ICMS - Why out-source?
Coolant Management Services are usually outsourced for the foll. reasons
There is a Dedicated team with clearly defined set of activities
Focus on Routine, non-core activities
Comprehensive Data Management incl. Variance Analysis
Attrition of skilled in-house man power does not affect production parameters
Continuous improvements for Higher productivity & profits
Outsourcing Options
1... Labour Contractors
This is very common in most of the industries. They take up mainly Routine & usually
Mechanical Activities (like regular additions of Water, Coolants & Oils, cleaning of machines & Shop floor, and monitoring to a limited extent
But… They have limited knowledge of “chemicals” and their functioning and have Poor
ability to give quality improvements / suggestions or Solve problems
Why “MANAGEMENT BY SPECIALISTS” is important?
Coolants / Oils are Speciality products with high levels of differentiation
Each & every Specialty Service is extremely Complex…
Without devoting a lot of time, it is not possible for any one to be Up-to-Date…
A Proper understanding will invariably result in Lower costs of operation & bring in Value-addition…
This leads to the other type of Service providers – The Suppliers
(mostly demanded by the customers as part & parcel of supplies)
2... Suppliers of Oils
Most of the suppliers take up Coolant management along with Chemical Activities. They are
well equipped to manage their own products better than the customers thus reducing their
headaches
But this comes at a Cost…
They will “Prefer” to use their own products even though better products would be available in the market
The primary motive is to retain their own market share in a highly competitive field
- They do not try and optimize consumption, but rather keep it as high as possible
– There is also Dis-incentive to try out competitor,s brands even if other brands are clearly
better on specific applications
Customer will have less negotiation power when there is A Single Brand
In case customers use multiple brands, then there will be multiple agency, each trying to
“Manipulate” & prove that their product is “better” Resulting in Confusion
DOES THE CUSTOMER HAVE ANY OTHER OPTION … WHERE THE MANAGEMENT IS BY
EXPERTS BUT UN-BIASED AT THE SAME TIME ???
… YES …
THE NEW ALTERNATIVE –ICMS OR “INTEGRATED COOLANT MANAGEMENT SERVICES”
