One famous application area of PIMS® is the PIMS® Global Lubricants and Greases Supply Chain Benchmarking. For over 25 years PIMS® has been benchmarking the supply chain of lubricants and greases plant operations. Currently our project covers over 50% of the global annual throughput. Hence it has become the industry standard for assisting companies to optimise their supply chain by learning from appropriate comparisons. The bi-annual project includes participants from:
- Global major companies
- State-owned entities
- Key independent local operators such as ILMA and UEIL members.
Lubricant manufacturing companies worldwide are facing a variety of challenges. Especially 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. Nowadays, where demand for many lubricants is falling, due to longer 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.
The Global Lubricants and Greases Supply Chain Benchmarking aids and supports the management and leadership 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 each plant that take into account its 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.
- A comprehensive plant by plant 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 drills 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 match a particular plant’s profile. Look-alikes are the closest strategic and structural matches on scale, product mix, complexity, logistical connexions, labour cost environment and automation level – factors that drive performance but are difficult to change. The comparison identifies areas of strength and weakness and quantifies the financial prize of changes that can be addressed immediately.
- In-depth comparison versus the lowest cost plants in a defined local area/region (who are not necessarily look-alikes). This highlights what local low cost competitors are doing differently and – crucially – what they are 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.
- An Executive Summary identifying the key areas of improvement, drilling down into details of how best practice peers achieve superior performance, and quantifying the financial prize from matching that.
- A 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.
Contact us today
Should you be interested in PIMS® Supply Chain Benchmarking, please contact us today or get in touch with one from our Consultants. We would be delighted to set up a meeting with the leadership team to give a detailed overview of the project, the analytics software and the benefits of participation.