Case Study: Lubricant Manufacturer Achieves Cost Reduction & Quality Stability

A medium-sized manufacturer specializing in R&D, production and sales of industrial and automotive lubricants has over a decade of industry experience. With consistent product quality, it built a solid regional customer base, covering engineering machinery, automotive maintenance and general machinery sectors.

Key Challenges

Over the past three years, the enterprise faced mounting pressures:

Procurement costs of API Group II/III base oils and core additives (anti-wear agents, antioxidants, viscosity index improvers) rose by over 21% due to global energy fluctuations and supply-demand imbalances.

Fierce market competition: Large brands launched price wars while small-to-medium peers adopted low-price strategies, squeezing profit margins without room for price hikes.

Fragmented procurement channels led to inconsistent raw material quality, causing finished product performance fluctuations and 8% downstream complaint rate.

The customer urgently needed an integrated solution to "ensure quality, cut costs and stabilize supply".

Customized Solutions

We assembled a dedicated team of supply chain experts and chemical engineers to deliver targeted support:

Optimized supply chain: Selected 3 premium base oil suppliers and 2 additive manufacturers from our global network of 50+ partners, replacing fragmented sources with a one-stop "base oil + composite additives" solution.

Formulation upgrading: Developed tailored composite additive blends (ZDDP derivatives, phenolic antioxidants) to eliminate "performance redundancy", improve raw material compatibility and reduce usage of high-cost single additives.

Remarkable Results

After 3 months of debugging and mass production validation:

Key product indicators (viscosity index, anti-wear performance, high-temperature stability) met or exceeded original standards; downstream complaints dropped to 3%.

8% reduction in comprehensive raw material costs, translating to annual savings of over 2.8 million yuan (based on 5,000-ton annual capacity).

Procurement efficiency improved by 40%; supply cycle shortened from 15-20 days to 7-15 days; inventory turnover increased by 30%.

Customer Feedback

"Your one-stop solution solved our cost and quality issues comprehensively. The professional support throughout—from demand analysis to technical guidance and after-sales service—exceeded our expectations. With reduced costs, we retained core customers, expanded into 3 new regional markets, and achieved 22% YoY sales growth. We’ve transferred all lubricant raw material procurement to your company and look forward to expanding cooperation into metalworking fluids and rust preventive oils."

Today, the two parties maintain a deeply bonded strategic partnership, realizing mutually beneficial and sustainable development.