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Maybe you haven’t heard. It’s no longer just about the lubricant, its performance, quality or price.
The days of awarding a supply contract to the lowest bidder which happens to be a national brand is
not a forgone conclusion. Much more is at stake and many factors impinge on this important decision.
Indeed things have changed in the world of lubrication - one could say the eld is starting to reinvent
itself.
Today’s lubricant customer is more sophisticated and demanding. The watchwords are “world-class”
and “core competency”. It has been said that if you want world-class reliability you need world-class
lubrication. To be world-class at lubrication means you must have world-class . . .
lubrication technicians
procedures and practices
oil analysis and program metrics
lubrication supply
Though typically treated as a commodity by many, the lubricant is a vital component of the machine.
For many organizations, the quality of lubrication is the single greatest factor that in uences
machinery reliability and productivity. Sure, without any lubrication, the machine won’t run. But the
quality of lubrication also affects machine reliability and e cient operation in less obvious ways.
Many of today’s lubricant suppliers offer an a la carte program of goods and services. Some offer full
service, while others serve niche-speci c markets, each with varying value propositions. There are
many differentiating factors among lubricant suppliers. For this reason, matching the product/services
mix to real applications and business needs is the challenge at hand.
The user organization must decide whether it wants to strictly buy lubricants or if it wants to purchase
lubrication with services bundled in. If your intention is to just buy lubricants, you could be paying extra
for unwanted services like oil analysis and technical support. If your desire is to buy lubrication, be
sure you’ve optimized the content of your value package . . . taking no more or no less than you want.
Often lubrication services go unclaimed due to a lack of execution by the supplier or lack of
understanding by the customer. Sometimes the customer is simply unaware of the availability or
importance of strategic program elements. With that said, perhaps it’s time to revisit the many
questions and issues that surround the lubricant supply decision. Consider the following:
Application Match
Base Oil
Does the machine application, including thermal, energy conserving, and service life issues, demand
the use of speci c base oils, for example: synthetic, hydrocracked or mineral (Group I, II)? How about
biodegradability, toxicity and food-grade requirements? Is it compatible with machine nishes,
coatings, seals, etc.?
Viscosity
Do the suppliers’ products come in a suitable range of viscosities for each grade?
Additives
Are additives compatible with machine metallurgy, elastomers, coatings, seals and operating
environment?
Custom Formulations
Will the supplier assist with custom formulations where catalog products won’t serve application
requirements?
Contamination
Is the lubricant (base oil and additives) compatible with close-proximity contaminants such as
caustics, nuclear radiation, ammonia, refrigerants, natural gas, H2S, etc.?
Compliance
Do lubricants meet industry, government, OEM, requirements/regulations - including any outlined by
NLGI, API, GM LS-2, ASTM, GE, US Steel, SAE, ISO, NRA, AGMA and IP?tion, ammonia, refrigerants,
natural gas, H2S, etc.?
Reputation
Is the supplier or brand known for performance-formulated lubricants or price-formulated lubricants?
How does this match the needs of the customer?
Filterability
Can the lubricants be ltered to the required levels without loss or damage of critical additives?
Inspection Tests
What inspection tests are always performed on each batch of oil? How long are retains kept? Is
inspection test data made available to customers on request?
Storage Stability
Does the supplier publish speci c information on the storage life (shelf life) of each lubricant product
under typical and extreme storage conditions?
Compatibility Testing
Will the supplier provide compatibility testing for lubricants (including grease thickeners) that will be
part of a change-out from another brand (say associated with unavoidable mixing)? What tests will be
conducted as a part of the compatibility study?
Audit/Survey Services
Will the supplier provide occasional services to match lubricants to machine applications and to
consolidate the number of products on-site? If so, can the cost of this service be unbundled to permit
an independent service provider to conduct these audits/surveys if desired?
Training Services
Will training services be provided and at what cost, if any? Can this cost be unbundled from the pricing
structure to allow the client to receive training from independent organizations if desired?
Oil Reclamation
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Does the supplier offer oil reclamation services or permit these services to be provided by an outside
rm without loss of warranty protection?
Additive Reconstruction
Will the lubricant supplier provide guidance and additive concentrates for large-volume lubricants
where there is a need for in-service additive treatments (turbine oils, paper machine oils, etc.)? Which
additives does the supplier permit to be reconstructed?
Disposal Services
If provided, what is included with the service?
Second-Tier Suppliers
Is the primary supplier able (and willing if requested) to manage the process of delivering specialty
products (water glycols, phosphate esters, PTFE high-temperature grease, etc.) formulated by other
lubricant suppliers?
Distributors
What will be the role of distributors, if any? How is the quality of the lubricant protected by the
handling and repackaging of lubricants by distributors? How are distributors quali ed and certi ed by
the supplier-formulator? How are the distributors’ practices documented?
