumberger’s supply chain through process optimization, better forecasting, and inventory centralization. The solution was built around three main pillars: improving operational processes, consolidating vendors, and implementing data-driven forecasting.\n\n\n\n\n\n\n\nBuilding Relationships: The first step was establishing trust and gaining insights into the challenges across various departments. Hassan spent the first three months learning about the people involved and building relationships with key stakeholders in maintenance, operations, supply chain, and R&D. This collaborative approach allowed him to understand each team's unique challenges and identify improvement opportunities.\n\n\n\nOptimizing Purchasing Processes: Hassan spearheaded the development of new purchasing processes to improve efficiency and reduce complexity. This involved finalizing regional distribution centers, consolidating vendors, and implementing a more streamlined purchasing system. By consolidating vendor contracts, better terms were negotiated ensuring a robust and reliable supply chain.\n\n\n\nForecasting and Budgeting: Hassan implemented a forecasting system tied to key performance metrics, including revenue, inventory turnover, and operational efficiency. This data-driven approach allowed for more accurate and reliable demand forecasting, optimizing part and maintenance consumption across all business units. Along with this, Hassan oversaw the development of budgets and performance metrics, ensuring alignment with the company’s broader financial objectives.\n\n\n\nCentralization and Standardization: Besides optimizing purchasing and forecasting, Hassan led the centralization of inventory management. By focusing on critical and high-spend paths, he was able to reduce unnecessary complexity and better control the flow of inventory. He also developed Standard Operating Procedures (SOPs) for stocking and vendor selection, ensuring the company could maintain control over its assets and streamline procurement across regions.\n\n\n\nMerging Operations: Hassan also facilitated merging two business lines and geographic regions, which improved coordination and aligned operational processes. This consolidation allowed for better resource allocation, reduced redundancies, and more efficient use of capital.\n\n\n\nImplementation\n\n\n\nThe implementation of the solution involved several critical steps and cross-functional collaboration. Hassan’s team worked closely with key departments to ensure the smooth execution of the new processes.\n\n\n\n\n\n\n\n\n\nNegotiations and Contracts: One of the early wins in the project was negotiating new contracts by consolidating the demands of business units. This resulted in better terms with vendors, reducing procurement costs and improving lead times. Hassan also played a key role in developing a vendor management strategy that ensured only the most reliable suppliers were selected.\n\n\n\n\n\nCentralization of Inventory: Hassan oversaw the reduction of the company’s SKU count which allowed for a more focused and efficient inventory system. The process involved centralizing inventory and redistributing assets globally, ensuring that inventory was shared and allocated where it was needed most.\n\n\n\n\n\nForecasting System: Introducing a more advanced forecasting system was a game-changer for the company. The system incorporated historical data and predictive analytics to optimize inventory levels based on accurate demand forecasting. This change reduced the reliance on outdated methods and improved decision-making across business units.\n\n\n\n\n\nSOPs and Scorecards: Standard Operating Procedures were developed for all key processes, including stocking, vendor selection, and forecasting. In parallel, scorecards were introduced to track performance against key metrics, ensuring each business unit could monitor its success in real-time and adjust operations as necessary.\n\n\n\nResults\n\nThe new approach delivered impressive results, with significant improvements in efficiency, cost reduction, and overall inventory management.\n\n\n\n\n\nDSO (Days Sales Outstanding): One of the most notable achievements was the reduction of DSO by 75%. This dramatically improved cash flow and freed up capital, reducing the company’s working capital requirements.\n\n\n\nCost Reduction: Hassan's efforts to consolidate vendors, streamline processes, and improve forecasting resulted in a 50 basis points reduction in year-over-year spending. This translated into a cost saving of greater than $5 million.\n\n\n\nInventory Reduction: The company reduced its inventory by 30%, meaning fewer capital resources were tied up in excess inventory. This was achieved through more accurate forecasting, better inventory control, and improved vendor management.\n\n\n\nGlobal Inventory Redistribution: The global redistribution of inventory worth $10~15 million was a significant achievement, ensuring that inventory was efficiently allocated to meet operational needs across multiple regions.\n\n\n\nSKU Reduction: 60% reduction of SKUs was one of the most impactful changes, simplifying inventory management and focusing on the most critical parts and spares that were in high demand.\n\n\n\n\n\n\n\nHassan Paradawalla’s comprehensive supply chain optimization program significantly improved the company’s pressure-pumping business in the Middle East and Asia. Through a combination of process optimization, vendor consolidation, data-driven forecasting, and inventory centralization, Hassan was able to reduce costs, optimize inventory, and improve operational efficiency. The changes not only enhanced the company’s financial stability but also set the foundation for continued growth and improved control over critical assets. This case underscores the importance of strategic supply chain management in optimizing operational performance and driving financial success.\n\n\n\n\n\n\n\nRecommendations\n\n\n\n\n\nHassan is a O&G professional for +13 years, with broad knowledge on O&G business especially for Middle East and Asia regions. He also had extensive experience and knowledge on Well Services, including Supply Planning end-to-end. He had been through many different positions across different function from Technical, Sales, Management, HR and Supply Chain. Hassan is a fast learner and focus on delivering results, with managing priority as one of many strength that had been displayed over his years of professional careers. He will be a valuable asset to the team with his team work and leadership. I truly enjoy the time when Hassan was part of the team as he will deliver quality result consistently, every time.’\n\n\n\nDenni D.\n\n\n\n\n\n\n\n‘ have worked with Hassan for almost 2 years when he was WSV planner for Middle East and ASIA. I can attest that Hassan is a professional person with high skills in communication and excellent sense of analysis while deep diving for Root causes. Hassan as well is a problem solver, he succeeded in a short period to put in place a strategy to lower the SOH of the segment he was in charge in by finding mechanisms to better share and optimize the stock on hand. I had really appreciated working with Hassan and I have acknowledged and many time recognized his leadership skills and as well his collaboration and open mind. Hassan is a cost oriented person as well as business developer, he succeeded in few month to put in place a standard procedure for his segment and promote and implement VMI for this later. I recommend Hassan for any position in supply chain.\n\nMohamed S. Si A.\n\n\n\n\n\n\n\nCase Studies:\n\n\n\n\n\nConnect:\n\n\n\n","html":"

