Liberty Energy is an independent provider of hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. They focus on offering safe, efficient, and high-quality hydraulic fracturing and engineering services. Their goal is to provide frac design and execution with a real-data focus to optimize field development and improve production enhancement strategies for their clients.
Business Challenges
- ST9 Acquired by Liberty – Legacy application is unable to integrate with Liberty’s ERP Cloud.
- Legacy Application No Longer Working – Legacy application (QuickBooks) used at ST9 could not stay up with the growth.
- Data Control – Legacy system had little control over data and access.
- No Integration – Liberty has no visibility into processes, cost, inventory, etc. at ST9.
- Data Governance – ST9 and Liberty had different part numbers for the same item, including items manufactured for Liberty. Same supplier with different names in the two systems.
- Approvals – Approvals for purchase orders were outside the Liberty system.
- Manual Processes to Move Information – Many processes were handled manually like month-end to move costs and financial information from ST9 to Liberty or requests for products from Liberty to ST9.
- Visibility – No visibility to ST9-owned inventory stored at vendor sites or in transit in the system.
- Manually Calculate Assembly Costs – Tracked forgings/subassemblies separate from the assemblies they were installed on until the final assembly was completed. Manually figure out what went where to add up the costs for the final assembly and correct inventory for the forgings/subassemblies.
- ST9 First Manufacturing Plant for Liberty – Liberty’s system needed to be updated to support manufacturing.
Solution
- Moved ST9 to Liberty’s ERP Cloud System – No need for integrations, approvals are now in the system, and no manual processes to move data. Have control over roles and data access.
- Data Governance – Liberty moved to ST9 numbers, so only one part number per item will be used. Old Liberty part numbers flushed from the system as they are used up.
- Data Reconciliation – One supplier master. Peloton’s analytic skills were leveraged to match suppliers in the two systems.
- Conversions – Convert items, bill of materials, purchase orders, AP invoices, AR invoices, fixed assets, on-hand inventory, in-transit inventory, and inventory at suppliers.
- Implemented Manufacturing – Work orders are used to capture the material and labor costs and the system calculates the assembly cost. Forgings/subassemblies are issued to the work orders as they are used, providing a better and more transparent view of the costs of production.
- Scalable Design – By leveraging the integrated SCM platform, Peloton was able to provide a system design across modules that is fully scalable to meet the continual need for growth.
Impact
- Single Source of Truth – Liberty and ST9’s financial and operational data are in one system.
- Single Source of Approvals – Liberty and ST9 approvals are in one system.
- Inventory – Full visibility of inventory at ST9, vendors, and in transit.
- Timely and Accurate Costs – Costs are collected by the system during the production process instead of manually at the end. Freight captured as part of the item cost.
- Decision Making – Management has access to Liberty and ST9 data in one place to drive decision making.
- Standardized Processes – Purchase requisitions, purchase orders, AP invoices, and AR invoices are in the same system and standardized.
