In the interest of reducing purchasing costs and streamlining storage and handling, many organizations have substantially slashed the number of lubricant SKUs (stock keeping units) they use. They have also re-engineered the precision of their lubricant specification. There are many real and a couple of somewhat imaginary benefits to these consolidation initiatives. Let’s start with the real benefits.

These include:

Reducing stale inventory by directing more turnover (usage) across fewer lubricant products

Purging discontinued or hard-to-find lubricants from lubricant storerooms

Sole sourcing lubricants to a single distributor and perhaps brand to simplify the purchasing function and leverage volume buying (see figure 1)

Enhance usage convenience and lower risk of accidental cross-contamination (fewer drum pumps, transfer systems, filter carts, top-up containers, etc.)

Re-engineering and enhancing lubricant selection especially for machines utilizing lubricants that have drifted out of spec (perhaps as a result of several past consolidation attempts)

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