DNOW Overview Europe

DNOW Overview

© 2014 COPYRIGHT DISTRIBUTIONNOW

Introduction to DistributionNOW

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Countries 20+

Locations 330+

Employees 5,300+

ERP System SAPTM

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


Experienced Management Team

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Merrill A. “Pete” Miller, Jr.Executive Chairman

18 years at DNOW / NOV

David A. CherechinskyChief Accounting Officer


Burk L. EllisonPresident, Energy Branches


Daniel L. MolinaroChief Financial Officer


Raymond W. ChangGeneral Counsel


21-year average tenure of Operations team, including NOV and its predecessor entities

Extensive industry experience

Focus on results, process and relationships

Robert R. WorkmanPresident and Chief Executive Officer


Note: Tenure at DNOW / NOV includes predecessor entities


Value Proposition

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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


Market Segments & Customers

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• Chevron

• Valero

• Tesoro

• Phillips66

• Bayer

• Dow

• BASF

• ExxonMobil

• BP

• Sunoco

• Boardwalk Pipeline

• BP

• Chesapeake Midstream

• DCP Midstream

• Enterprise Products

• Kinder Morgan

• Markwest

• Dominion

• ONEOK

• Energy Transfer

• Apache

• BHP Billiton -PetroHawk

• BP

• ConocoPhillips

• Devon

• EOG Resources

• ExxonMobil

• Linn Energy

• Oxy Petroleum

• XTO

Drilling

Contractors

Exploration &

ProductionMidstream Downstream &

Industrial

• Diamond Offshore

• H&P

• Nabors

• Noble Drilling

• NOMAC

• Parker Drilling

• Patterson

• Rowan Drilling

• Seadrill

• Transocean


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


Flexible Operational Model

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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


Operational Scope and Supply

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Procurement LogisticsInventory& Warehouse

Management

Business Processes

Material Sourcing

LogisticsInformation

Systems Materials

ManagementService &

Accountability

Material sourcing

– Global sourcing

– Quality system

– Globally AML

Export services

Procurement services

– On-site at customer location


Operational Scope and Supply (cont’d)

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Management

Business Processes

Material Sourcing


Systems Materials

ManagementService &

Accountability

Global inventory investment

Local availability

Inventory management

Warehouse management

Customer-owned managed inventory

Forecasting, planning and reporting

Technology enablement



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Management

Business Processes

Material Sourcing


Systems Materials

ManagementService &

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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Management

Business Processes

Material Sourcing


Systems Materials

ManagementService &

Accountability

Order fulfillment

Inventory visibility and replenishment

Planning and scheduling

Content management

Real-time reporting and analytics

eCommerce capabilities



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Management

Business Processes

Material Sourcing


Systems Materials

ManagementService &

Accountability

Partnership

– Joint meetings

– Goal alignment

– KPI measurement

– Risk mitigation

– Pride and ownership of servicing our customers

– Commitment to service and theIndustry since 1862


Global Footprint

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U.S. Footprint

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Distribution Center

Applied Products

DNOW Branch


Canada Footprint

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DNOW Head Office

Automation Centers

DNOW Branch


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


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


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


Reporting

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Key Performance Indicators

DistributionNOW has 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.

DistributionNOW has 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%


B2B Process Automation

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NOW Branch Location

Material Replenishment

Customer“Field / Operations”

Information Sharing Delivery of Material

Interface with customer’s system

Business process and analysis

Integrated supply

Bar coding

EDI / XML


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)


Safety Moment // HSE is “My Responsibility”

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DistributionNOW’s Safety Philosophy:• Our employees are our most valuable resource. No aspect of business is more important

than their personal safety. We believe that all accidents can be prevented and that safety is an integral part of everyone’s job. Our customers, management and employees are responsible for demonstrating safety leadership, providing a safe work environment and promoting safety as a value

HSE:• Incident Reporting• Training• Drug / Alcohol testing• DOT Compliance• Behavior Based Safety Program• Safety Awards

Safety while in the warehouse:• Please stay close to your host at all times• Please keep cell phone use to a minimum• The warehouse is very dynamic - please

watch for equipment• If you observe any unsafe activity, please

let us know• In the event of an emergency, listen to

your host’s instructions


Quality Management System

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Quality Goals

Increase Employee Capabilities

Maintain Accurate Inventory

Provide Quality Products and Services

Always Deliver On-Time

Continually Improve

Total Customer Satisfaction

Quality Policy

DistributionNOW is committed to meeting or exceeding the needs and expectations of our customers; to

support our quality goals and objectives; and to continually seek to improve the effectiveness of our Quality

Management System. Each employee understands and subscribes to the principle:

“QUALITY IS MY RESPONSIBILITY”

____________________________________Robert WorkmanChief Executive OfficerApril 7, 2014

Europe Area Overview

© 2014 COPY RIGHT DISTRIBUTIONNOW

Europe Area Locations

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Energy Branches

Aberdeen, UK

Great Yarmouth, UK

Beverwijk, NL

Stavanger, NO

Kristiansand, NO

Sales Office

Pruszkow, PL

Capital Valves

Cambridge, UK

London, UK


Europe Area Product Lines

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• Electrical – Cable, Plugs & Receptacles, Glands, Lighting

• PPE – Full Head to Toe Offer, Gas Detection, Fall Arrest

• Mill Tool & Safety Supplies – Tools, Lubricants, Abrasives

• Surface Preparation - Graco, Hodge Clemco

• Compounds – Bestolife, Statoil Multi-Dope, Jetlube.

• Valves – Butterfly, Gate, Ball, Globe, Check, Plug, Needle

• Wire Rope – Drill Line, Crane Rope, Mooring Rope

• Pressure Fittings – RJT Gaskets, Hammer Unions, Flanges

• Torque Equipment– Titan Torque Wrench / Drivers

• Environmental – Dulon Rig Wash, Spill Containment

• NOV Drilling Spares – Rig Solutions, Mission

• Water Systems - AquaChem


Electrical Products

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Distribution NOW’s Electrical Products Group is the leading stocking distributor for the O&G’s core electrical products and through our manufacturing partners offer high performance and globally specified products to fully service the arena and our valued customers.

• Electrical Cable• Cable glands• Harsh Area Lighting

• Plugs and receptacles• Panel boards/control• Electrical accessories


Drilling Consumables

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• Pipe Thread Compound – Bestolife, Jetlube, Statoil MultiDope

• Drilling Valves – Butterfly, Gate, Relief, Float

• Fluid End Expendables - Mission

• Centrifugal Pumps and Pump Packages - Mission

• Environmental Rig Wash - Dulon

• NOV OEM Drilling Spares


PPE & Safety

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• Work wear, including coveralls

• Disposable clothing

• Chemical protection clothing

• Foul weather wear

• Respiratory protection

• Eye protection

• Head protection

• Hearing protection

• Foot Protection

• Hand protection


Europe Area Management

Ryan Mahan Area Director Europe & SSA

Mick Haverty Country Manager United Kingdom

Jan Egil Hjelle Country Manager

Norway

Richard Dijkstra Country Manager

Netherlands

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Europe Area Sales

Ryan Mahan Area Director Europe

& SSA

Doug Lowe Sales Manager

United Kingdom

Chris Nicoll BDM

Aberdeen

Anne Ritchie BDM

Aberdeen

Glen Kalfsvel BDM

Netherlands

Marco Zonneveld PPE Specialist Netherlands

Frank Baird PLM Electrical

Europe

Ash Smith BDM SSA

Jan Egil Hjelle Country Manager

Norway

Jorgen Oen BDM Norway

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DNOW Overview Europe

Business

Transcript of DNOW Overview Europe