SEGMENT SPECIFIC, REFUSE
Petroleum costs are rising but Castrol helps one waste hauler achieve multi–million dollar savings in maintenance and lubrication costs.
| For a waste–hauling company trying to contain costs, optimizing drain intervals—through premium product selection and consistent fluid analysis—is adding dollars to its bottom line. Technicians now have more time to perform tasks other than oil changes and the company uses less oil and generates less waste oil. |
Reason to Believe, In His Own Words
At a 2007 supplier meeting, our largest waste and environmental services customer shared its company–wide cost containment objectives with us. We realized immediately that this presented both an opportunity and a challenge for us. Here was an opportunity to solidify our relationship as a valued supplier partner, validate our premium product offer and save this company some serious money. We took the challenge head on.
Our customer had several objectives they wanted to meet for the year, which included: offsetting escalating petroleum costs, optimizing product usage, dealing with technician shortages and being a steward for the environment. Castrol was able to make significant in–road with all these objectives. One example that illustrates this is in the area of hydraulic fluids.
We began with a site–by–site product usage review to identify savings opportunities, define correct consumption rates, align sites to proper product platform and recommend any corrective action needed. Through this intensive lube usage analysis, we were able to identify a potential for multi–million dollar cost savings that could be achieved with implementation of best practices and extended drains. Hydraulic fluid and system cleanliness is helping our customer double their current drain intervals. This cuts their lubricant usage and number of services in half. In addition to the obvious maintenance–related cost reduction from this action, qualified technicians are spending less time changing oil and more time doing equipment repairs and safety work. For a company battling technician shortage, this is a major achievement.
Our customer had several objectives they wanted to meet for the year, which included: offsetting escalating petroleum costs, optimizing product usage, dealing with technician shortages and being a steward for the environment. Castrol was able to make significant in–road with all these objectives. One example that illustrates this is in the area of hydraulic fluids.
We began with a site–by–site product usage review to identify savings opportunities, define correct consumption rates, align sites to proper product platform and recommend any corrective action needed. Through this intensive lube usage analysis, we were able to identify a potential for multi–million dollar cost savings that could be achieved with implementation of best practices and extended drains. Hydraulic fluid and system cleanliness is helping our customer double their current drain intervals. This cuts their lubricant usage and number of services in half. In addition to the obvious maintenance–related cost reduction from this action, qualified technicians are spending less time changing oil and more time doing equipment repairs and safety work. For a company battling technician shortage, this is a major achievement.
Hydraulic fluids are only one part of our overall cost containment plan for this customer. We tackled transmission fluids and engine oils and achieved great success in both of those areas as well. As their lubricants supplier, we represent about 1–2 percent of their annual spend, yet we were able to help them achieve a significantly higher percent of their cost reduction goal. That's what Castrol calls value–added.
Drew Nagle
National Accounts Manager
22 years with BP Lubricants (formerly Castrol Heavy Duty Lubricants) in the areas of field sales, technical services, OEM management and national accounts management. Served on the Association of Equipment Management Professionals (AEMP) Board of Directors for 9 years.
Drew Nagle
National Accounts Manager
22 years with BP Lubricants (formerly Castrol Heavy Duty Lubricants) in the areas of field sales, technical services, OEM management and national accounts management. Served on the Association of Equipment Management Professionals (AEMP) Board of Directors for 9 years.
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Segment Specific, Refuse
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