Corrosion Resistant Alloys, LP (CRA) started as a distributor of high alloy tubulars to the upstream oil and gas industry. Since our founding, CRA has targeted the quick delivery CRA tubular market. However, the way in which we support this market has evolved to better meet the needs of our customers.
CRA has had the opportunity to see the inefficiencies of distribution firsthand. At one point we had the largest CRA tubular inventory in the world, and we constantly struggled to accurately forecast future demands due to cycles in the industry, nickel price fluctuations, and constant specification changes.
Mills typically quote long lead times with the goal of standardizing production and filling capacity, creating the need for operators and service companies to order material for projects months or years in advance. Often times, these orders are placed before the well has finished final engineering, leaving customers with very little flexibility in the event there is an unexpected change. From the time of order placement to the actual need date, we have seen everything from project cancellations to change in well design, to revised deliveries, and a long list of other obstacles. The non-standard quantities, specifications, lengths, and tolerances are often disruptive to the standard mills. When the mills are pressured to accommodate such business for their good customers it creates pressure on their ability to maintain reliable deliveries to their other customers. No one wins in this scenario. CRA’s model alleviates pressure on the standard mills needing to accommodate this business.
The primary purpose of distribution is to service companies that do not have time to wait for material from the mill. Distributors mitigate their risk by stocking standard items. As a result specialized and customer sizes, are rarely available from inventory.
This is where CRA’s just-in-time job shop mill manufacturing model was born. CRA can provide you the exact material size and specification you need, in the exact quantities you need it, in as quick as a few days.
For more information on the JIT advantage click here or the JIT process click here.