Company Overview. Safety Quality Reliable Service

Transcription

1 Company Overview Safety Quality Reliable Service

2 Our Company MRC Global is the largest, global distributor of pipe, valve and fitting (PVF) products and services to the energy and industrial markets. Our customers produce, transport, distribute and refine oil, natural gas liquids (NGLs) and gas. They make chemicals, mine and process minerals and are active in general process industries. Their businesses are capital intensive and their operating processes and operating environments are often extreme. These industries and conditions are demanding and require a supplier that understands the importance of safety, reliability and quality. Since 1921, MRC has built our business to serve these customers. Our Core Values Safety Leadership Business Ethics Operational Excellence Satisfaction Financial Performance Teamwork Employee Development Community/Charity Involvement

3 we listen to our customers... Timely and Reliable Delivery: Downtime for our customers is extremely costly. A supplier who can deliver material on time, every time is critical. Quality Assurance: Our customers need to know that the products they use will function properly in potentially dangerous environments for the long term. A proven quality program is critical to their operational success when choosing a distribution partner. Dedication to Safety: Our customers often operate in potentially hazardous situations. A strong safety culture within their supplier base is paramount to protect people and preserve assets. MRC Global has spent the last 90+ years listening to our customers. Working together, we have identified common needs and wants for a PVF distribution partner. Needs The capabilities fundamental to keeping customer operations running smoothly and safely Material Management Expertise: Our customers want a PVF distribution partner that can manage material efficiently. Our customers want to focus on operating their businesses, not managing material to run their operations. Material Management Expertise P E O P L E A N D Sourcing Capability Sourcing Capability: Our customers want a PVF partner that can navigate the vast marketplace to identify best-in-class manufacturers globally. Wants Services and company traits that go beyond what a general supply partner or internal division can provide Process Efficiencies: Our customers want a supplier that can interface with their purchasing systems. Process Efficiencies Timely and Reliable Delivery Quality Assurance Competitive Pricing Competitive Pricing: Our customers want competitive pricing for the material they buy. And continue to build An organization to support them MRC Global has built a distribution company that directly addresses the needs and wants of our customers. We focus solely on the distribution of PVF products and services and are experts at every facet of this business. MRC Attributes Global Footprint Depth and Breadth of Product Broad Manufacturing Base Inventory Management Material Management Quality Program Safety Leadership Systems Connectivity Corporate Sustainability Stable Supplier: Our customers want a long term supply chain partner. They want to work with a company that is focused on growing with them over time instead of making a quick sale. Product Standardization: Our customers want to simplify their supply chain and lower the cost of product maintenance by standardizing the products they use in all of their operations around the world. Stable Supplier Product Standardization Dedication to Safety C O M M U N I C A T I O N Consolidated Vendor Base people and Communication Our business is possible because of our commitment to employing the industry s best people and constant communication with our suppliers and customers. MRC Global is designed around this deeply held belief. Our people and communication philosophy is core to everything we do. Technical Product Support Technical Product Support: Our customers want to interface with a knowledgeable and local sales staff that can assist in the sourcing and purchasing of proper materials. Consolidated Vendor Base: Our customers want to limit the number of suppliers they work with to improve accountability and increase process efficiency around ordering, invoicing and delivery.

4 G l o b a l F oo t p r i n t One of MRC Global s fundamental design premises is to have inventory and a local sales force close to our customers operations around the globe. MRC Global has more than 410 service locations, servicing customer operations in more than 45 countries. We operate 27 valve automation centers and 16 regional distribution centers (RDC). Branch Locations Regional Distribution Centers Valve Automation Centers Timely and Reliable Delivery Material Management Expertise Sourcing Capability Technical Product Support Consolidated Vendor Base Product Standardization Process Efficiencies Stable Supplier 5 Edmonton Houston Bradford Singapore Perth

