There are many benefits to the consolidation of lubricants, but here are a few that stand out:
Reduced Cost of Inventory
For warehouses that stock many types of lubricants, there is a cost attached to holding these high stock levels, especially when the lubricants will not be consumed as quickly. However, with a consolidated stock, these levels can deplete at a faster rate than the specialty one or two lubricants, which may be used occasionally by certain assets. This helps to reduce the overall holding cost of the stock.
Reduced Human Error
With lubricants from many different suppliers, it is very easy for someone to get confused and use the wrong lubricant in the wrong application. This can lead to unplanned downtime and a possible flush of the entire system, depending on the level of cross-contamination. However, with a consolidated stock, the risks associated with humans utilizing the wrong lubricant become minimized.
Reduced HSE Risks
When removing a drum of oil from storage, a forklift may be required (depending on the location). If there were different products from various suppliers, it may be difficult to access the ones needed or may require extra work to remove the additional drums from the other suppliers before the operators gain access to the lubricant they need. With a consolidated stock, it would be easier to access the lubricant needed, and there would be less risk associated with removing it from stock.
There are various types of handling procedures associated with the different lubricants. As such, more procedures will be involved for disposing and handling various oils. This can also increase the HSE risk if someone is not fully aware of how to handle specific lubricants. With a consolidated stock, the HSE personnel will not have as many procedures to be aware of when handling these lubricants.
Reduced Operational Costs
Personnel would no longer be required to handle all the invoicing and payments of several lubricant suppliers for the various brands. This will reduce the hours the accounting department spends on the necessary paperwork and bank transactions for several vendors. Additionally, warehouse personnel will not be tasked with receiving products several times a day from the various suppliers and producing the accompanying paperwork. This can reduce the overall operational costs.
There are many benefits to the consolidation of lubricants, especially in our facilities, but it begins with understanding if we are using them in the correct application or if we’re using an over-specified lubricant in a lower-tiered application. Auditing your facility will assist in making this process easier, as noted above. We all have our role to play in consolidating lubricants to ensure that we have a safer, more efficient plant.
References
ASQ. (2024, October 19). What are the Five S’s (5S) of Lean. Retrieved from American Society for Quality: https://asq.org/quality-resources/lean/five-s-tutorial