Company Description

2014 COPYRIGHT DISTRIBUTIONNOW

Introduction to DistributionNOW
2
Countries 20+
Locations 330+
Employees 5,300+
ERP System SAP
TM
DistributionNOW will be recognized as
the market Leader in Supply Chain
Management through superior customer
service by leveraging the strengths of our
employees, processes, suppliers and
information
DistributionNOW VISION
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Value Proposition
3
A Critical Link Through Leading
Supply Chain Technology
Product Offering Market Segments
Knowledgeable people
Customer
Product
Application
Materials management
Proven processes
Quality management
Supply chain expertise
Extensive infrastructure
United States
Canada
International
Procurement advantage
Broad supplier base
Single source provider
Global sourcing
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Overview of Key Product Categories
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Pipe & Tube
Leader in breadth and depth of product in many grades
Carbon, alloy, stainless pipe, instrumentation tubing, fiberglass and poly
Valves
Valves covering both upstream and downstream sectors
Ball, multi-turn, specialty check, butterfly, gate and plug
Valve actuation
Fittings &
Flanges
Carbon and alloy steel in butt-weld & forged, bolts & gaskets, instrumentation fittings
and other fittings
Leading position in high yield fittings and flange products for the gas pipeline industry
Mill, Tool and
Safety
Extensive inventory of mill, tool, safety and janitorial products
Comprehensive product line includes hand, power, precision and cutting tools and
safety products and services
Drilling &
Production
Products
Major product offerings include OEM parts, rotary and vibrator hoses, fluid end
expendables, triplex pump modules, drill lines, choke and kill hoses
Artificial Lift
Product offering includes conventional rod pumps, progressive cavity (PC) pumps,
variable frequency drive systems (VFD) and surface equipment
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Blue-Chip Customers and Suppliers
5
Suppliers Customers
/
Drilling Contractors
Exploration & Production
Midstream
Downstream & Industrial
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Flexible Operational Model
6
Branch network model
supported by DCs to
ensure inventory is
maintained locally.
Right inventory in right
place at the right time
BRANCHES
Broad sourcing
capability to
consolidate customer
requirements on
multiple lower value or
non-core items
EXPORT SUPPLY CHAIN
SERVICES
Vast offering of supply
chain services to
increase efficiency and
lower cost within the
supply chain
CAPITAL PROJECTS &
VALVE ACTUATION
Global sourcing and
expediting capability to
ensure correct product
is delivered to the job
site in accordance with
project requirements
Shipment direct to
customer facility from a
regional distribution
warehouse
REGIONAL DC
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Operational Scope and Supply
7
Procurement
Logistics Inventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
Material sourcing
Global sourcing
Quality system
Globally AML
Export services
Procurement services
On-site at customer location
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Operational Scope and Supply (contd)
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Procurement
Logistics Inventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
Global inventory investment
Local availability
Inventory management
Warehouse management
Customer-owned managed inventory
Forecasting, planning and reporting
Technology enablement
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Operational Scope and Supply (contd)
9
Procurement
Logistics Inventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
Service
Company-owned fleet to service last mile
3rd party freight agreements
24/7 delivery service
Cost savings
Freight consolidation
Global logistics management
Order consolidation
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Operational Scope and Supply (contd)
10
Procurement
Logistics Inventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
Order fulfillment
Inventory visibility and replenishment
Planning and scheduling
Content management
Real-time reporting and analytics
eCommerce capabilities
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Operational Scope and Supply (contd)
11
Procurement
Logistics Inventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
Partnership
Joint meetings
Goal alignment
KPI measurement
Risk mitigation
Pride and ownership of servicing our customers
Commitment to service and the
Industry since 1862
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Global Footprint
United States
Houston, TX
Los Angeles, CA (Regional)
South Plainfield, NJ (Regional)
Canada
Edmonton, Alberta
Estevan, Saskatchewan
Asia
Jurong, Singapore
MENA
Jebel Ali, U.A.E.
Europe
Aberdeen, Scotland
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Distribution
Centers:
United States
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U.S. Footprint
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Distribution Center
Applied Products
DNOW Branch
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Canada Footprint
14
DNOW Head Office
Automation Centers
DNOW Branch
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Global Footprint
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**Sales Office
Asia Pacific
Jurong, Singapore
Balikpapan, Indonesia
Gresik, Indonesia
Jakarta, Indonesia
Mumbai, India
Shanghai, China
Brisbane, Australia
Perth, Australia
Roma, Australia
Europe
Cambridge, England
**London, England
Great Yarmouth, England
Beverwijk, Netherlands
**Pruszkow, Poland
Kristiansand, Norway
Stavanger, Norway
Aberdeen, Scotland
Latin America
Macae, Brazil
**Rio de Janeiro, Brazil
Bogota, Colombia
Ciudad Del Carmen, Mexico
Poza Rica, Mexico
Villahermosa, Mexico
**Lima, Peru
MENA and Africa
Al Khobar, Saudi Arabia
Jebel Ali, U.A.E.
