Innovation

The ideas behind i²ms began 10-12 years ago. By incorporating i²ms, Danos is able to achieve maximum efficiency and effectiveness while minimizing and avoiding unnecessary costs for their customers.

Inspiration

In an interview with Scott Theriot, a general manager at Danos, he stated, “Between 10 to 12 years ago, customers wanted more of the supply chain space besides labor, and at the time Danos predominantly provided labor in the oil and gas industry.” Working with a team of technology experts, the company developed i²ms to provide solutions to these challenges its clients were facing. Its features allow Danos to serve its clients and industry more effectively, including a customizable data platform that provides easy and flexible access for their specific needs. In addition, the network of technology partners allows them to specifically cater to unique customer needs. Lastly, the network of partners helps to provide real-time visibility and is equipped with advanced technology that allows clients to quickly track their current and future inventory. Regarding sustainability and working towards a better world, i²ms aims to reduce waste and greenhouse gas emissions. The service model also provides a growth opportunity to expand within the oil and gas industry because of its offered control and improvements in operational efficiency. These factors have made great impacts on Danos.

Overall impact

Based on a case study by Danos, they reduced a client's working capital by over fifty million dollars. This caused a total reduction in the client’s cost of ownership by 25%, which was done by redefining the client’s process through the i²ms service model. Through this, they addressed the client's issues while achieving more effective material management and improved safety. Another case study showed how they helped a client streamline their order fulfillment process and overall operations using i²ms. This was done by integrating dashboards to track and consolidate inventory. By doing this, Danos was able to help another client reduce their operational cost.

Business benefit

Since Danos created and implemented its i²ms service model, the business has benefited in a few different ways. One way Danos has benefited from this model is the ability to improve its operational efficiency by adopting a zero-inventory mindset. This has allowed them to reduce their warehouse space and manage their stock levels more effectively. It has also enabled them to minimize and avoid unnecessary costs with excess inventory. With the use of i²ms and assistance from notable partners like Excomatix and Axion, Danos has also seen an increase in customer satisfaction. The access to these partnerships allowed Danos to customize the model to the diverse needs of its customer base. Whether customers face different problems or different budgets, Danos has created a system that is more nimble and fluid than its competitors.

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Social and environmental benefit

The oil and gas industry has a rocky history with sustainability, and Danos strives to change that by providing eco-friendly solutions to support the environment in which it operates. Integrated into day-to-day operations, i²ms creates sustainable infrastructure for its clients' material tracking, transportation, and general fourth-party logistics services. As previously mentioned, the zero-inventory mindset allows its customers to order materials only when needed. This process eliminates waste from unused inventory and reduces warehouse space, thus minimizing energy consumption. The service model also offers enhanced logistics and tracking services that allow for improved transportation planning to decrease carbon emissions. Digitizing the supply chain process allows Danos to simultaneously improve its customers’ material management abilities and reduce environmental impacts. This innovation balances efficiency and sustainability, promoting social responsibility within the oil and gas industry.

Interview

Scott Theriot, General Manager of Supply Chain Services