Historically major commercial customers have had to deal with multiple suppliers based on lowest unit price of products on short-term contracts. This approach did not take the effective maintenance of equipment into account as products bought only met the minimum specifications for the running of the equipment.
It also meant that there was no real commitment from the supplier to ensure an understanding of the actual requirements of their customers. It was an arm's length relationship.
TOTAL's liquid fuels solutions was developed to transform the relationship with the customer to that of partnership wherein each has the interest of the other.
The knowledge and experience vested at TOTAL helps to advise customers on which products are best suited for their equipments and needs. TOTAL South Africa is able to provide its current and potential customers with a big basket of lubricants that comply with the latest technological requirements. The types of customers that can utilise this service include mining, steel, paper, automotive, aviation etc.
Through LFS the customer only pays for the actual fuel and lubricant consumption on-site. Much attention is paid to ensure that equipment used for dispensing the products are clean and free from contamination, while the products used are of a high quality and environmentally more acceptable.
By implementing an LFS, the customer is assured of an uninterrupted supply of fuels and lubricants. This means that the customer has a single source procurement procedure in place that will promote cost efficiency and product performance reliability.
Implementing LFS the customer will have the following at his disposal: the provision of an information management system; the provision of a programme for assessing fuel and lubricants consumption and cost per equipment by using a holistic approach; Total will provide the capital for the upgrading of equipment facilities to comply with ISO 14000 standards; will take over the responsibility for stock control; the replenishment of fuels and lubricants; and provide qualified staff-support to handle fuels and lubricants, technical and application issues.
The benefits of implementing LFS include cutting operation costs on fuel and lubricant purchases, and reduce losses as a result of the inefficient functioning of equipment. The competitiveness of the customer will increase.
Total together with the customer will develop a short and long term strategy to lower operational costs that will include the management of fuels and lubricants from ordering to invoicing, undertaking an extensive lubricant survey, streamline the replenishing mode, upgrading of equipment, a cost history and the identification of short comings.
The successful implementation of LFS will create a pro-active maintenance philosophy that will assist in avoiding the onset of machine wear and component degradation. It may also include a predictive maintenance programme to ensure that machine repair takes place before actual breakdown. Preventative maintenance may be put into place to schedule maintenance based on historic trends, experience and reliability data.
The implementation of the liquid Fuel Solution by TOTAL has a major impact of the cost efficient operation of the customer's business as well as profitability