Abu Dhabi, U.A.E.
**Muscat, Oman
Cairo, Egypt
**Cape Town, South Africa
Russia and CIS
Nizhnevartovsk, Russia
Sakhalin, Russia
**Aktau, Kazakhstan
Atyrau, Kazakhstan
**Baku, Azerbaijan
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Distribution Centers
16
USA
Houston, TX
Los Angeles, CA (Regional)
South Plainfield, NJ (Regional)
CANADA
Edmonton, Alberta
Estevan, Saskatchewan
ASIA
Jurong, Singapore
MENA
Jebel Ali, U.A.E.
EUROPE
Aberdeen, Scotland
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La Porte, TX Distribution Center
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450,000 Sq. Ft. Facility (10.3 acres)
126 Total Associates
70,000 Sq. Ft. Outdoor Storage (1.6 acres)
$20 Million Avg. per month of revenue support
5.5 Inventory Turn Ratio
High Use of Automation & Technology for Efficiency
DNOWs Largest Branch within the Same Facility
Reduced Inventory due to Shared Facility
Close Proximity to Customer
$8.1 Million Avg. Revenue per Month
7.5 Inventory Turn Ratio
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La Porte DC Value Proposition
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Product inspection and testing to Quality Standards
Customer curb appeal
99.9% inventory accuracy of last cycle count
Warehouse Operations: Aberdeen Group Study. July 2009.
6.2 million pieces processed per month
Stock replenishment model / Emergency order response
46% of non-tubular sales and 41% of tubular sales supplied
by DCs
25,000+ items in inventory
$64 million in inventory value
Approximately 5 turns excluding tubular and 4 turns
including tubular
Warehouse Management System
Voice & Wireless bar code scanners for floor level
communication
Near paperless environment
Pro-active quality approach - ISO 2859
Supplier Audits
Quality Checkpoints
Best-in-Class Facility
Primary Supplier in the
DNOW Supply Chain
Breadth of Product
Information Technology Platform
Quality Program
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Barbers Hill DC // Full Service Tubular Yard
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100 acres available, stabilized yard, yard
management system, full service capabilities
One of the largest USA pipe distributors
Inventory
45,000 tons
$56 million
60% Domestic / 40% Import
~3 turns/year
$150 million throughput
Activity
45-55 outbound trucks per day
$15 million processed per month
Use of software and daily cycle counts ensures
orders are accurate and on time
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Technology and eBusiness Solutions
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Business to Business Integration
SAP to customer ERP
Business process and
analysis
Integrated supply
Bar coding
eCommerce
Procurement services
Inventory transparency
Punch out / roundtrip
EDI / XML
Online catalog
300,000+ SKUs
Custom masks
Product details
Item comparison
Search
Order online
Electronic payment
Credit card
Purchase order
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Reporting
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Key Performance Indicators
DistributionNOWhas enabled its system with the ability to capture Customer
Additional Data (CAD) for every line item on every Sales Order. That information is
tailored to every customer and enables tracking and allocation of each line item to a
specific customer location, rig, platform, work order, cost center, project, equipment
number, AFE, G/L account, etc.
DistributionNOWhas the capability of reporting KPIs (and not limited to)
Spend by Order Type (Stock or Buyout)
Spend by Product Category
Spend by DNOW Branch
Spend by Customer Location
On-time Delivery
Order Accuracy
Line Item Detail
8%
9%
11%
13%
16%
23%
20%
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B2B Process Automation
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NOW Branch Location
Material Replenishment
Customer
Field / Operations
Information Sharing Delivery of Material
Interface with customers system
Business process and analysis
Integrated supply
Bar coding
EDI / XML
Procurement services
Order process
Technical support
Inventory transparency
Procure to pay
Catalog pricing
KPI quarterly reports
Documentation flow process
Customer Back Office Support
Procurement (Electronic RFQ / PO Processes)
Accounts Payable (Electronic Invoicing)
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Project Management Model
Value based offering to our customers for
capital projects
Dedicated global project centers (6)
Scope of work
Material take offs and identification
Material sourcing and procurement
Quality assurance
Scheduling and expediting
Document control
Job site coordination and field services
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Global Project Centers
Edmonton
Houston
U.K.
Dubai
Singapore
Brisbane
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On-Site Operation Support Services
Operational Support
Turnaround support
On-site safety service centers
Branch service centers
Mobile service facilities