{"id":48946,"date":"2019-06-20T14:46:32","date_gmt":"2019-06-20T18:46:32","guid":{"rendered":"http:\/\/cpifluideng.com\/?p=48946"},"modified":"2019-07-17T15:42:00","modified_gmt":"2019-07-17T19:42:00","slug":"5-areas-of-consideration-when-evaluating-a-lubricant-supplier","status":"publish","type":"post","link":"https:\/\/www.cpifluideng.com\/5-areas-of-consideration-when-evaluating-a-lubricant-supplier\/","title":{"rendered":"5 Areas of Consideration When Evaluating a Lubricant Supplier"},"content":{"rendered":"<p>[et_pb_section bb_built=&#8221;1&#8243; _builder_version=&#8221;3.24.1&#8243; custom_margin=&#8221;-22px||&#8221;][et_pb_row custom_margin=&#8221;-55px||&#8221; _builder_version=&#8221;3.24.1&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding__hover=&#8221;|||&#8221; custom_padding=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;3.26&#8243; text_text_shadow_horizontal_length=&#8221;text_text_shadow_style,%91object Object%93&#8243; text_text_shadow_horizontal_length_tablet=&#8221;0px&#8221; text_text_shadow_vertical_length=&#8221;text_text_shadow_style,%91object Object%93&#8243; text_text_shadow_vertical_length_tablet=&#8221;0px&#8221; text_text_shadow_blur_strength=&#8221;text_text_shadow_style,%91object Object%93&#8243; text_text_shadow_blur_strength_tablet=&#8221;1px&#8221; link_text_shadow_horizontal_length=&#8221;link_text_shadow_style,%91object Object%93&#8243; link_text_shadow_horizontal_length_tablet=&#8221;0px&#8221; link_text_shadow_vertical_length=&#8221;link_text_shadow_style,%91object Object%93&#8243; link_text_shadow_vertical_length_tablet=&#8221;0px&#8221; link_text_shadow_blur_strength=&#8221;link_text_shadow_style,%91object Object%93&#8243; link_text_shadow_blur_strength_tablet=&#8221;1px&#8221; ul_text_shadow_horizontal_length=&#8221;ul_text_shadow_style,%91object Object%93&#8243; ul_text_shadow_horizontal_length_tablet=&#8221;0px&#8221; 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header_2_text_shadow_blur_strength_tablet=&#8221;1px&#8221; header_3_text_shadow_horizontal_length=&#8221;header_3_text_shadow_style,%91object Object%93&#8243; header_3_text_shadow_horizontal_length_tablet=&#8221;0px&#8221; header_3_text_shadow_vertical_length=&#8221;header_3_text_shadow_style,%91object Object%93&#8243; header_3_text_shadow_vertical_length_tablet=&#8221;0px&#8221; header_3_text_shadow_blur_strength=&#8221;header_3_text_shadow_style,%91object Object%93&#8243; header_3_text_shadow_blur_strength_tablet=&#8221;1px&#8221; header_4_text_shadow_horizontal_length=&#8221;header_4_text_shadow_style,%91object Object%93&#8243; header_4_text_shadow_horizontal_length_tablet=&#8221;0px&#8221; header_4_text_shadow_vertical_length=&#8221;header_4_text_shadow_style,%91object Object%93&#8243; header_4_text_shadow_vertical_length_tablet=&#8221;0px&#8221; header_4_text_shadow_blur_strength=&#8221;header_4_text_shadow_style,%91object Object%93&#8243; header_4_text_shadow_blur_strength_tablet=&#8221;1px&#8221; header_5_text_shadow_horizontal_length=&#8221;header_5_text_shadow_style,%91object Object%93&#8243; header_5_text_shadow_horizontal_length_tablet=&#8221;0px&#8221; header_5_text_shadow_vertical_length=&#8221;header_5_text_shadow_style,%91object Object%93&#8243; header_5_text_shadow_vertical_length_tablet=&#8221;0px&#8221; header_5_text_shadow_blur_strength=&#8221;header_5_text_shadow_style,%91object Object%93&#8243; header_5_text_shadow_blur_strength_tablet=&#8221;1px&#8221; header_6_text_shadow_horizontal_length=&#8221;header_6_text_shadow_style,%91object Object%93&#8243; header_6_text_shadow_horizontal_length_tablet=&#8221;0px&#8221; header_6_text_shadow_vertical_length=&#8221;header_6_text_shadow_style,%91object Object%93&#8243; header_6_text_shadow_vertical_length_tablet=&#8221;0px&#8221; header_6_text_shadow_blur_strength=&#8221;header_6_text_shadow_style,%91object Object%93&#8243; header_6_text_shadow_blur_strength_tablet=&#8221;1px&#8221; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221; z_index_tablet=&#8221;500&#8243;]<\/p>\n<p>Selecting the right supplier capable of meeting unique business demands and application needs is a crucial process for any company.\u00a0 The types of suppliers today span a large spectrum of business models.\u00a0 Some offer product only, while others bundle in additional services and capabilities.\u00a0 Understanding exactly what products and services a business requires is critical to the supplier selection process.<\/p>\n<p>The same philosophy can be used when selecting the ideal lubricant supplier.\u00a0 Factors such as price, services offered, reliability, quality, and technical expertise \u2013 among others \u2013 must be understood by key stakeholders at each company.\u00a0 Those factors must be prioritized to fit the needs of the business.\u00a0 While there are many criteria to consider, most can be narrowed down to a few major categories for evaluation purposes.<\/p>\n<p>There are five key areas (categories) of criteria to understand and evaluate during the lubricant supplier selection process.\u00a0 The five areas to focus on are: <strong>Application Expertise<\/strong>, <strong>Diverse Chemistry<\/strong>, <strong>Supply Reliance<\/strong>, <strong>Risk Abatement<\/strong>, and <strong>Ability to Serve<\/strong>.\u00a0 Each area addresses selection criteria that should be fully understood and agreed upon by those key stakeholders at each company.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Application Expertise<\/strong><\/p>\n<p>Every application has its own criteria to carefully consider, and therefore the demands placed on the lubricant are just as unique.\u00a0 A hydraulic fluid requires physical properties and performance specs different than that of a compressor lubricant used in a refrigeration application.\u00a0 Intimate knowledge of the system itself \u2013 the type of engine or compressor and system components, the working conditions of the system, metallurgy &amp; tribology aspects, and other important details \u2013 is critical to recommending the proper lubricant.<\/p>\n<p>Many companies require numerous lubricant recommendations for different applications\/processes spanning several geographical regions, or even concentrated at one large manufacturing site.\u00a0 They should consider seeking out a lubricant supplier with proven knowledge and expertise across a number of industries and market segments.\u00a0 Some applications are so unique they are served by lubricant suppliers with niche expertise in that particular application.\u00a0 In cases such as these, partnering with the most experienced provider can help to ensure the best possible lubricant recommendations.