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PIMS® Global Lubricants and Greases Supply Chain Benchmarking

////PIMS® Global Lubricants and Greases Supply Chain Benchmarking
PIMS® Global Lubricants and Greases Supply Chain Benchmarking2018-10-12T12:47:44+00:00

PIMS® Global Lubricants and Greases Supply Chain Benchmarking

Motivation:

Lubricant manufacturing companies worldwide are facing a variety of challenges. Economic uncertainty coupled with increasing competitive pressure is forcing producers to re-examine all areas of their operations. Historically, there was pressure to increase market share and capacity. Now, in many regions where demand for many lubricants is falling, due to lengthened vehicle service intervals, manufacturers are increasingly placing an emphasis on a lean and efficient supply chain. Conversely, in regions where demand for lubricants is rising due to increasing economic development, companies are focusing on optimal capacity and complexity management.

For over 25 years, the PIMS® Global Lubricants and Greases Supply Chain Benchmarking programme has become the industry standard for assisting companies to optimise their supply chain. The bi-annual project includes participants from global major companies, state-owned entities and key independent local operators such as ILMA and UEIL members and covers over 50% of the global annual throughput.

Objectives:

The project aids and supports the management and leadership team to:

  • Capture comparable cost and performance metrics across different companies and regions
  • Measure the drivers that cause performance differences: scale, automation, product mix, complexity, service levels, distribution policy, location, processes, etc.
  • Quantify how performance is affected by these drivers
  • Set benchmarks for you that take into account your strategic and structural profile (i.e. the drivers that are unlikely to change)
  • Obtain results that ensure data confidentiality while setting targets for cost and performance improvement
  • Implement recommended changes to achieve better profitability and growth.

Project deliverables:

1. A comprehensive report comprising:

  • Performance comparison against top quartile, median, and bottom quartile performance on a wide range of performance measures against the regional/country data sets. For production costs, PIMS will drill down through a comprehensive waterfall linking unit cost to operating metrics in each area of the plant measuring complexity, productivity, configuration, production planning, etc.
  • “Look-alike” comparison against the performance of the best plants that resemble your plant’s profile. Look-alikes are the closest strategic and structural peers, based on your current profile (i.e. scale, product mix, complexity, labour cost environment and automation level). The comparison identifies areas of strength and weaknesses and quantifies the financial prize of continuous improvement.
  • In-depth comparison versus the lowest cost plants in a defined local area/region. This highlights what low cost peers are doing differently and crucially, what are they doing better. PIMS can amend the default definitions and boundaries of local areas to meet clients needs, so long as the number of observations in the database can guarantee 100% confidentiality.

2. An Executive Summary identifying the key areas of improvement, a thorough drill down of how best practise look-alike peers gain a competitive advantage and quantifying the financial prize that could be achieved if the performance levels of the best practice “look-alikes” peers can be surpassed.

3. 12-month access to the PIMS® analytics software. This empowers our clients’ operations excellence team to undertake deep-dive analysis on the performance of their plant(s), independent of the PIMS consultants.

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