How to Construct A Lube Supply Agreement

Establishing corporate contracts to purchase materials, particularly lubricants, holds a bittersweet appeal to many. Mill personnel work closely with their vendors, in some cases for a prolonged period, to establish business relationships that will deliver results when the chips are down. While it makes good sense to bundle purchases together in order to leverage increased volume into improved pricing, improved delivery and the hope of improved service, the reality for many is that corporate purchase agreements do not deliver. However, sometimes they do deliver. Come take a look at one approach that has worked well.

Broadly speaking, a key objective for any organization, according to business owners, is to return value to the shareholder. Value can be spelled in a multitude of ways. Ultimately, there needs to be a financial return for the owner if the company wishes to keep the owner’s investment. It doesn’t matter if the company is public or private, company owners wish to have the capital invested in a company respected and put to the best use.

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