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SHIPBUILDING REQUIRES A DIFFERENT SUPPLY STRATEGY
Building commercial vessels isn't a short-term project. Material planning, procurement, and production schedules can span multiple years, requiring careful coordination across purchasing, operations, and project management teams.
For one great lakes shipbuilder, wire was a critical component of a large Service Operation Vessel (SOV) project. While material availability was never in question, traditional purchasing methods created challenges that affected warehouse capacity, working capital, and project efficiency.
Large wire purchases often arrived long before installation, consuming valuable storage space and tying up cash monthsāor even yearsāahead of production needs.
WHEN TRADITIONAL PURCHASING MODELS CREATE OPERATIONAL FRICTION
As project timelines extended, several challenges became increasingly difficult to manage:
- Bulk wire deliveries consuming warehouse space
- Cash committed to inventory well before installation
- Material release schedules misaligned with production milestones
- Complex accountability across multi-year projects
- Industry-specific sourcing and compliance requirements
The challenge wasn't simply finding a supplier.
The shipbuilder needed a partner that could align material flow with how ships are actually built.
LOOKING BEYOND THE PRODUCT
During an onsite visit, Werner evaluated more than material requirements.
The result was a supply strategy that improved financial flexibility while supporting production continuity.
The team analyzed wire consumption patterns, reviewed storage constraints, and mapped purchasing schedules against production milestones. Rather than focusing on how much wire was being purchased, Werner focused on how material moved through the shipyard.
That shift in perspective uncovered an opportunity to redesign the entire supply model around production needs.
A MANAGED SUPPLY STRATEGY BUILT FOR MARINE MANUFACTURING
Together, the shipbuilder and Werner developed a customized supply program designed specifically for long-cycle vessel projects.
Instead of asking the shipbuilder to adapt to a standard distribution model, Werner built a program around the shipyard's operations.
The result was a supply strategy that improved financial flexibility while supporting production continuity.
RESULTS THAT EXTENDED BEYOND INVENTORY
The managed supply model required coordination across purchasing, operations, and project management teams. While adoption took time, the operational benefits became clear.
The shipbuilder gained greater control over inventory, improved alignment between purchasing and production, and reduced the burden associated with storing large volumes of material onsite.
PROJECT IMPACT
- Improved cash flow through staged invoicing tied to material releases
- Reduced onsite warehousing requirements
- Maintained reliable wire availability throughout a multi-year vessel build
- Strengthened purchasing and operational alignment
- Expanded annual business opportunity from several hundred thousand dollars to participation in a $1 million RFP opportunity
SUPPORTING LONG-TERM GROWTH
In marine manufacturing, supply chain decisions affect more than inventory levels. They influence production schedules, working capital, and overall project performance.
By aligning material availability with production demand, the great lakes shipbuilder created a more efficient approach to managing critical materials while maintaining the flexibility required for complex vessel construction projects.
"In marine and heavy industrial environments, material timing is critical. Our logistics networkāincluding dedicated next-day delivery routesāgives us the flexibility to warehouse, sequence, and release inventory based on production milestones. That's where our distribution expertise creates real operational value."