5 Depth & Breadth of Product MRC Global maintains one of the largest PVF inventories in the world. We stock more than 230,000 SKUs and have more than $1 billion in inventory throughout our global network of service locations. Sourcing Capability Competitive Pricing Technical Product Support Products Pipe and tubular products Fittings and flanges Valves Valve automation products Corrosion resistant products Piping components and accessories Materials Carbon steel Low temperature carbon steel High yield carbon steel Stainless steel Duplex Super duplex High nickel alloy Gas distribution and transmission products Steam products Instrumentation products Oilfield products Mill supplies and safety products Titanium Polyethylene Brass Iron Copper Fiberglass Broad manufacturing base MRC Global connects 18,000+ suppliers with 18,000+ customers worldwide, saving both parties time and money. We manage our supply chain to optimize flexibility around lead times, continuity of supply and purchasing power. We do not own, or invest in, manufacturing operations that make the products we supply. Our broad manufacturing base is one of our greatest value drivers and increases our flexibility to source material that best meets our customers requirements. Sourcing Capability Competitive Pricing Technical Product Support Stable Supplier supplier identification and quality process Sourcing from 35+ countries Formal supplier registration program 100+ potential supplier site visits per year on-site supplier quality assessments annually Embedded inspectors in key sourcing countries ISO 9001 & Inbound inspection process Non-conformance reporting Sweet Spot sourcing No single manufacturer can support all MRO and project PVF requirements Manufacturers gravitate to core competencies and niche markets Prices, quality and lead times vary greatly between manufacturers for the same products sweet spot Defining a manufacturer s sweet spot is one of MRC Global s strengths. We will leverage a customer s PVF requirements using multiple manufacturers to achieve the highest quality with the lowest cost. Commodity Items Market competition has produced very little pricing difference among the various AML manufacturers on common price sheet items. Total Line Items Total Spend Specialty Items Pricing on specialty PVF items can vary widely between manufacturers depending on alloy, size, pressure class, product type and delivery requirements. 7 represents various manufacturer price points 8

6 Inventory Management We focus on having the right product when and where our customers need it. We have developed a distribution technique and demand management system to forecast and manage inventory in the most efficient, cost-effective way while maximizing availability and customer service. This technique also enables our local branches to benefit from large regional inventories within 24 hours. customer material management Material management is at the core of everything we do. MRC Global offers a wide range of services for customer inventory management designed to let our customers focus on their core business. Process Efficiencies FORECASTING INVENTORY PLANNING Process Efficiencies Solutions: Warehouse labor / storeroom management Vendor managed inventory / zone store management Consignment inventory Point-of-use dispensing Project services / turnaround trailers Management of capital spares and major equipment parts Purchasing services Centralized customer service centers technology network DISTRIBUTION REQUIREMENTS PLANNING We utilize scanning technology, bar codes, an extensive range of electronic transactions, such as EDI, XML and others, to support the customer s procurement to payment process. MRC Global also has an electronic online catalog which can be made available to our customers upon request Regional Distribution Network MRC Global s distribution model consolidates inventory into RDCs. This minimizes inventory investment and maximizes availability. Supply chain efficiency and service levels also benefit from this process. Our RDCs fulfill orders daily and replenish stock weekly, resulting in higher fill rates and improved delivery performance. 9 10