<\/p>\n<p>However, having one \u201csingle source\u201d provider of lubricants for multiple applications is ideal and carries many benefits.\u00a0 Reducing the number of vendors a company has to interact with can help minimize complexity.\u00a0 There may also be cost benefits offered by lubricant suppliers when multiple products and\/or services are contracted.\u00a0 Additionally, one single-source provider may be able to identify other opportunities across the site or throughout regional locations for better lubricant recommendations.\u00a0 This could further minimize complexity, realize cost benefits, increase efficiency, or all of the above.<\/p>\n<p>How challenging is the application?\u00a0 Are the working conditions severe?\u00a0 Is the system working in operating conditions involving extreme temperature ranges, challenging environmental aspects, or any other number of factors?\u00a0 If the answer is \u2018yes\u2019 then contracting a lubricant supplier qualified to solve those challenges is necessary.\u00a0 Not all suppliers are created equal.\u00a0 Many good suppliers do not have the technical expertise, problem-solving acumen, or leveraged resources capable of tackling complex application challenges.\u00a0 When applications are known to have recurring challenges or harsh operating conditions, supplier evaluation must include the capabilities to solve these unique problems.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Diverse Chemistry<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-48909 size-medium lazyload\" data-src=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-300x199.jpg\" alt=\"Lubricant Supplier Criteria - Access to Diverse Chemistry\" width=\"300\" height=\"199\" data-srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-300x199.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-768x510.jpg 768w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-1024x680.jpg 1024w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-1080x717.jpg 1080w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/199;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-48909 size-medium\" src=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-300x199.jpg\" alt=\"Lubricant Supplier Criteria - Access to Diverse Chemistry\" width=\"300\" height=\"199\" srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-300x199.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-768x510.jpg 768w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-1024x680.jpg 1024w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Diverse-Chemistry-1080x717.jpg 1080w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript>A considerable number of compressor systems and operating equipment components are capable of using different base oil\/additive chemistries to meet the requirements of the application.\u00a0 Depending on the <em>exact<\/em> requirements and operating conditions, several formulations can \u201cget the job done\u201d.\u00a0 The differences lie in the expected performance (driven by base oil used) and additional features provided (by utilizing additives).\u00a0 For example, some low-cost mineral oils are good options for certain applications, whereas semi-synthetic lubricants may boast longer life with less potential for oil loss.\u00a0 A supplier with a diverse chemistry portfolio can make a holistic recommendation based on chemistry, cost, and performance to offer the <em>best<\/em> solution for the application.<\/p>\n<p>Many suppliers leverage strong technical resources supported by highly skilled employees, state-of-the-art equipment and facilities dedicated to research and testing.\u00a0 Suppliers with strong technical support coupled with a diverse chemistry toolbox can offer several advantages:<\/p>\n<ul>\n<li><strong>Formulation expertise<\/strong> to design lubricant solutions with properties best suited to minimize known application challenges and enhance performance. Companies can choose the best option for their needs versus working with a supplier only capable of offering limited solutions.<\/li>\n<li><strong>Oil analysis services<\/strong> to help monitor performance and identify issues by understanding trends that are identified through consistent oil sampling programs. Some benefits of regular oil analysis (when applicable) include longer life for equipment, reduced production downtime and decreased maintenance\/repair expenses.<\/li>\n<li><strong>Lubricant options<\/strong> offered across <em>multiple<\/em> applications for one company, as well as tiered options offered for <em>one specific<\/em> Many even offer product variations in line with the \u201cgood\u201d \u201cbetter\u201d \u201cbest\u201d philosophy to allow choices that balance performance, cost, and availability.<\/li>\n<\/ul>\n<p>Companies must determine for themselves how important it is to select a lubricant supplier with a diverse chemistry toolbox.\u00a0 Some may not require a supplier that offers multiple solutions.\u00a0 A company may simply desire reliable supply of a suitable lubricant option for their application at an acceptable price point.\u00a0 The key takeaway is this: Understand exactly what capabilities a lubricant supplier must have with respect to offering diverse chemistry options and formulation expertise.\u00a0 Every company is unique and must match a supplier\u2019s strengths with their most critical lubrication needs.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Supply Reliance<\/strong><\/p>\n<p>Supplier selection must include evaluating the strength of their supply chain to effectively provide goods and services.\u00a0 Solid supply chain management can result in competitive advantages passed from the supplier on to the customer.\u00a0 Conversely, poor management of supply chain can hinder a company\u2019s ability to compete or much worse.\u00a0 Channel partners, such as lubricant distributors, may not be able to meet end-use customer demands if their suppliers falter.\u00a0 Supply interruptions can cause ripple effects that result in additional downtime, leading to lost production, culminating in decreased revenue opportunities.<\/p>\n<p>Larger companies, such as original equipment manufacturers (OEMs), require significant volumes of lubricant supply to maintain production across their manufacturing facilities.\u00a0 They should research and investigate how potential suppliers leverage their available supply of base oils, additives and other key components to lubricant manufacturing.\u00a0 Identifying potential risks such as shortages is crucial to avoid future delays or shut-downs in their production schedules.\u00a0 Lost production can be costly to OEMs \u2013 in some extreme cases it could result in losing hundreds of thousands of dollars a day.