ILMA Compoundings - February 2020 - 26

recommends a "first in, first out" strategy. "Hold drummed,
finished product for the shortest amount of time before it
goes to your customers," Moreno said.

Controlling Movement and Inventory

South Coast Terminals hasn't had a contamination issue
in 20 years due to the time and effort spent on training,
operating acumen and meticulous paperwork, Griffin said.
"The main thing is to make sure that when you're moving a
product from Point A to Point B, you're taking samples in the
appropriate place and you're retaining those samples, so you
have a chain of custody and a tracking mechanism," he said.
Proper storage techniques can promote cost efficiencies by
preventing loss of product and assuring just-right inventory
levels. Overbuying lubricants - buying a 55-gallon drum
when the company only uses 20 gallons in a year - can
promote aging and contamination.
Bulk purchases inspired by a low price can create a counterproductive "Costco effect," with sitting inventory racking
up storage costs and approaching expiration dates. Conversely, buying in drums to simplify storage when buying
in bulk is more cost-efficient can also be a mistake. "It's all
about buying to match your usage," Martin said.
The "difficult dance" of keeping inventory at ideal levels
depends on "your best forecast," Moreno said. Changing
market conditions can disrupt carefully laid plans, as
demand rises for some components while it falls for others.

Heightened Safety

Cleanliness is safety. "Inherently, our business can get dirty,"
Moreno said. "Inherently, it's slippery. Spills, improperly

labeled product, improperly stored products that lead to
spills - it's dangerous, and it's costly."
For guidance, lubricant manufacturers need look no further
than API 1525, Bulk Oil Testing, Handling, and Storage
Guidelines Documentation, for processes that "absolutely,
100% help you maintain a clean and safe work environment,"
while also assuring that items ship out on spec.
Proper storage and transfer processes keep oil from escaping containers, which improves safety. "Slips, trips and falls
are a direct correlation to how well oils are being transferred
and stored," Martin said.

"Hold drummed, finished product
for the shortest amount of time
before it goes to your customers."
Felix Moreno Jr., owner, EGF
Energy Partners
Proper vetting of products to be stored is another safety
consideration. When South Coast Terminals gets a request
to store a product, the company's rigorous tests and chemical
profiles of actual samples assure regulatory compliance and
safe proximity to other materials. "We have a responsibility
to the neighborhood and the light industry around us to not
only be compliant, but also to be a good neighbor," Griffin
said. "Even though we may have a lot of products on our
permit list, we wouldn't necessarily bring a product on our
site that has a strong odor or something that might become a
nuisance. Just because you can doesn't mean you should."

Testing and Standards

Moreno realized in recent years that he could certify the
quality of a product batch from the blending tank, but he
needed assurance that the product remained consistent on
the journey to its final container.
So, EGF Energy Partners created a second lab facility in
the packaging area dedicated to certifying consistency from
tank to package. Also critical to quality is a batch-numbering system that follows every quart, gallon, drum, tote and
tank. The numbering system prevents errors and supports
the "first in, first out" system with chronology data.
At South Coast Terminals, some clients have similar
products with different names, depending on the intended
market. Product coding strengthens the identification
process as products are moved. "It's pretty easy to get those
things confused, even if you're a seasoned operator," Griffin
said. "It's great to have a product name or bar code to help
you identify what you're doing."

FEBRUARY 2020

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ILMA Compoundings - February 2020

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