Summit Utilities PROJECT PROFILE Annual purchase order consolidation savings $146,512 Annual engineering review savings $278,040 Bill of materials reviewed annually 124 Natural gas inventory added $1.2 million Colorado, Maine, Missouri, Oklahoma and Arkansas For years, Summit Utilities’ natural gas subsidiaries operated with siloed supply chains. Summit Utilities owns and operates distribution and transmission pipelines in Colorado, Maine, Missouri, Oklahoma and Arkansas, so it was difficult to find a distributor who could deliver materials to all their locations. An opportunity to unite the supply chains arose when Summit Utilities hired a new Senior Procurement Manager who previously worked with Border States and knew the value of our services and solutions. We soon partnered with Summit Utilities to meet material needs across their entire footprint — including at a distribution center outside ours. THE SOLUTION We began streamlining the supply chain by analyzing Summit Utilities’ current inventory and usage data. Together, we created a stocking strategy to ensure the availability of critical materials and frequently used consumables. Since we already stocked pipe, valves and fittings at our Denver, Colorado, branch we began delivering to Summit Utilities’ Colorado storerooms immediately. At our Springfield, Missouri, branch, we expanded our yard by 32,000 square feet, invested in new equipment and added racking to accommodate 80 pallets of natural gas inventory. We also hired two additional full-time employee-owners. These improvements allowed us to fulfill Summit Utilities’ high volume of orders more efficiently. Within 90 days, we started delivering to storerooms in Fort Smith, Arkansas, and Camdenton, Missouri, as well as job sites throughout both states. While Border States does not have branches in the Northeast, we found ways to reduce shipping costs and maximize delivery efficiency to serve Summit Utilities’ Maine locations. THE RESULTS By partnering with Border States, Summit Utilities was able to consolidate purchase orders, invoices and deliveries. These efficiencies saved Summit Utilities more than $146,000 in 2020 alone. In addition to a dedicated Customer Service Representative, Summit Utilities benefits from our engineering expertise. Our team reviews every bill of material to confirm it aligns with current standards and piping specifications. Key benefits of the partnership include: Collaboration with Border States on stocking strategy Transparent pricing structure Custom collaboration website Customer support center Job site services — project management, job trailers and job site containers Summit Utilities’ supply chain is running like a well-oiled machine. We collaborate monthly to review and refine our strategy to ensure we continue to provide service excellence across their entire footprint.