\u00a0 Of course, there is a limit as to how much a lubricant supplier is willing to discuss their strategy, as much of their contractual agreements are sensitive and\/or protected.\u00a0 However, a broader view of their supply capabilities, in addition to volume assurances, need to be understood and agreed upon by both parties.<\/p>\n<p>Companies that conduct business on a global scale must also consider the size and scope of their supplier\u2019s geographic supply chain footprint.\u00a0 Those operating on a smaller regional scale (such as the East Coast of the United States) may <em>not<\/em> be as concerned if their supplier has manufacturing and warehouse facilities in North America, France and China.\u00a0 Securing stable supply from a distribution channel somewhere in say, Indiana or Pennsylvania, is more of a concern for them.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-48914 size-medium lazyload\" data-src=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-300x169.jpg\" alt=\"Lubricant Supplier Criteria - Global Reach and Supply Reliance\" width=\"300\" height=\"169\" data-srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-300x169.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-768x431.jpg 768w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-1024x575.jpg 1024w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-1080x607.jpg 1080w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/169;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-48914 size-medium\" src=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-300x169.jpg\" alt=\"Lubricant Supplier Criteria - Global Reach and Supply Reliance\" width=\"300\" height=\"169\" srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-300x169.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-768x431.jpg 768w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-1024x575.jpg 1024w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/World-Map-With-Logistic-Network-1080x607.jpg 1080w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript>Logistic And Transport Concept In Front[\/caption]On the other hand, those organizations conducting global operations <em>would<\/em> be concerned whether or not a supplier had strategic manufacturing, blending, and warehouse locations in the Americas, EMEA, Asia Pacific and elsewhere around the globe.\u00a0 A straightforward benefit of a globally leveraged supplier includes product(s) available at multiple locations to satisfy customer demands.\u00a0 There are other benefits to consider that could have significant financial and operational impacts.\u00a0 These can influence a company\u2019s ability to compete in certain markets with the right products at the right price point.\u00a0 Margins are affected and therefore profitability as well.<\/p>\n<p>Some of the benefits of working with a supplier who has operations strategically located around the world are: lucrative shipping options, local\/regional\/national tax advantages, and the potential to reduce tariffs.\u00a0 Lubricant customers need reliable supply which, in part, relies on accurate lead times to get shipments to their door.\u00a0 Partnering with a supplier who has a global operations footprint provides options for getting product to customers in different regions in a timely manner.\u00a0 Some smaller lubricant suppliers, or those without a global supply chain, may not be able to meet forecasted demand in the desired timeframe.\u00a0 Understanding how a supplier leverages their network is an important evaluation metric for companies to consider.<\/p>\n<p>The costs associated with shipping products from one country or nation to another vary \u2013 depending on a number of factors.\u00a0 Some costs are reasonable, while others can put companies at a severe disadvantage.\u00a0 If they lack the financial resources or scale to absorb those costs, their margins may be impacted significantly.\u00a0 Taxes may be applied to goods entering a nation, a region, or even a local municipality.\u00a0 Tariffs in place because of geo-political relations between nations (ex: China and the U.S.) can have serious affects on global commerce.\u00a0 A supplier with strategic locations may be able to alleviate some of these extra costs by taking advantage of beneficial trade agreements or by utilizing local supply opportunities to avoid tax implications.\u00a0 In summary, supply reliance must be evaluated carefully to determine if a supplier\u2019s capabilities meet the needs of the company.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Risk Abatement<\/strong><\/p>\n<p>Eliminating risk and assuring product quality are certainly near the top of the list when evaluating potential lubricant suppliers.\u00a0 End users need to ensure the quality of the lubricant they are using in their compressor system or industrial machinery.\u00a0 Poor quality lubricants can lead to system issues up to and including complete failure of the compressor or other components.\u00a0 Distributors or other channel partners run the risk of damaged reputation or worse \u2013 legal battles over product failures or voided warranties \u2013 if they provide lubricants of poor quality to their customers.\u00a0 Equipment manufacturers and packagers demand quality lubricants for many of the same reasons as distributors.\u00a0 They also run the risk of damaged reputation, product recalls, and legal battles over warranty claims.<\/p>\n<p>The use of lubricants that have been produced in facilities adhering to global industry standards and tested for quality (subject to third party audits), is essential to risk abatement.\u00a0 Meeting the requirements of numerous certifications, registrations, and standardized practices is mandatory for lubricant suppliers.\u00a0 These requirements fall largely in the areas of chemical responsibility (such as REACH or Responsible Care\u00ae), manufacturing standards (such as ISO certifications), health and safety standards (such as GHS classifications or OSHA laws for workers).\u00a0 Other important certifications such as NSF, Halal, and Kosher are necessary when the lubricants are being used in food and beverage processing facilities.<\/p>\n<p><strong>Private Label Risk Abatement<\/strong><\/p>\n<p>Private labeling is a common practice in the manufacturing and distribution of goods &amp; services.\u00a0 The idea is simple \u2013 companies see additional revenue opportunities from selling goods &amp; services under their brand \u2013 but they lack the necessary expertise to do so themselves.\u00a0 Private labeling is very common in the compressor lubricant and industrial fluids manufacturing industry.