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made everything easier. Instead of adding everything up individually, we could just type in how many metres we needed and Tallys would figure it out.”

Eliminating errors leads to increased efficiency Even with checks and balances in place to ensure accuracy, using a manual tracking method for OCTG inventory isn’t ideal. Jason Newman talks about the difference automated inventory management made in their day-to-day operations. “[Working] with Tallys, it allowed us to have a system where, once you have the name of the company you’re sending joints out to or getting joints from, it does all the work for you. Tallys helped us, because it shortened the amount of time we had to spend on entering things into the system, so it increased our efficiency, and there were way fewer mistakes. It was a really beneficial thing. Before Tallys, we were probably spending an hour every day checking for errors. Every transaction was taking 2 minutes. With Tallys, we’ve cut that time in half, and we’re not spending any time checking for errors. It’s hard to put a number on the savings, but it’s pretty significant.” In 2013, T Bar 1 Transport was named Lloydminster’s Business of the Year. Jason attributes the award to the company’s service record, and their increased efficiency. “People like to deal with us because of our customer service and efficiency. They get their pipe on time, they get it at a reasonable price, and they get to deal with good people.” According to Ian McKinley, adopting an automated inventory management systems has eliminated 100% of errors. “100% accuracy isn’t an exaggeration. We have no errors. Zero errors. 100% audits. We audit the yard probably 6 different times throughout the year, and we’re consistently 100%. The only time we have a mistake is from human error, Tallys does not make any mistakes.”

A busy Canadian pipe yard loads and offloads as much as 50,000 metres of pipe every day.

Anyone managing their tubular inventory with some level of precision will appreciate a system that breaks everything down in terms they’re comfortable with.

exciting. Over the last five years, dumping of OCTG sold below cost to the North American market has driven prices down in the domestic market. The recent anti-dumping rules imposed by the USITC (international trade commission) represent renewed opportunities for pipe and steel mills in Canada and the United States.

An industry on the move

different lot numbers, different volumes, different pipe. You need to be able to manipulate the software to each one of those clients, and run the business to match those clients.

More initiatives in Canada, and a US goal of becoming energy independent by 2020, all mean more opportunities for pipe yards, manufacturers, everyone in the OCTG industry.

Digital communication tools continue to guide the direction of the OCTG industry. Clients expect real-time communication and reporting regardless of location. Security and accuracy are major milestones in the ongoing development of inventory management systems.

What anybody can learn to do, is to make the software work for them. As the business grows, the software grows with you, and you develop shortcuts to let the software do your job easier. When you’re handling tubular goods, data entry is the key element. We’ve advanced to the point where we never data enter anything everything we do is done electronically.”

We’ve done very well in the Canadian market, and we’re excited to be able to serve the US market in the same way.”

Ian talks about Winalta and Tallys’ relationship over the years, pointing out that each was instrumental in shaping the growth and development of the other. “We’re talking about 9, 10 years of development. Our business has grown, and our yard has grown, and we could be managing 5, 6 clients at any one time, and we’re entering

Craig Reimer has some ideas about the future of inventory management in the OCTG industry. “US spending on upstream exploration and production is up 8.5% in 2014 over the previous year, and Canada is showing growth around 4.5%. The growth in exploration and production means growth in OCTG, which is

Northwestern Support Professionals Inc. +1 877 661 9990 (toll free) simon@nwsp.ca www.nwsp.ca

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OGI Autumn 2014  
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