In the metalworking industry, you often need to balance reliability with cost when acquiring industrial oils and lubricants. Understanding your current material inventory–and matching it to your current and future needs–can help address any gaps or inconsistencies.
The last thing you want is having too much material inventory (wasted product and revenue), or not enough (reduced production). Here are some strategies to better manage your metalworking oil and lubricant inventory:
Forecast Demand Accurately
You've likely experienced that moment of anxiety when discovering you're running low on a critical hydraulic oil or lubricant. Instead of constantly reacting to shortages, you can get ahead of the curve through smart demand forecasting.
- Mine your past usage data to spot patterns. Pull monthly consumption reports for the past 2-3 years, break down usage by equipment type and department, and look for patterns in high-consumption periods.
- Prepare for seasonal spikes. Consider how extreme temperatures affect storage and handling needs and build buffer stock for seasons with historically higher usage.
- Syncing inventory with your production schedule. Plan for new equipment installations or decommissioning, consider upcoming changes in shift patterns or production hours, and factor in special projects or customer orders.
You're not just tracking numbers–you're protecting your operation's continuity and your team's productivity.
Track in Real-Time
Gone are the days of clipboard tracking and surprise shortages. Modern inventory systems can take this burden off your shoulders and give you peace of mind about your lubricant supplies.
- Use real-time monitoring. Install digital level sensors in bulk storage tanks and set up dashboard displays showing current inventory levels.
- Automated reordering. Establish minimum levels based on lead time and critical needs, create automatic purchase orders when reaching reorder points, and set different thresholds for critical and non-critical lubricants.
Practice Proper Storage and Handling
Proper storage isn't just about keeping oils or lubricants in a container. It's about preserving their quality and protecting your investment. Here's how to ensure every dollar you spend on lubricants gives you maximum return.
- Create an ideal storage area. Choose a location away from extreme temperatures (ideally between 40-80°F), install proper ventilation to prevent fume accumulation, use temperature monitoring and control systems, and create dedicated zones for different lubricant types.
- Store containers securely and safely. Store drums horizontally, with bungs at 3 and 9 o'clock, use drum cradles or racks to prevent rolling, rotate stock using First In, First Out (FIFO) principles, and keep containers off the ground using pallets.
- Prevent contamination. Keep containers sealed when not in use, create dedicated transfer containers for each product, install breathers on bulk storage tanks, and filter new oil before adding to equipment.
Stop Leaks Before They Start
Every drop of oil or lubricant that hits the floor is money wasted and a potential safety hazard. It’s also a sign that your equipment might be malfunctioning. Prevent lost products (and costly replacements) by catching leaks before they become major problems.
- Inspect for leaks daily. Assign specific inspection routes, use thermal imaging cameras for hard-to-reach areas, and document all findings–even minor ones.
- Watch for early warning signs. Check for spots or stains under equipment, excessive oil or lubricant consumption, unusual equipment sounds, increased operating temperatures, or vibration changes.
- Train operators to spot problems. Create incentive programs, recognize proactive reporting, and share success stories.
Remember, you're not just managing oils and lubricants–you're protecting your equipment, your workers, and your bottom line. Take it one step at a time, and focus on the improvements that will make the biggest difference in your specific operation.
Need help getting started? Start with one area that's causing you the most stress right now, and contact us today for guidance.