\u00a0 The required resources of human talent, specialized technology, and state-of-the-art equipment are not easily replicated.<\/p>\n<p>Private label (PL) fluids are prevalent throughout the value chain as both manufacturers and a variety of distribution channel partners offer up someone else\u2019s chemistry in a package branded with their colors and their logo.\u00a0 Considering all the benefits private labeling offers, one of the most attractive is that (in most cases) the registrations and certifications (such as NSF H1 for example) pass through to the private label products.\u00a0 Companies in the supplier selection process considering offering their own lubricants should carefully evaluate the private labeling capabilities of the supplier.\u00a0 Questions such as, \u201c<em>Are your product certifications and registrations current?<\/em>\u201d and \u201c<em>Will certifications such as NSF pass through to the private label products?<\/em>\u201d are necessary to understand exactly what they are getting from the supplier.\u00a0 As beneficial as PL products can be to adding revenue streams, failing to check all the boxes on a supplier can have negative unintended consequences.<\/p>\n<p>In summary, risk abatement can be challenging to plan for and to execute, but with proper supplier evaluation it can be managed effectively.\u00a0 Companies need to ensure their potential supplier is following all current standards, such as those established by ISO.\u00a0 These standards, which are quite common in manufacturing, are aimed at ensuring goods and services are safe, reliable and of good quality.\u00a0 As mentioned, review of all product\/service registrations and certifications for accuracy is recommended.\u00a0 Making sure all best practices are being followed before contracting a supplier can avoid \u201csurprises\u201d down the road.\u00a0 Those \u201csurprises\u201d can be costly and have long-lasting negative effects to a company\u2019s reputation.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Ability to Serve<\/strong><\/p>\n<p>Evaluating a supplier\u2019s \u201cAbility to Serve\u201d borrows a few of the concepts from the previous areas of evaluation yet maintains its own unique criteria at the same time.\u00a0 The concept of a supplier\u2019s <em>ability to serve<\/em> can be summarized in the following question: \u201c<em>How capable is the supplier to serve the needs of a particular company?<\/em>\u201d.\u00a0 Depending on the size, scope, diversity and unique needs of a given company that answer could vary.\u00a0 In general, the following points should be addressed when evaluating a potential supplier\u2019s ability to serve.<\/p>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-48908 size-medium lazyload\" data-src=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-300x81.jpg\" alt=\"Lubricant Supplier Criteria - Ability to Serve with a Spectrum of Services\" width=\"300\" height=\"81\" data-srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-300x81.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-768x206.jpg 768w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-1024x275.jpg 1024w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-1080x290.jpg 1080w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/81;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-48908 size-medium\" src=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-300x81.jpg\" alt=\"Lubricant Supplier Criteria - Ability to Serve with a Spectrum of Services\" width=\"300\" height=\"81\" srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-300x81.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-768x206.jpg 768w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-1024x275.jpg 1024w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/CPI-Spectrum-of-Lubricant-Services-1080x290.jpg 1080w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript>Breadth &amp; Depth of Products and Services Offered<br \/><\/strong>Questions to consider: <em>Does my company need the lubricant only?\u00a0 Is my company considering a private label brand to sell?\u00a0 How much complexity does my company need managed?<\/em><\/p>\n<p>Lubricant suppliers are quite diverse in the number of products and services they offer.\u00a0 Some only offer the product itself packaged under their brand.\u00a0 On the other hand, some suppliers offer the full spectrum of lubricant management services including formulation, manufacturing, packaging variations, marketing assistance, private label services, distribution, and oil monitoring (testing) services.\u00a0 The needs of a company may change over time.\u00a0 Select a supplier that can serve current needs and support expansion efforts in the future.<\/p>\n<p><strong>Level of Technical Expertise Required<\/strong><\/p>\n<p>Questions to consider: <em>How much technical support does my company need?\u00a0 How complex are my company\u2019s applications?\u00a0 Do they require customized recommendations or are they straightforward in nature?\u00a0 Will we need ongoing collaboration and\/or training?<\/em><\/p>\n<p>Determining the level of technical support a company needs is a very important factor in the supplier selection process.\u00a0 For example, some companies only need low-technology lubricants (think mineral oil-based options) to fill a compressor and keep it operational.\u00a0 However, in applications such as hydrocarbon gas processing, the need for customized lubricant recommendations based on challenging operating conditions is required.\u00a0 The more complex an application or operating environment, the higher the likelihood of problems arising.\u00a0 Competent lubricant support can provide faster resolution to problems occurring in the field and avoid costly delays or equipment failures.\u00a0 In addition, need for <em>local<\/em> technical support versus <em>remote consultation<\/em> is a huge consideration, depending on the individual needs of an organization.<\/p>\n<p>Lubricant training \u2013 whether it\u2019s basic fundamentals or advanced diagnostic methodology \u2013 is not available from all lubricant suppliers.\u00a0 Channel partners, such as distributors, benefit tremendously from lubricant training to educate their salesforce and serve their customer base more effectively.\u00a0 It can be a significant competitive advantage.\u00a0 Careful evaluation of a potential supplier\u2019s training resources should be discussed and considered depending on the needs of the company.\u00a0 In this information-rich digital environment, the ability to provide the right recommendations and advice to customers is crucial due to the vast amount of misleading or one-sided content found online.