Schlumberger, a leading Fortune 500 company and global oilfield service provider faced significant inventory challenges in Middle East and Asia business units. With the market’s increased demand for cost-effective horizontal fracturing services, the pressure-pumping business line was challenged to maintain its rapid growth during uncertainty in the oil market.

The growth came with multiple complexities, but one integral challenge was inventory management and forecasting of materials and spares. The company’s existing frameworks lacked reliability and efficiency, accounting anywhere from $30~$100 million in the company’s books. Schlumberger’s executive leadership recognized the need to improve financial stability by reducing current assets, optimizing warehousing processes, and addressing supply chain inefficiencies. They appointed me as the region's supply chain and demand planning manager for the pressure-pumping product line to tackle this.

The Problem Schlumberger's pressure-pumping business line faced several key issues within its supply chain and inventory management processes. The business struggled with unreliable forecasting systems to track and forecast the consumption and stocking of parts in more than 30 business units, making it challenging to plan and budget for parts and maintenance consumption accurately. There were multiple warehouses in the region with over 15,000 SKUs in the systems and multiple vendors and contracts. The disconnected supply chain further exacerbated the problem, with over $30 million tied up in inventory across 30 business units from Egypt to New Zealand. Without control over inventory and parts, the company faced mounting operational costs and an inability to meet growing demand efficiently. The need for a streamlined and optimized inventory management process was clear.

Key Challenges:

li]:my-1\"> Unreliable forecasting and lack of consumption records.

Multiple vendors and contracts lead to inefficiencies.

Disconnected supply chain and lack of control over inventory.

High capital levels tied up in inventory.

Inability to optimize inventory and manage growth effectively.

The Solution

Hassan Paradawalla’s approach focused on transforming Schlumberger’s supply chain through process optimization, better forecasting, and inventory centralization. The solution was built around three main pillars: improving operational processes, consolidating vendors, and implementing data-driven forecasting.

Building Relationships: The first step was establishing trust and gaining insights into the challenges across various departments. Hassan spent the first three months learning about the people involved and building relationships with key stakeholders in maintenance, operations, supply chain, and R&D. This collaborative approach allowed him to understand each team's unique challenges and identify improvement opportunities.

Optimizing Purchasing Processes: Hassan spearheaded the development of new purchasing processes to improve efficiency and reduce complexity. This involved finalizing regional distribution centers, consolidating vendors, and implementing a more streamlined purchasing system. By consolidating vendor contracts, better terms were negotiated ensuring a robust and reliable supply chain.

Forecasting and Budgeting: Hassan implemented a forecasting system tied to key performance metrics, including revenue, inventory turnover, and operational efficiency. This data-driven approach allowed for more accurate and reliable demand forecasting, optimizing part and maintenance consumption across all business units. Along with this, Hassan oversaw the development of budgets and performance metrics, ensuring alignment with the company’s broader financial objectives.

