How to keep a grip on oil waste and record a rise in oil profits up to 22%
The problem of oil wastage in dealerships
In franchised dealerships, oil has a habit of disappearing without trace. Oil ‘wastage’ typically means oil that is taken into a dealership but not charged out. The oil could be spilt, lost through leakage, mischarged, stolen, used in demonstrations or transferred between departments without being recorded. Research conducted by Castrol found that failure to keep a grip on oil waste was costing franchised networks around 60 million euros per year, which equates to losing 11% of motor oils profit.
Addressing the issue
Castrol conducted an internal project to evaluate options to upgrade their existing fluid management system to improve the monitoring of daily oil usage and reduce wastage. The main criteria for the new specification was a wireless system with stable signalling, ease of installation, straightforward end user control, Dealer Management System (DMS) connectivity and market competitiveness.
Complete control of fluid inventory
Graco presented its Matrix Total Fluid Management System, which provides automated tracking and monitoring plus state-of-the-art dispensing for complete control of a facility’s fluid inventory. It consists of management software, transceiver, Matrix meter, pump air control and tank level monitor. Together, these components wirelessly talk to each other through an RF signal to collect data from fluid dispensers, levels in bulk oil and waste tanks, plus much more.
Installed in over 300 workshops
Graco and Castrol conducted a five-month pilot project with Matrix. Castrol was impressed with the capabilities of Matrix, and the system was endorsed as a premium product suitable to support the Castrol Lubricants business. It was rolled out in Castrol workshops across UK & Ireland; currently over 300 Matrix systems have been installed. The Matrix system can be retrofitted to a dealership oil storage tank without the need to cut pipes and with relatively little disruption to business in an aftersales department.
Increased profitability and reduced wastage
Matrix is helping Castrol dealers monitor day-to-day oil usage, reduce oil wastage and improve oil profitability. Dealerships that have installed the Matrix fluid management system have recorded a rise in oil profits of up to 22%.