<\/p>\n<p><strong>Organizational Size &amp; Impact<\/strong><\/p>\n<p>Questions to consider: <em>\u00a0\u00a0How important is the global reach of my supplier?\u00a0 What level of collaboration does my company need to develop new technologies?\u00a0 Is the supplier built for the long-haul?<\/em><\/p>\n<p>In the <em>Supply Reliance<\/em> area of evaluation discussed earlier, the importance of determining the global reach of the supplier is necessary to match a company\u2019s needs to the products and services provided.\u00a0 Companies serving customers in one singular country have much different requirements than those operating on a global scale.\u00a0 Many factors including supply chain, regulatory requirements, profitability, and technical support need to be considered.\u00a0 Again, current growth goals must be weighed against future growth aspirations to ensure the supplier selection supports all present and future initiatives.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-48912 alignright size-medium lazyload\" data-src=\"https:\/\/cpifluideng.com\/wp-content\/uploads\/2019\/06\/Law-of-Diffusion-of-Innovation-300x217.jpg\" alt=\"\" width=\"300\" height=\"217\" data-srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Law-of-Diffusion-of-Innovation-300x217.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Law-of-Diffusion-of-Innovation.jpg 643w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/217;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-48912 alignright size-medium\" src=\"https:\/\/cpifluideng.com\/wp-content\/uploads\/2019\/06\/Law-of-Diffusion-of-Innovation-300x217.jpg\" alt=\"\" width=\"300\" height=\"217\" srcset=\"https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Law-of-Diffusion-of-Innovation-300x217.jpg 300w, https:\/\/www.cpifluideng.com\/wp-content\/uploads\/2019\/06\/Law-of-Diffusion-of-Innovation.jpg 643w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript>According to the <em>Law of Diffusion of Innovation<\/em>, some companies will be at the forefront of innovating or adopting new technology and some will lag far behind.\u00a0 The middle majority adopt the technology at differing rates.\u00a0 Companies with a purpose to innovate, such as OEMs focusing on digital IoT technologies, may value lubricant suppliers who value the same philosophies.\u00a0 Identifying suppliers who have established industry connections and are pursuing new platforms of technology may play an important role in the supplier selection process.<\/p>\n<p>Many of the suppliers who favor innovation have established relationships with key industry stakeholders.\u00a0 For example, in the refrigeration industry, ties to groups such as ASHRAE provide instrumental connections to OEMs and refrigerant gas suppliers to evaluate future industry demand and collaborate to develop new solutions to allow sustainable refrigerants to prosper and lessen the effects of environmental impacts.<\/p>\n<p>In the end, a company must decide for themselves how crucial the size and scope of their supplier is to their success.\u00a0 It all comes down to the individual strategy and growth aspirations of each company.\u00a0 The best fit of a supplier must be determined by a qualified cross-functional team employed by the company in search of the best supplier.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p>The selection process for a lubricant supplier is an important undertaking for any company.\u00a0 Identifying strengths and weaknesses are crucial to the success of OEMs, distribution channel partners and end users alike.\u00a0 There are many business models to choose from, and ultimately a company must select based on their own unique criteria to ensure reliable supply and adequate support.\u00a0 Minimizing risk while capitalizing on competitive advantages requires planning and research to ensure the right selection is made.\u00a0 It is an ongoing process that changes with time \u2013 but the fundamental evaluation areas remain the same.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Selecting the right supplier capable of meeting unique business demands and application needs is a crucial process for any company.\u00a0 The types of suppliers today span a large spectrum of business models.\u00a0 Some offer product only, while others bundle in additional services and capabilities.\u00a0 Understanding exactly what products and services a business requires is critical [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":48909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[40,36,50,55,57],"tags":[],"cp_meta_data":{"_edit_lock":["1600874020:1"],"_edit_last":["1"],"_thumbnail_id":["48909"],"_et_post_bg_color":["#ffffff"],"_et_post_bg_layout":["light"],"_et_pb_show_title":["on"],"_et_pb_post_hide_nav":["default"],"_et_pb_page_layout":["et_right_sidebar"],"_et_pb_side_nav":["off"],"_et_pb_use_builder":["on"],"_et_builder_version":["BB|Divi|3.26"],"_et_pb_show_page_creation":["off"],"_et_pb_first_image":[""],"_et_pb_truncate_post":["<div class=\"et_pb_section et_pb_section_0 et_section_regular\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t<div class=\"et_pb_row et_pb_row_0\">\n\t\t\t\t<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_0  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_module et_pb_text et_pb_text_0 et_pb_bg_layout_light  et_pb_text_align_left\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_text_inner\">\n\t\t\t\t\t<p>Selecting the right supplier capable of meeting unique business demands and application needs is a crucial process for any company.\u00a0 The types of suppliers today span a large spectrum of business models.\u00a0 Some offer product only, while others bundle in additional services and capabilities.\u00a0 Understanding exactly what products and services a business requires is critical to the supplier selection process.The same philosophy can be used when selecting the ideal lubricant supplier.\u00a0 Factors such as price, services offered, reliability, quality, and technical expertise \u2013 among others \u2013 must be understood by key stakeholders at each company.\u00a0 Those factors must be prioritized to fit the needs of the business.\u00a0 While there are many criteria to consider, most can be narrowed down to a few major categories for evaluation purposes.There are five key areas (categories) of criteria to understand and evaluate during the lubricant supplier selection process.\u00a0 The five areas to focus on are: Application Expertise, Diverse Chemistry, Supply Reliance, Risk Abatement, and Ability to Serve.\u00a0 Each area addresses selection criteria that should be fully understood and agreed upon by those key stakeholders at each company.