12 June 2013

It is all about ensuring high-quality product supply globally

Written by Jim Holmbäck
Published in Oil products

As a global operator in the base oils business, it is crucial for us to ensure product supply globally at all times. Equally important to the availability of the products is that our products are of the same top-tier quality regardless of the region.

Ensuring global availability of the same NEXBASE® grades is part of joint effort of creative supply chain planning and quality control in close collaboration with operations at all plants. For us at Neste Oil it is high priority with no alternatives that all our NEXBASE® products at all sites fulfill the same manufacturing specification. Besides routine operation analyzes at production plants, we have placed extra effort on our quality control. Therefore, our experts in Base Oil Market Development team are trending and keeping an eye on our critical properties. Based on our experience in Base Oil business since 1997 we have self-educated ourselves to prevent errors in early stages in order to maintain constant product quality regardless of the region.

Working globally as a top-tier player in high quality VHVI base oils business makes production planner's job challenging. The lead time from the customer order to delivery can easily vary from 1–2 weeks up to 3 months. With good customer relationships and good understanding of the markets, we ensure that NEXBASE® is always available in the right place at the right time. In practice, this is based on monthly updated rolling forecast for the coming months. Starting point is always based on joint understanding of the market situation between our sales team and customers. The understanding of the demand is converted into our internal market update per region. Report is then compared against our daily monitored inventory balances and based on demands the production plants are justified. Markets can be very volatile from time to time, and therefore we maintain some inventory buffers to be able react to changes.

With uniform team in Neste Oil and close relationship with our customers, we are forerunners as providers of cleaner traffic fuel solutions.

Jim Holmbäck
Production Planner, Supply Chain Management