September 2020
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Supply Chain: How to reduce piping inventory
Piping represents a significant part of the plant cost, ranging from 15%–25%.1 Materials stored in warehouses or storage facilities cost companies in terms of personnel, materials, time, space, insurance, risk, etc. This article proposes cost-saving strategies for inventory reduction. Further, it emphasizes consistent naming conventions to avoid creating duplicate/redundant items.
The Author
Jamshaid Abid is a Piping/Project Engineer with more than 16 yr of experience in project design, engineering, installation and commissioning for onshore oil and gas (greenfield and brownfield developments) and ammonia-urea plants in Iraq, Pakistan, the UAE and Yemen. He holds a BE degree in mechanical engineering from the University of Engineering and Technology in Taxila, Pakistan.
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