\u00a0Application ExpertiseEvery application has its own criteria to carefully consider, and therefore the demands placed on the lubricant are just as unique.\u00a0 A hydraulic fluid requires physical properties and performance specs different than that of a compressor lubricant used in a refrigeration application.\u00a0 Intimate knowledge of the system itself \u2013 the type of engine or compressor and system components, the working conditions of the system, metallurgy &amp; tribology aspects, and other important details \u2013 is critical to recommending the proper lubricant.Many companies require numerous lubricant recommendations for different applications\/processes spanning several geographical regions, or even concentrated at one large manufacturing site.\u00a0 They should consider seeking out a lubricant supplier with proven knowledge and expertise across a number of industries and market segments.\u00a0 Some applications are so unique they are served by lubricant suppliers with niche expertise in that particular application.\u00a0 In cases such as these, partnering with the most experienced provider can help to ensure the best possible lubricant recommendations.However, having one \u201csingle source\u201d provider of lubricants for multiple applications is ideal and carries many benefits.\u00a0 Reducing the number of vendors a company has to interact with can help minimize complexity.\u00a0 There may also be cost benefits offered by lubricant suppliers when multiple products and\/or services are contracted.\u00a0 Additionally, one single-source provider may be able to identify other opportunities across the site or throughout regional locations for better lubricant recommendations.\u00a0 This could further minimize complexity, realize cost benefits, increase efficiency, or all of the above.How challenging is the application?\u00a0 Are the working conditions severe?\u00a0 Is the system working in operating conditions involving extreme temperature ranges, challenging environmental aspects, or any other number of factors?\u00a0 If the answer is \u2018yes\u2019 then contracting a lubricant supplier qualified to solve those challenges is necessary.\u00a0 Not all suppliers are created equal.\u00a0 Many good suppliers do not have the technical expertise, problem-solving acumen, or leveraged resources capable of tackling complex application challenges.\u00a0 When applications are known to have recurring challenges or harsh operating conditions, supplier evaluation must include the capabilities to solve these unique problems.\u00a0Diverse ChemistryA considerable number of compressor systems and operating equipment components are capable of using different base oil\/additive chemistries to meet the requirements of the application.\u00a0 Depending on the exact requirements and operating conditions, several formulations can \u201cget the job done\u201d.\u00a0 The differences lie in the expected performance (driven by base oil used) and additional features provided (by utilizing additives).\u00a0 For example, some low-cost mineral oils are good options for certain applications, whereas semi-synthetic lubricants may boast longer life with less potential for oil loss.\u00a0 A supplier with a diverse chemistry portfolio can make a holistic recommendation based on chemistry, cost, and performance to offer the best solution for the application.Many suppliers leverage strong technical resources supported by highly skilled employees, state-of-the-art equipment and facilities dedicated to research and testing.\u00a0 Suppliers with strong technical support coupled with a diverse chemistry toolbox can offer several advantages:Formulation expertise to design lubricant solutions with properties best suited to minimize known application challenges and enhance performance. Companies can choose the best option for their needs versus working with a supplier only capable of offering limited solutions.Oil analysis services to help monitor performance and identify issues by understanding trends that are identified through consistent oil sampling programs. Some benefits of regular oil analysis (when applicable) include longer life for equipment, reduced production downtime and decreased maintenance\/repair expenses.Lubricant options offered across multiple applications for one company, as well as tiered options offered for one specific Many even offer product variations in line with the \u201cgood\u201d \u201cbetter\u201d \u201cbest\u201d philosophy to allow choices that balance performance, cost, and availability.Companies must determine for themselves how important it is to select a lubricant supplier with a diverse chemistry toolbox.\u00a0 Some may not require a supplier that offers multiple solutions.\u00a0 A company may simply desire reliable supply of a suitable lubricant option for their application at an acceptable price point.\u00a0 The key takeaway is this: Understand exactly what capabilities a lubricant supplier must have with respect to offering diverse chemistry options and formulation expertise.\u00a0 Every company is unique and must match a supplier\u2019s strengths with their most critical lubrication needs.\u00a0Supply RelianceSupplier selection must include evaluating the strength of their supply chain to effectively provide goods and services.\u00a0 Solid supply chain management can result in competitive advantages passed from the supplier on to the customer.\u00a0 Conversely, poor management of supply chain can hinder a company\u2019s ability to compete or much worse.\u00a0 Channel partners, such as lubricant distributors, may not be able to meet end-use customer demands if their suppliers falter.\u00a0 Supply interruptions can cause ripple effects that result in additional downtime, leading to lost production, culminating in decreased revenue opportunities.Larger companies, such as original equipment manufacturers (OEMs), require significant volumes of lubricant supply to maintain production across their manufacturing facilities.\u00a0 They should research and investigate how potential suppliers leverage their available supply of base oils, additives and other key components to lubricant manufacturing.\u00a0 Identifying potential risks such as shortages is crucial to avoid future delays or shut-downs in their production schedules.\u00a0 Lost production can be costly to OEMs \u2013 in some extreme cases it could result in losing hundreds of thousands of dollars a day.\u00a0 Of course, there is a limit as to how much a lubricant supplier is willing to discuss their strategy, as much of their contractual agreements are sensitive and\/or protected.