H&D Distributors, Inc.. Downhole Tool Seal Kits Case Study

by Kyle Silber

Every time a downhole tool is deployed, the seals must be replaced. Because downhole tools are used for a variety of tasks, in a variety of environments, each requires a unique combination of seals. In an industry where downtime is not tolerated, having the right seals for your tool immediately available is critical. The best way to guarantee the right seals are available is a seal kit, which packages all the seals a downhole tool needs, expediting replacement.

OEMs can choose to assemble these kits on their own, or they can outsource that work to a white-label seal kit provider. If they choose the right partner, this strategy can deliver significant cost savings and major increases in customer satisfaction. Here’s how H&D delivered both for one of the world’s largest OEMs of downhole tools.

What Happens When an OEM Can’t Fill the Demand for Its Seal Kits?

The OEM in question had built a reputation in the global oil and gas industry for providing quality tools and parts to specification, on time.

However, the company became a victim of its own success. With high demand for its seal kits, it struggled to find enough man-hours to assemble them and began the search for a white-label partner who could fulfill its customers’ aggressive, complex seal kit orders according to the high standards they had set as a company.

As noted above, because each downhole tool requires a unique bill of materials, managing seal inventory is a daunting task. A client with multiple tools might require one kit with eight standard seals and one custom seal, another with ten custom seals and one standard seal, and so on. The OEM needed a trusted partner they knew would get the customers’ orders right, every time.

Enter the Sealing Kit Solutions Providers

The OEM brought their challenge to H&D, asking us to provide them with a kitting solution that delivered:

Accuracy: Kits had to be built according to their bill of materials with quality products. Anything short of 100% accurate was considered unacceptable.
Aesthetics: High-quality packaging that attested to the high-quality parts inside was needed. If the packaging didn’t look professional, the end user might second-guess the quality of the components.
In-stock Inventory: Running out of a particular seal was not an option. It would be unforgivable if a seal kit was not available, holding up a drilling operation and incurring unnecessary, costly downtime.

Additionally, the labeling for each seal kit had to meet strict traceability requirements and had to be delivered in opaque, heat-sealed bags with custom labels detailing each seal name, description, and shelf life, along with installation instructions.

Fortunately, H&D had decades of experience creating sealing solutions for downhole tools manufacturers, which they drew on to design a full-service program for the OEM in question, including forecasting inventory demand and assembling and packaging each custom seal kit.

The OEM saw real value in this proactive, planned approach, which made it so they would only need periodic shipments of pre-assembled seal kits. Instead of the OEM performing last-minute assembly fire drills, H&D would provide them everything they needed up front and on a regular basis, so they confidently say to any customer, “Yes we have those seals for you, and we will ship them out today.”

The Benefits of Using a White-Label Seal Kit Partner

Backed by H&D, our OEM partner was able to focus its in-house team’s energies on core competencies and generating new business — instead of incurring costly overtime assembling seal kits on the fly.

Equipped with the confidence that their seal kits are available 100% of the time, look professional, and meet all regulatory requirements, the OEM’s salespeople are winning new customers. And their customers are never left without the exact seal kits they need, maximizing their uptime.

Plus, the downhole tool manufacturer is reaping significant direct cost savings from:

Reduced material handling
Reduced overtime and man-hours
Reduced inventory holding costs
Reduced shipping expenses

About H&D Distributors

For over 40 years, H&D Distributors has provided expert sealing solutions for OEM and MRO customers in various industries where productivity is key, including hydraulics, oil and gas, and semiconductor. Leveraging in-house engineering and testing expertise, exceptional customer service, and a global network of top sealing manufacturers, H&D's goal is to deliver solutions for its customers’ pressing sealing challenges expertly, accurately, and on time.

To learn more about H&D’s sealing solutions for the oil and gas industry, contact us.

About Kyle Silber

As an Account Manager at H&D Distributors, Kyle Silber works closely with H&D’s technical team to develop innovative sealing solutions for new applications and solve sealing challenges for OEM and MRO customers. Kyle takes pride in collaborating closely with customers to add value to the supply chain, reduce lead times, and lower costs.