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Flotek Industries, Inc. - EnterpriseOne Inventory Reconciliation
About the Client
Headquartered in Houston, Texas, Flotek Industries, Inc. (NYSE: FTK) provides world-class drilling and production products and services to the energy and mining industries. As a diversified global supplier, Flotek’s divisions include Energy Chemical Technologies, Drilling Technologies, Production Technologies, and Consumer and Industrial Technologies. The company was founded in 1985. Today, Flotek employs over 500 employees and has annual revenue in excess of $330M.
Challenges the Client Faced
Flotek uses JD Edwards EnterpriseOne for Financials and Supply Chain. When implementing JD Edwards five years ago, Flotek had several issues converting inventory data, which was complicated by data integrity issues prior to the conversion. After the conversion, Flotek was carrying a $500,000 monthly un-reconciled variance trying to balance the sub-ledger to the general ledger on inventory valued at $71 million. Furthermore, they were spending about 2 weeks each month trying to reconcile it. Flotek even tried writing custom programs to solve the issue, but with no success. Flotek eventually sought out third-party software to solve the problem. After viewing a webcast by GSI, Flotek identified RapidReconciler as a solution for their issues. GSI set up a proof of concept with one year of Flotek’s data, identifying several setup (AAI) and other issues, which accounted for much of the variance.
“After implementing RapidReconciler, inventory reconciliation issues were reduced significantly. Flotek’s un-reconciled inventory variance went from a $500,000 to less than $3,300, while the monthly reconciliation process was reduced from two weeks down to two days”, stated Rusty Breaux – Sr. Accountant – Fixed Assets/Inventory. In addition, Flotek implemented the In-Transit feature of RapidReconciler, which dramatically reduced the time to reconcile In-Transit as well as the associated variance. Breaux went on to say, “With a significant un-reconciled inventory balance, we needed a solution that would reduce the variance and speed up the reconciliation. GSI’s implementation of RapidReconciler was the perfect solution. GSI has been an invaluable partner helping us through this process and their continued support has been excellent. Today, Flotek uses RapidReconciler to reconcile 12 of their companies and we will be expanding to 15 companies.”
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