Managing lead time deterioration in the natural gas industry is a significant challenge for supply chain executives. If not addressed strategically, it can result in reduced service levels and complications in capital project delivery.
Understanding the Issue: Demand Dynamics and Lead Time Deterioration
Recent industry analysis highlights the urgency of this challenge. Demand for compressors, a critical component in the natural gas supply chain, remains elevated through 2024. According to Kodiak Gas Services, lead times for new equipment orders have extended to a year or more. With their 2024 deliveries fully contracted and deep discussions underway regarding 2025 demand, it is clear that large horsepower compression units remain in high demand. This scenario illustrates the broader issue of lead time challenges and its potential impact on service delivery within the natural gas industry.
ScottMadden’s Solution Suite: Mitigating Risk and Enhancing Efficiency
To tackle these challenges, ScottMadden offers a trio of solutions designed to help supply chain organizations navigate and mitigate the risks associated with lead time deterioration:
– SpareLogic Service Level Setting Solution: This solution uses advanced statistical analysis and artificial intelligence to help identify critical spares and set service levels across all spare parts inventory. It ensures that parts are properly prioritized to enable more advanced inventory optimization analysis.
– OptiStock Inventory Optimization Solution: Detailed usage patterns, service level requirements, and recent lead time data are used to set appropriate reorder points for every item in stock. This solution provides a data-driven approach to inventory management that aligns with the unique needs of natural gas utilities.
– LeadAhead Planner: This tool facilitates the identification of SKU-level demand at the earliest stages of the project lifecycle, addressing the need for early demand capture. It aligns project planning and delivery timelines with the realities of current lead times, enabling more effective and efficient project execution.
Embracing Strategic Solutions for Supply Chain Excellence
ScottMadden’s strategic solutions help companies avoid unintended service level reductions and enhance their overall supply chain efficiency and reliability. In an industry where the stakes are high, adopting a proactive and informed approach to supply chain management is not just beneficial—it’s essential.
