In­cor­rect lu­bri­ca­tion cost over $250,0001, one in five fleet com­pa­nies glob­ally ad­mit

The Daily News Egypt - - Events -

Com­pa­nies are miss­ing an op­por­tu­nity to sig­nif­i­cantly re­duce the cost per kilo­me­tre of their fleet, due to a lack of un­der­stand­ing of ve­hi­cle lu­bri­ca­tion, ac­cord­ing to a new study by Shell

More­over, the study find­ings in­di­cate that many com­pa­nies do not re­alise how their lu­bri­ca­tion pro­ce­dures can in­flu­ence crit­i­cal op­er­a­tional fac­tors. Ac­cord­ing to the find­ings, the trans­porta­tion in­dus­try in North Amer­ica alone could be miss­ing out on po­ten­tial sav­ings in ex­cess of $6.5 m, while for the UK’s fleet com­pa­nies the fig­ure could ex­ceed $11.4m.

De­fi­cien­cies in ve­hi­cle lu­bri­ca­tion are hav­ing a fi­nan­cial im­pact on fleet oper­a­tions, at a time when cost com­pet­i­tive­ness and ve­hi­cle re­li­a­bil­ity is a pri­or­ity. Fleet op­er­a­tors ad­mit that 54% of their ve­hi­cle break­downs or un­planned down­time in the last three years were likely due to their in­cor­rect se­lec­tion and man­age­ment of lu­bri­cants.

The re­sult­ing costs are sig­nif­i­cant,ac­cord­ing to the study,32% of par­tic­i­pants es­ti­mate that this un­planned down­time cost their busi­ness $100,000 or more, and 19% be­lieve the sum could have ex­ceeded $250,0004.

The in­ter­na­tional study of fleet and trans­port com­pa­nies across Asia, Europe and theAmer­i­cas com­mis­sioned by Shell Lu­bri­cants re­veals that 63% of fleet op­er­a­tors do not un­der­stand how ef­fec­tive ve­hi­cle lu­bri­ca­tion can in­flu­ence un­planned down­time and 53% do not un­der­stand how lu­bri­cants can help lower costs through im­proved fuel ef­fi­ciency.

“Fleet op­er­a­tors are un­der pres­sure to achieve high stan­dards of re­li­a­bil­ity, whilst at the same time min­imis­ing op­er­at­ing costs to stay com­pet­i­tive.Ve­hi­cle avail­abil­ity, main­te­nance costs and fuel ex­pen­di­ture all in­flu­ence the ‘cost per kilo­me­tre’ of the fleet” Said John Wal­ters, Shell Global Sec­tor Man­ager for Fleet

He added that Shell Lu­bri­cants has de­liv­ered over $21 mil­lion in sav­ings to fleet cus­tomers glob­ally over the last five years. Ex­plain­ing that they work closely with fleet cus­tomers of all sizes, all around the world, to help de­liver sig­nif­i­cant busi­ness value by prop­erly look­ing af­ter the lu­bri­ca­tion needs of their ve­hi­cles.

Fur­ther­more,the study un­cov­ered a num­ber of bar­ri­ers that mean busi­nesses are not well equipped to take ac­tion. 67% of com­pa­nies think they don’t con­duct staff train­ing on lu­bri­cants as reg­u­larly as they should, and only 33% have all the rec­om­mended pro­ce­dures in place to man­age lu­bri­cants ef­fec­tively.

Ad­di­tion­ally, only 52% of those sur­veyed re­gard prod­uct per­for­mance as an im­por­tant con­sid­er­a­tion when pur­chas­ing lu­bri­cants.

“When un­der pres­sure to lower main­te­nance costs fleet op­er­a­tors of­ten look to re­duce spend on lu­bri­cants, 52% of com­pa­nies sur­veyed wouldn’t ex­pect a higher qual­ity lubri­cant to help re­duce main­te­nance costs.How­ever,a lubri­cant that of­fers im­proved wear pro­tec­tion, longer oil drain in­ter­vals,and en­hanced fuel ef­fi­ciency has the po­ten­tial to de­liver sig­nif­i­cant cost sav­ings.” Wal­ters added.

Shell Lu­bri­cants has re­leased a whitepa­per to ad­dress some of these is­sues and show the tan­gi­ble busi­ness ben­e­fits that can be achieved through cor­rect se­lec­tion and man­age­ment of lu­bri­cants.

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