Like many industries, the mining industry is forced to cut costs and do more with less. One key area to look at reducing costs is oil. So, how can you save money on oil? Here are 5 ways to decrease oil costs on a mine site.
Reduce the Number of Different Lubricants You Use
Not all lubricants need to be specialised for individual usages, for example, some lubricants can be used for engines, transmissions, and hydraulics. By amalgamating the types of lubricants you purchase and use on site, you can save on warehousing, shipping & handling, spoilage, and more. This will also help to manage your working capital by only purchasing what is needed vs. holding on to multiple types of lubricants that are only partially used.
Reduce the Types of Oil Packages Purchased
There are multiple types of oil container options. You can purchase pails, drums, totes, and bulk tanks. It may be best for your business to have 2 of these options, but do you need one of each? If not, consider reconciling the types of containers you purchase. Similar to reducing the types of oils you purchase, only ordering the container types you need will reduce warehousing, shipping & handling, and spoilage.
Proper Storage
Make sure that you have properly labelled lubricants with storage life information properly visible and that you follow the manufacturer’s recommended storage procedures. For most lubricants, they should be stored off of the ground and adequately sealed in order to ensure dirt and moisture contamination is minimised. This will help ensure that you aren’t throwing away that costly oil more than you need to. Just as importantly, you will avoid damaging equipment with oil past its prime.
Proper Warehouse Management
Discarding lubricant past its shelf life can be costly. Use those product labels and make sure that the oldest product is properly managed by warehouse staff to always be used first.
Get The Big Picture
What is the total cost of the oil you purchase? It isn’t just the cost of the product. As you can see from some of the points above it is also about warehousing, shipping, and the ability to use the product you have before the end of the product’s shelf life. The total cost is also about energy and maintenance costs. Make sure that you are buying the right oil that ultimately keeps your overall business costs down.
Do you have a type of lubricant that you use to keep your costs down? Do you have any other tips? Please comment below.