\u00a0 However, a broader view of their supply capabilities, in addition to volume assurances, need to be understood and agreed upon by both parties.Companies that conduct business on a global scale must also consider the size and scope of their supplier\u2019s geographic supply chain footprint.\u00a0 Those operating on a smaller regional scale (such as the East Coast of the United States) may not be as concerned if their supplier has manufacturing and warehouse facilities in North America, France and China.\u00a0 Securing stable supply from a distribution channel somewhere in say, Indiana or Pennsylvania, is more of a concern for them.Logistic And Transport Concept In Front[\/caption]On the other hand, those organizations conducting global operations would be concerned whether or not a supplier had strategic manufacturing, blending, and warehouse locations in the Americas, EMEA, Asia Pacific and elsewhere around the globe.\u00a0 A straightforward benefit of a globally leveraged supplier includes product(s) available at multiple locations to satisfy customer demands.\u00a0 There are other benefits to consider that could have significant financial and operational impacts.\u00a0 These can influence a company\u2019s ability to compete in certain markets with the right products at the right price point.\u00a0 Margins are affected and therefore profitability as well.Some of the benefits of working with a supplier who has operations strategically located around the world are: lucrative shipping options, local\/regional\/national tax advantages, and the potential to reduce tariffs.\u00a0 Lubricant customers need reliable supply which, in part, relies on accurate lead times to get shipments to their door.\u00a0 Partnering with a supplier who has a global operations footprint provides options for getting product to customers in different regions in a timely manner.\u00a0 Some smaller lubricant suppliers, or those without a global supply chain, may not be able to meet forecasted demand in the desired timeframe.\u00a0 Understanding how a supplier leverages their network is an important evaluation metric for companies to consider.The costs associated with shipping products from one country or nation to another vary \u2013 depending on a number of factors.\u00a0 Some costs are reasonable, while others can put companies at a severe disadvantage.\u00a0 If they lack the financial resources or scale to absorb those costs, their margins may be impacted significantly.\u00a0 Taxes may be applied to goods entering a nation, a region, or even a local municipality.\u00a0 Tariffs in place because of geo-political relations between nations (ex: China and the U.S.) can have serious affects on global commerce.\u00a0 A supplier with strategic locations may be able to alleviate some of these extra costs by taking advantage of beneficial trade agreements or by utilizing local supply opportunities to avoid tax implications.\u00a0 In summary, supply reliance must be evaluated carefully to determine if a supplier\u2019s capabilities meet the needs of the company.\u00a0Risk AbatementEliminating risk and assuring product quality are certainly near the top of the list when evaluating potential lubricant suppliers.\u00a0 End users need to ensure the quality of the lubricant they are using in their compressor system or industrial machinery.\u00a0 Poor quality lubricants can lead to system issues up to and including complete failure of the compressor or other components.\u00a0 Distributors or other channel partners run the risk of damaged reputation or worse \u2013 legal battles over product failures or voided warranties \u2013 if they provide lubricants of poor quality to their customers.\u00a0 Equipment manufacturers and packagers demand quality lubricants for many of the same reasons as distributors.\u00a0 They also run the risk of damaged reputation, product recalls, and legal battles over warranty claims.The use of lubricants that have been produced in facilities adhering to global industry standards and tested for quality (subject to third party audits), is essential to risk abatement.\u00a0 Meeting the requirements of numerous certifications, registrations, and standardized practices is mandatory for lubricant suppliers.\u00a0 These requirements fall largely in the areas of chemical responsibility (such as REACH or Responsible Care\u00ae), manufacturing standards (such as ISO certifications), health and safety standards (such as GHS classifications or OSHA laws for workers).\u00a0 Other important certifications such as NSF, Halal, and Kosher are necessary when the lubricants are being used in food and beverage processing facilities.Private Label Risk AbatementPrivate labeling is a common practice in the manufacturing and distribution of goods &amp; services.\u00a0 The idea is simple \u2013 companies see additional revenue opportunities from selling goods &amp; services under their brand \u2013 but they lack the necessary expertise to do so themselves.\u00a0 Private labeling is very common in the compressor lubricant and industrial fluids manufacturing industry.\u00a0 The required resources of human talent, specialized technology, and state-of-the-art equipment are not easily replicated.Private label (PL) fluids are prevalent throughout the value chain as both manufacturers and a variety of distribution channel partners offer up someone else\u2019s chemistry in a package branded with their colors and their logo.\u00a0 Considering all the benefits private labeling offers, one of the most attractive is that (in most cases) the registrations and certifications (such as NSF H1 for example) pass through to the private label products.\u00a0 Companies in the supplier selection process considering offering their own lubricants should carefully evaluate the private labeling capabilities of the supplier.\u00a0 Questions such as, \u201cAre your product certifications and registrations current?\u201d and \u201cWill certifications such as NSF pass through to the private label products?\u201d are necessary to understand exactly what they are getting from the supplier.\u00a0 As beneficial as PL products can be to adding revenue streams, failing to check all the boxes on a supplier can have negative unintended consequences.In summary, risk abatement can be challenging to plan for and to execute, but with proper supplier evaluation it can be managed effectively.\u00a0 Companies need to ensure their potential supplier is following all current standards, such as those established by ISO.\u00a0 These standards, which are quite common in manufacturing, are aimed at ensuring goods and services are safe, reliable and of good quality.