SC Global Tubular Solutions LLC (SCGTS), a Sumitomo Corporation (SC) subsidiary, works with SC tubular business units to perform OCTG supply chain management functions worldwide.
SCGTS’ responsibilities include assisting the business units in the following areas:
• Evaluate project opportunities
• Submit project proposals
• Implement projects
• Operate projects as needed
• Provide ongoing assessment of operations
• Recommend tactical operational adjustments
• Provide repository of standard policies and procedures
• Provide repository of benchmarks and key performance indicators
• Provide and maintain technology tools
• Provide and maintain computer system infrastructure
SCGTS is Sumitomo’s center of expertise for OCTG supply chain management. Its staff consists of personnel who have spent years working the OCTG supply chain as well as personnel in training to become experts in this area.
SCGTS has its roots in the relatively recent oil company OCTG business model change. In the past, oil companies managed all of the OCTG supply chain and primarily purchased their OCTG from the mill. Now, oil companies purchase OCTG at the time and point of need and outsource the management of OCTG from the mill to the point of purchase. This outsourcing has created a new market and provided a business opportunity for those companies capable of providing these services.
Sumitomo Corporation made a strategic decision to become a player in this new market. The decision to enter this market was a logical extension to SC’s already well-defined role as a world-class provider of OCTG products, primarily through its affiliation with Sumitomo Metal Industries.
Sumitomo Corporation, with SCGTS’ help, has been very successful in capturing OCTG supply chain management projects. SCGTS presently supports projects in Australia, the North Sea, Alaska, the Far East, and West Africa. Opportunities for additional projects in areas such as the Middle East, Russia, former Soviet Union countries, and China are anticipated in the future.
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