When evaluating a strategy for launching a new lubricant brand to an already crowded market, the following items were a key factor:
• Direct deliveries from the Blending Facility to the customer, as opposed to the traditional method of selling via a wholesaler / retailer.
• Direct Technical Support from the lubricant supplier. • Forward all cost savings of this direct approach to the customer.
North Sea Lubricants’ ISO 9001:2008 Blending Facility is based in Dordrecht (Rotterdam area), and has a competitive advantage of being situated at the waterfront. It can source its materials (base oils mainly) directly from the vessel, as opposed to ‘in-land blending facilities’, which have an extra link in their supply chain as they purchase their materials by truck or train.
The Blending Facility has its own Purchase Team for all materials from base oil until the final packaging of the lubricant oil. This dedicated team keeps a close eye on the base oil developments in order to guarantee the best price level for its customers. It also has its own storage tanks for the different base oil groups:
Group I Base Oil: 17 tanks between 410-2000m3 with a total of 16.800m3
Group III & IV Base Oil: 12 tanks between 25-100m3
Finished Lubricants Tanks: 66 tanks between 3-60m3
with a total of 750m3 with a total of 1477m3
LINK
www.northsealubricants.com
With these key points in focus, the following procedure has been chosen: With this storage capacity the Blending Facility can ensure stable availability of products, as well as a fast delivery time for bulk products. Besides the storage of base oil and the finished lubricants tanks, the Blending Facility also has an external warehouse where North Sea Lubricants’ packed products (IBC, 200L, 60L, 20L, 5L, 4L,1L, 250ml) are stored. From here 24hr delivery services are arranged, as this is a standard in the Dutch Automotive market.
The BOVAGLedenwinkel’s website has a full range of products available, from which their customers can order against a very competitive price level. Customers select their desired products and packaging online, and the order goes directly to the customer support team which will handle their order. Bulk orders are realised within around five working days, while most of the packed lubricants are delivered within 24hrs.
By breaking the traditional method of selling through a network of wholesalers and retailers, North Sea Lubricants and BOVAGLedenwinkel are able to setup a cost saving and direct supply chain. Providing these untraditional direct services has already caused much debate by both the established lubricant brands and the wholesalers. Both parties however strongly believe in a direct approach which benefits the customer and the new product line of North Sea Lubricants is becoming a hit at the member store already.
LUBE MAGAZINE No.111 OCTOBER 2012
33
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