Statoil Lubricants manufactures and markets lubricating oil for vehicles, machines and industrial facilities. 90 million liters of lubricating oil is sold annually at a total value of more than NOK 2 billion. The operation is carried out in Scandinavia, Central Europe and Russia. Sales are made at the company’s own offices in eight European countries as well as via distributors in a total of fifteen countries.

Statoil Lubricants’ approximately 750 lubrication products are currently manufactured in Nynäshamn and the Norwegian city of Fagerstrand. In addition, two years ago a new blending facility was opened in Poland.

“The reason for opening our Polish facility was to improve our entire supply flow out to the growing markets in Eastern Europe,” says Sara Degerlund, who is manager of Planning & Logistics at Statoil Lubricants.

With the merger between Statoil and Hydro in 2008, both companies’ lubrication operations were integrated. This has resulted in a stronger retailer network and an increased market share as well as increased conditions for an effective logistics operation.

“The trend is that we are centralizing more and more in our operation in order to reduce costs, but we must always be able to meet the high demands for good customer service,” emphasizes Sara Degerlund.

Our customers include large industrial companies as well as smaller workshops. Continuous and predictable delivery is a fundamental requirement regardless of the size of the customer. “If we fail to deliver this can result in costly downtime, or in the worst case scenario, breakdowns with our customers,” says Sara Degerlund, and illustrates this by talking about a paper plant or oil platform that has to shut down operations simply due to a lack of lubricants.

Successful cooperation with Sonat

Sara Degerlund tells that the cooperation with Sonat was initiated on a rather small scale, but since then has grown and deepened as a result of Statoil Lubricants’ rather extensive structural changes.

“We had known about Sonat earlier and had a positive image of the company. When we needed to carry out an overview of the need for pallet space in our new central warehouse in Flen we decided to let Sonat do the job,” says Sara Degerlund.

The assignment turned out well and resulted in several smaller assignments. For example, Sonat’s personnel have functioned as project support, been responsible for the procurement of transport services, and also participated in the identification and analyses of the operation’s logistics and distribution.

“Currently, with Sonat’s help, we are carrying out an overview of our 14 regional warehouses in Norway. The analysis shall show how these warehouses can be used in the best way; if more or fewer distribution solutions are needed and also what distribution solutions are needed,” says Sara Degerlund.

So far she thinks that the cooperation with Sonat has worked well…, actually very well.“

Sonat’s logistics specialists are competent, take their own initiative to drive the project independently, and also show a sensitivity that you do not see with all consultants,” says Sara Degerlund with a smile.

“I think that the cooperation is working quite well. Sonat’s employees are flexible and analytical and we have good dialogues that are characterized by honesty about debiting and the will to always become better.”

Statoil Lubricants has 400 employees and has sales of NOK 2 billion. The operation is a part of the Statoil Group’s business area, Manufacturing & Marketing (M&M). The business area has 13,000 employees and is responsible for the group’s oil distribution, processing, sales of crude oil and refined products, operates a network of 2,000 gas stations and also markets natural gas in Scandinavia. Manufacturing & Marketing carries out operations in thirteen countries; runs two refineries, one methanol plant and three crude oil terminals.