Centralization and Standardization: Besides optimizing purchasing and forecasting, Hassan led the centralization of inventory management. By focusing on critical and high-spend paths, he was able to reduce unnecessary complexity and better control the flow of inventory. He also developed Standard Operating Procedures (SOPs) for stocking and vendor selection, ensuring the company could maintain control over its assets and streamline procurement across regions.

Merging Operations: Hassan also facilitated merging two business lines and geographic regions, which improved coordination and aligned operational processes. This consolidation allowed for better resource allocation, reduced redundancies, and more efficient use of capital.

Implementation

The implementation of the solution involved several critical steps and cross-functional collaboration. Hassan’s team worked closely with key departments to ensure the smooth execution of the new processes.

li]:my-1\"> Negotiations and Contracts: One of the early wins in the project was negotiating new contracts by consolidating the demands of business units. This resulted in better terms with vendors, reducing procurement costs and improving lead times. Hassan also played a key role in developing a vendor management strategy that ensured only the most reliable suppliers were selected.

Centralization of Inventory: Hassan oversaw the reduction of the company’s SKU count which allowed for a more focused and efficient inventory system. The process involved centralizing inventory and redistributing assets globally, ensuring that inventory was shared and allocated where it was needed most.

Forecasting System: Introducing a more advanced forecasting system was a game-changer for the company. The system incorporated historical data and predictive analytics to optimize inventory levels based on accurate demand forecasting. This change reduced the reliance on outdated methods and improved decision-making across business units.

SOPs and Scorecards: Standard Operating Procedures were developed for all key processes, including stocking, vendor selection, and forecasting. In parallel, scorecards were introduced to track performance against key metrics, ensuring each business unit could monitor its success in real-time and adjust operations as necessary.

Results The new approach delivered impressive results, with significant improvements in efficiency, cost reduction, and overall inventory management.

li]:my-1\"> DSO (Days Sales Outstanding): One of the most notable achievements was the reduction of DSO by 75%. This dramatically improved cash flow and freed up capital, reducing the company’s working capital requirements.

Cost Reduction: Hassan's efforts to consolidate vendors, streamline processes, and improve forecasting resulted in a 50 basis points reduction in year-over-year spending. This translated into a cost saving of greater than $5 million.

Inventory Reduction: The company reduced its inventory by 30%, meaning fewer capital resources were tied up in excess inventory. This was achieved through more accurate forecasting, better inventory control, and improved vendor management.

Global Inventory Redistribution: The global redistribution of inventory worth $10~15 million was a significant achievement, ensuring that inventory was efficiently allocated to meet operational needs across multiple regions.

SKU Reduction: 60% reduction of SKUs was one of the most impactful changes, simplifying inventory management and focusing on the most critical parts and spares that were in high demand.

Hassan Paradawalla’s comprehensive supply chain optimization program significantly improved the company’s pressure-pumping business in the Middle East and Asia. Through a combination of process optimization, vendor consolidation, data-driven forecasting, and inventory centralization, Hassan was able to reduce costs, optimize inventory, and improve operational efficiency. The changes not only enhanced the company’s financial stability but also set the foundation for continued growth and improved control over critical assets. This case underscores the importance of strategic supply chain management in optimizing operational performance and driving financial success.

Recommendations

p]:ml-2\"> Hassan is a O&G professional for +13 years, with broad knowledge on O&G business especially for Middle East and Asia regions. He also had extensive experience and knowledge on Well Services, including Supply Planning end-to-end. He had been through many different positions across different function from Technical, Sales, Management, HR and Supply Chain. Hassan is a fast learner and focus on delivering results, with managing priority as one of many strength that had been displayed over his years of professional careers. He will be a valuable asset to the team with his team work and leadership. I truly enjoy the time when Hassan was part of the team as he will deliver quality result consistently, every time.’

Denni D.

p]:ml-2\"> ‘ have worked with Hassan for almost 2 years when he was WSV planner for Middle East and ASIA. I can attest that Hassan is a professional person with high skills in communication and excellent sense of analysis while deep diving for Root causes. Hassan as well is a problem solver, he succeeded in a short period to put in place a strategy to lower the SOH of the segment he was in charge in by finding mechanisms to better share and optimize the stock on hand. I had really appreciated working with Hassan and I have acknowledged and many time recognized his leadership skills and as well his collaboration and open mind. Hassan is a cost oriented person as well as business developer, he succeeded in few month to put in place a standard procedure for his segment and promote and implement VMI for this later. I recommend Hassan for any position in supply chain.

Mohamed S. Si A.

Case Studies:

Connect:

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