\u00a0 As mentioned, review of all product\/service registrations and certifications for accuracy is recommended.\u00a0 Making sure all best practices are being followed before contracting a supplier can avoid \u201csurprises\u201d down the road.\u00a0 Those \u201csurprises\u201d can be costly and have long-lasting negative effects to a company\u2019s reputation.\u00a0Ability to ServeEvaluating a supplier\u2019s \u201cAbility to Serve\u201d borrows a few of the concepts from the previous areas of evaluation yet maintains its own unique criteria at the same time.\u00a0 The concept of a supplier\u2019s ability to serve can be summarized in the following question: \u201cHow capable is the supplier to serve the needs of a particular company?\u201d.\u00a0 Depending on the size, scope, diversity and unique needs of a given company that answer could vary.\u00a0 In general, the following points should be addressed when evaluating a potential supplier\u2019s ability to serve.Breadth &amp; Depth of Products and Services OfferedQuestions to consider: Does my company need the lubricant only?\u00a0 Is my company considering a private label brand to sell?\u00a0 How much complexity does my company need managed?Lubricant suppliers are quite diverse in the number of products and services they offer.\u00a0 Some only offer the product itself packaged under their brand.\u00a0 On the other hand, some suppliers offer the full spectrum of lubricant management services including formulation, manufacturing, packaging variations, marketing assistance, private label services, distribution, and oil monitoring (testing) services.\u00a0 The needs of a company may change over time.\u00a0 Select a supplier that can serve current needs and support expansion efforts in the future.Level of Technical Expertise RequiredQuestions to consider: How much technical support does my company need?\u00a0 How complex are my company\u2019s applications?\u00a0 Do they require customized recommendations or are they straightforward in nature?\u00a0 Will we need ongoing collaboration and\/or training?Determining the level of technical support a company needs is a very important factor in the supplier selection process.\u00a0 For example, some companies only need low-technology lubricants (think mineral oil-based options) to fill a compressor and keep it operational.\u00a0 However, in applications such as hydrocarbon gas processing, the need for customized lubricant recommendations based on challenging operating conditions is required.\u00a0 The more complex an application or operating environment, the higher the likelihood of problems arising.\u00a0 Competent lubricant support can provide faster resolution to problems occurring in the field and avoid costly delays or equipment failures.\u00a0 In addition, need for local technical support versus remote consultation is a huge consideration, depending on the individual needs of an organization.Lubricant training \u2013 whether it\u2019s basic fundamentals or advanced diagnostic methodology \u2013 is not available from all lubricant suppliers.\u00a0 Channel partners, such as distributors, benefit tremendously from lubricant training to educate their salesforce and serve their customer base more effectively.\u00a0 It can be a significant competitive advantage.\u00a0 Careful evaluation of a potential supplier\u2019s training resources should be discussed and considered depending on the needs of the company.\u00a0 In this information-rich digital environment, the ability to provide the right recommendations and advice to customers is crucial due to the vast amount of misleading or one-sided content found online.Organizational Size &amp; ImpactQuestions to consider: \u00a0\u00a0How important is the global reach of my supplier?\u00a0 What level of collaboration does my company need to develop new technologies?\u00a0 Is the supplier built for the long-haul?In the Supply Reliance area of evaluation discussed earlier, the importance of determining the global reach of the supplier is necessary to match a company\u2019s needs to the products and services provided.\u00a0 Companies serving customers in one singular country have much different requirements than those operating on a global scale.\u00a0 Many factors including supply chain, regulatory requirements, profitability, and technical support need to be considered.\u00a0 Again, current growth goals must be weighed against future growth aspirations to ensure the supplier selection supports all present and future initiatives.According to the Law of Diffusion of Innovation, some companies will be at the forefront of innovating or adopting new technology and some will lag far behind.\u00a0 The middle majority adopt the technology at differing rates.\u00a0 Companies with a purpose to innovate, such as OEMs focusing on digital IoT technologies, may value lubricant suppliers who value the same philosophies.\u00a0 Identifying suppliers who have established industry connections and are pursuing new platforms of technology may play an important role in the supplier selection process.Many of the suppliers who favor innovation have established relationships with key industry stakeholders.\u00a0 For example, in the refrigeration industry, ties to groups such as ASHRAE provide instrumental connections to OEMs and refrigerant gas suppliers to evaluate future industry demand and collaborate to develop new solutions to allow sustainable refrigerants to prosper and lessen the effects of environmental impacts.In the end, a company must decide for themselves how crucial the size and scope of their supplier is to their success.\u00a0 It all comes down to the individual strategy and growth aspirations of each company.\u00a0 The best fit of a supplier must be determined by a qualified cross-functional team employed by the company in search of the best supplier.\u00a0ConclusionThe selection process for a lubricant supplier is an important undertaking for any company.\u00a0 Identifying strengths and weaknesses are crucial to the success of OEMs, distribution channel partners and end users alike.\u00a0 There are many business models to choose from, and ultimately a company must select based on their own unique criteria to ensure reliable supply and adequate support.\u00a0 Minimizing risk while capitalizing on competitive advantages requires planning and research to ensure the right selection is made.\u00a0 It is an ongoing process that changes with time \u2013 but the fundamental evaluation areas remain the same.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div> <!-- .et_pb_text -->\n\t\t\t<\/div> <!-- .et_pb_column -->\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div> <!-- 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