Fluid Management – An Easy Return on Investment
Bulk storage of lubrication fluids makes sense for fleets today to reduce downtime, increase efficiency and improve operating profitability. The savings are obvious, but with the right system and processes, additional savings are possible. Hidden costs with bulk fluid include but are not limited to:
- Incorrect billing
- Incorrect fluid dispenses
- Monthly reconciliation of fluids
- Billing entry
- Manual paperwork
- Downtime or running out of fluid
- Space for waste fluids
- Line break or spill
Fluid management is about solving the five "Ws": who performed the dispense, what quantity of specific fluid was dispensed, where in the facility this dispense took place, when it occurred and why (i.e., which work order and customer record the dispense was tied to).
How Do The Five "Ws" Address The Hidden Costs Associated With Bulk Fluid In Fleet Applications?
Incorrect fluid dispenses and billing mistakes are eliminated when technicians are allowed to dispense only against a valid work order. Additionally, when technician mistakes do occur, such as accidentally putting the wrong fluid in a vehicle or missing the oil plug, all dispenses are recorded. Fluid management allows only authorized dispenses – so fear of misuse is eliminated.
With labor being one of the biggest cost concerns of fleet management, fluid management systems can reduce or eliminate time spent on inventory reconciliation, billing and manual paperwork.
Fluid management is also more than just monitoring fluid dispenses. These systems also monitor bulk fluid tank levels – this eliminates downtime due to running out of fluid and provides a more efficient and safer way to handle full waste oil tanks.
Finally, in case of a line break, some fluid management systems, such as Graco’s Pulse™ Fluid Management, provide an added level of security and prevent pumps from continuing to empty the tanks by allowing the pump to operate only when a dispense is requested at the meter.
How to Calculate?
With all the above concerns a fleet might be confronted with, Graco has developed an easy-to-use comprehensive ROI calculator that walks you through key considerations and calculations:
- Inventory Loss Factor – the percentage of oil that may go unaccounted for due to duplicate oil changes, human error, spills, etc.
- Inventory Savings – based on the oil prices in your market and estimated reduction in lost oil, this is the amount you could save optimizing your fluid inventory.
- Labor Savings Per Oil Change – estimate of time a Pulse Fluid Management system could save you throughout your operation, including technician time, accounts payable, service writing, etc.
- Labor Rate – blended rate to account for all the different functions associated with service, management, accounting, technicians, service writing, etc.
Visit www.graco.com/pulse to find out how much fluid management can save you.