7 Quality Program For MRC Global s customers, quality assurance is paramount. Not all manufacturers reliably and consistently produce a quality product. MRC Global is continually challenged to source the global manufacturing marketplace to obtain quality products at competitive prices. Our quality program is a core competency and much needed solution for our customers. Safety Leadership MRC Global is wholly committed to creating a safe and healthy workplace. We provide extensive training and all the necessary resources to promote safe work practices in all sectors of our business. Every employee is personally responsible for ensuring that they, along with every coworker, go home safe at the end of each day. We believe that the only way to serve our customers is to make safety our first priority. Sourcing Capability Competitive Pricing Process Efficiencies MRC Global s Approved Supplier List (ASL) is a key component to our overall Supplier Quality Program. Many customers leverage our investment in developing the ASL by making it their own. Stable Supplier Safety is a Core Value. Zero Accidents is Our Goal. MrC Global Safety Strategy Consistency No matter where in the world, every single MRC Global employee has the same dedication to health and safety. Culture At MRC Global, we hold one another accountable for minimizing risks and continually working towards a safe work environment. Competence We focus on prevention by utilizing employee safety training and development that continues throughout our careers. Connectedness Our safety leaders genuinely care for their teams welfare. Individuals are encouraged to participate in creating a safe workplace. Credibility As a company, we commit time and resources to uplift our safety culture. We don t just talk about safety being our first priority - we take real steps toward creating a safe and effective company. Key Components to supplier quality Program Our on-site manufacturer audits, inbound inspections and non-conformance management all make up vital elements of our program. MRC Global employs a team of more than 40 people to deliver these capabilities through their deep manufacturing and PVF industry experience and engineering, quality assurance and auditing qualifications. Manufacturer Audits inspections Non-conformance management On-site Assessment by in-house ISO lead auditors per year 2-5 Days to complete Review business norms, infrastructure and quality system Visual inspection Dimensional inspection PMI for alloy Samples tested independently for chemistry and mechanical properties Real-time, electronic reporting Recognize problem Limit impact Identify cause Resolve and correct 11 12

8 Systems Connectivity MRC Global is a leader in adopting and investing in new technology to better serve our customers. We tailor our system to match our customers needs and capabilities, streamlining and automating business processes to improve their supply chain functionality and creating significant cost savings. Corporate Sustainability We are proud of our long history of distributing PVF through multiple economical cycles. Our proven stability is important not only to our customers, but to our employees and suppliers. Our reputation as a company that operates with integrity and invests in our communities is vital to our success. Time and Reliable Delivery Competitive Pricing Stable Supplier Process Efficiencies MRC offers the following opportunities to streamline operations: Eliminate redundant cost structures through systems integration Create transaction efficiencies that feed seamlessly from one system to another Automate the following processes: Purchase orders Goods issues and receipts Advanced ship notices Invoices and payments Develop integration linkages such as EDI, XML, FTP (flat files), etc. Utilize bar code technology throughout the supply chain Zone store management Turn around/project trailers Pick tickets Packing lists Package labeling Streamline ordering process by utilizing MRC Global s electronic catalog (MRC Online) Stable Supplier MRC Cares Uplifting the communities where we live and work is central to our culture. MRC Global supports education, health and human services, the arts and humanities and civic projects through the MRC Foundation and MRC Cares initiatives. Financial Strength MRC Global has a long history of profitability and a secure, long-term capital structure. MRC Global has the balance sheet and liquidity to invest in growth opportunities. Mix MRC Global has a very broad base of customers. Our top 25 customers represent approximately 50% of sales. Diverse Suppliers MRC Global has a diverse group of suppliers, protecting us from uncertainty in the market, lead time fluctuations and price fluctuations. Business Activity Mix On average, 28% of MRC Global s business can be attributed to project sales and 72% to MRO sales activity. Since 2000, MRC Global has enjoyed an MRO contract retention rate of 95%. Warehouse & Receiving Inventory Control Distribution Requirements Planning Accounting & Finance Purchasing & Material Requests & Achieving Eff Order Processing iciencies MRC Green Team The MRC Green Team implements initiatives aimed at helping MRC minimize our impact on the environment. From a company-wide recycling program to energy efficient lighting in our warehouses we are taking action. s +18,000 50% s Top 25 50% Project Sales 28% MRO Sales 72% 13 14

9 Corporate Headquarters 2 Houston Center 909 Fannin, Suite 3100 Houston, TX Phone: (877) Branch Locations Regional Distribution Centers Valve Automation Centers Disclaimer Products, brands and services outlined in this brochure vary by geographic region and may not be available in all areas. Please contact your local authorized representative for further details. REV