Scope
Sourcing Shell lubricants from a German distributor, with supplier verification, negotiation and logistics coordination
A Kazakhstan fuel-station network required a reliable source of Shell lubricants from Germany for its commercial-vehicle oil-change service.
The procurement work included supplier research, verification of potential distributors, commercial comparison, negotiation, assortment coordination, documentation and payment coordination. After logistics problems affected the first shipment, the process was expanded to include logistics coordination through an experienced transport partner.
The client paid the German supplier directly. Logistics services were also paid directly to the logistics provider. The procurement work was performed for a separately agreed service fee.
This case is based on procurement work completed by ArcMoni's founder in 2020, before the ArcMoni brand was established.
Results
- Delivery time cut from approximately one month to approximately one week after logistics coordination was brought into the managed procurement scope
- Selected supplier confirmed as an official Shell distributor before commitment
- Lower logistics cost achieved on the second shipment compared to the first
- Recurring procurement relationship covering multiple subsequent shipments of truck and passenger-vehicle lubricants
Client Requirement
The client operated a network of fuel stations in Kazakhstan and also provided oil-change services for commercial vehicles. The initial requirement was to purchase different Shell lubricant products from Germany for trucks. The cooperation later expanded to include lubricant products for passenger vehicles and several subsequent shipments. The client needed more than access to a seller. The procurement task required a commercially competitive and credible supply option, coordination of the product assortment and management of the international purchasing process.
Procurement Scope
The work included:
- receiving and clarifying the client's requirement
- researching multiple potential suppliers in Germany
- comparing available commercial offers
- checking the companies and their supplier status
- confirming that shortlisted companies were official Shell distributors
- selecting the strongest commercial and supply option
- negotiating pricing
- coordinating the required product assortment
- supporting contract and documentation coordination
- keeping the client informed throughout the procurement process
- coordinating direct payment from the client to the supplier
- coordinating shipment documentation
- supporting international logistics coordination
- coordinating communication between the client, supplier and logistics parties
The goods were not purchased and resold to the client through the procurement intermediary. The client transferred payment directly to the selected German supplier.
Supplier Search, Verification & Negotiation
Several German supply options were evaluated rather than proceeding with the first available quotation. Potential suppliers were compared commercially and checked before the final sourcing option was selected. The selected company was confirmed as an official Shell distributor. Commercial comparison and negotiation resulted in a lower procurement cost than the sourcing option previously available to the client. Because the original records are not currently being used to substantiate an exact percentage, no specific savings figure is claimed in this case study.
First Shipment: A Logistics Problem After Procurement
The goods for the first shipment were ready and collected in Germany by a logistics provider selected independently by the client. The procurement of the goods had been completed, but the international transport stage did not perform as expected. During transit, the carrier encountered extended questions concerning cargo documentation, transport requirements and the handling of lubricant products. The resulting delays, together with slow transport execution, extended the delivery to approximately one month. This highlighted an important procurement issue: Finding the right supplier and negotiating the right product price does not by itself ensure an efficient international delivery. The competence and coordination of the logistics chain can materially affect the final procurement outcome.
What Changed for the Next Shipment
For the subsequent shipment, logistics coordination became part of the managed procurement process. An experienced Baltic logistics partner with brokerage support was engaged. The client continued to maintain direct commercial visibility:
Buyer
- paid the German supplier directly for the lubricants
- paid the logistics provider directly for the transport service
Procurement Coordinator
- coordinated the supplier
- coordinated shipment preparation
- coordinated documentation
- coordinated communication with the logistics provider
- followed the shipment process
- kept the client informed
Logistics Partner / Broker
- performed the transport and relevant customs/brokerage functions within its own professional scope
This separation of roles kept supplier payment, logistics payment and procurement-management fees transparent.
Second Shipment Outcome
Once the goods were ready, the logistics partner collected the shipment in Germany. The shipment reached the client's warehouse in Kazakhstan in approximately one week. The logistics cost was also lower than the logistics option used for the first shipment. Customs and brokerage activities were handled by the logistics partner and its broker, while the overall process was coordinated on the client's behalf. The improved result did not come from changing the product requirement. It came from managing the supplier, documentation, logistics and communication as connected parts of the procurement process.
Ongoing Cooperation
The relationship continued beyond the initial truck-lubricant requirement. The client subsequently expanded procurement to include Shell lubricant products for passenger vehicles, and several further shipments were completed. This changed the work from a one-off supplier search into recurring procurement coordination.
Commercial Model Used in the Project
The commercial structure is particularly relevant to how ArcMoni is positioned today.
Buyer
- purchased directly from the selected supplier
- paid the supplier directly
- paid the logistics company directly
Supplier
- supplied the lubricant products
- received payment directly from the buyer
Logistics Provider
- provided transport and brokerage support
- received payment directly for its services
Procurement Coordinator
- researched and evaluated suppliers
- negotiated commercial terms
- coordinated the purchasing process
- coordinated documentation and payments
- coordinated logistics
- received a separately agreed percentage-based service fee
The procurement coordinator did not need to become the reseller of the lubricants or the logistics service in order to manage the project.
Key Procurement Lessons
1. Supplier Price Is Only One Part of Procurement Cost
A commercially attractive supplier offer can lose part of its advantage if logistics is expensive, delayed or poorly coordinated. Product sourcing and logistics should therefore be evaluated as connected procurement activities.
2. Direct Payment Does Not Mean the Buyer Must Manage Everything Alone
The buyer paid both the supplier and logistics provider directly. At the same time, the supplier, documentation, transport communication and procurement process were coordinated on the buyer's behalf. Direct commercial relationships and external procurement support can therefore work together.
3. Logistics Capability Matters for Industrial Products
A transport provider should be suitable for the actual cargo and route. Where documentation, customs or product-handling questions can arise, relevant logistics and brokerage competence should be considered before shipment.
4. Procurement Problems Can Improve the Next Sourcing Cycle
The first shipment exposed a weakness outside the supplier-selection stage. Instead of treating the shipment delay as unrelated to procurement, the next procurement cycle incorporated logistics coordination into the managed scope. The subsequent shipment was faster and had a lower logistics cost.
What This Case Demonstrates
This project demonstrates the buyer-side procurement model that ArcMoni is built around today:
- Requirement
- Supplier Research
- Supplier Verification
- Commercial Comparison
- Negotiation
- Buyer Approval
- Direct Buyer-to-Supplier Payment
- Documentation & Logistics Coordination
- Delivery Follow-Up
- Recurring Procurement Support
The buyer remained the buyer. The German distributor remained the supplier. The logistics company remained the transport and brokerage provider. The procurement role was to coordinate these parties and manage the process in the client's commercial interest.
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