Warranty
What assurance is provided relating to formulation quality or performance defects? Does it relate to
just the oil? How about damage caused to machinery? What conditions can void the warranty? How
are claims processed and decided?
Reputation
What is the supplier’s general reputation for delivering quality service and support?
Is this provided and at what cost? What are the features and functionality of the software? Are training
and support included? Will the software support competitive lubricants? If you change to another
lubricant supplier, do you loose access to your database and software support?
Product Line
Capacity and Location of Blending Plants
Does the capacity and location of blending plants suit the customer’s needs in terms of e cient and
adequate supply? How does the distance affect transportation costs?
Distributor Warehousing
Which products are shipped directly from the blending plants? Which are warehoused by the
distributor?
Global Supply
Is there a need for international supply, blending plants, warehousing or technical support?
OEM Approvals
What lube products have received “approvals” from which OEMs?
Industry Specialization
Do the supplier and the product range have an industry specialization? How well does it match the
customer?
Bulk Supply
How is the risk associated with mixing of lubricants and cross-contamination between loads
controlled? Are dedicated tank trucks provided for use with “lubricants only”? Is there a speci c on-
load, off-load sequence to protect against the risk of highly additized products (for example, motor oil)
being followed by (and potentially mixed with) products with low additive treatments (for example,
turbine oil). Are lubricants discharged (off-loaded) through lters? If so, what is the beta rating of
these lters? What are the service guidelines relating to tank ushing, breathers and hoses?
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One-shot Containers
Are these available for different lubricant products? What is the cleanliness of these containers? How
are they labeled?
Dates on Labels
Are packaged grease and oil products date-labeled by batch? Is a legible, standard dating system
provided?
Sampling
What sampling frequency is included in the contract, or annual volume of samples? If sample bottles
are provided, what size and material are they made of? Is the cleanliness of the bottles controlled and
veri ed using ISO 3722 guidelines?
Lab
If an independent lab is used, which lab is it? Can alternate or multiple labs be selected? What is the
reputation of this lab?
Unbundling
Can the cost of the oil analysis be unbundled from the lubricant supply contract if desired?
Reports
What information is provided on oil analysis reports? Are limits and alarms shown on the reports?
How about new oil baseline data?
Quality
Is the lab certi ed by ISO 17025, ISO 9002 or 10 CFT 50 (nuclear quali ed)? Does it participate in the
ASTM Cross-Check program, or some other quality assurance program for used and new lubricants?
Inspection
Does the lubricant supplier make routine quality inspections of the lab? How often? How about blind
sample testing?
Turnaround Time
What is the average and guaranteed turnaround time of the samples from receipt by the lab?
Competitive Lubricants
Will the lab offer oil analysis for competitive lubricants (not supplied by the primary lubricant supplier)
for an additional charge?
Retains
How long is untested oil retained by the lab?
Data
Is the oil analysis data given to sales reps and eld engineers?
Now, a word about price. Many people have heard of “life-cycle costing” when it comes to lubrication
and related services. Simply stated, this important principle directs attention to the total cost of
ownership as if the lubricant were a durable. The initial cost of a gallon of oil or pound of grease is not
regarded as the main factor. Instead, other things that occur over time gain greater importance, such
as how will the lubricants and program of services affect the following:
The next time you award a supply contract for lubrication, take the time to actually determine your
company’s needs. Begin by polling the stakeholders in the organization and close technical advisors.
Create a list of factors, such as these listed here, that are potentially important and have the buying
team weigh these factors in relation to the goals of the organization. The process may reveal that you
have only been buying lubricants, when what you really wanted was “lubrication”. Conversely, the
process may reveal that you have been paying for services that you don’t value, or would prefer to buy
elsewhere.
When was the last time your company reviewed its lubricant supply relationship? Is there room for
improvement to move your lubrication program steps closer to world-class? The savings and bene ts
may prove very rewarding.
3. Through the leadership of a knowledgeable and objective facilitator, brainstorm to identify what
criteria are important to the organization.
4. Review the criteria and combine them into the smallest number of factors without compromising
content. Refrain from comment about the value or importance of any criteria.
5. Using a modi ed Delphi technique, have each stakeholder secretly rate the condensed criteria list
using a value scale. No discussion about the value or importance of the criteria should occur. The
secret ballot helps to limit group bias.
6. Have the facilitator gather the rating information and present the mean, median and range for each
criterion to the group. Again, no discussion about the results is allowed.
7. Team members are then given a chance to re-rate the criteria using secret ballots.
8. The results are again presented to the group. Usually, the distribution tightens at this point.
10. Accept the group’s decision. Proceed with the structured evaluation of lubricant suppliers with
con dence. The process is carried out by interviewing candidate supplier representatives, studying
their proposals in detail and talking to references. Score the information that is gained for each
supplier using the system of weighted value factors.