Forklifts form a major cost component in most warehouses and their producers make many claims for their truck performances which do not help in the selection process because the burden of proof is often not forthcoming. While among the major truck makers build quality and reliability are much the same, long-term performance rates can vary by up to 30%. When Linde launched its 39X H20-H25 engine trucks, for example, it claimed the trucks could deliver up to 35% more fuel efficiency, 25% additional pallet movements per hour and lower maintenance needs. This shows that never more than today has the risk of wrong selection been greater and the decision process more challenging.
A common mistake in the buying decision is that initial truck prices or rental costs still feature as the number one priority. This is often a big mistake because running costs are far more important as they account for 70% of a truck’s life cycle costs, made up mainly of driver, fuel and maintenance costs. But there are also interface costs, which can be so crucial that they convince warehouse operators to design their new premises, or alter existing ones, around a change of forklift. Interface costs here mean how a truck’s design can influence building facilities’ costs like rent, rates energy and initial building construction costs.
The truck cost equation is further complicated by the method of acquisition and the after-sales service quality. Truck providers prefer their clients to rent machines with a long-term contract maintenance deal attached because they make their highest returns here. Buying, however, is usually one third cheaper over the long-term, provided internal maintenance skills are adequate. This is partly because competition is intense, with buyers squeezing up to 30% off list prices for standard counterbalanced and reach trucks. Even so, rental with contract maintenance is the preferred option in Britain, except for small operators, and accounts for around 70% of all trucks supplied. Advantages include cost clarity over the trucks’ life spans, freeing of management to concentrate on core competences and balance sheet advantages.
Surveying the product offerings, however, can be a time-consuming process so what can be done to avoid making the wrong decisions in a sensible time frame? Independent consultants can be useful in providing a short cut and minimising the risks. They should know the strong and weak points of the many trucks available but just as important they should be experts on basic warehouse design and environmental issues. Hiring them, of course, adds cost to the truck-buying process but a cost-free aid is now provided by most leading truck manufacturers through the use of software tools.
The best time to consider a holistic approach to truck choice is when planning a new warehouse and this is where free services like Briggs’ new Phoenix suite at its Cannock HQ can be worthwhile. In partnership with Yale Europe Materials Handling, Phoenix can help customers in the planning stages, from flooring to racking and handling equipment. As Briggs’ Mark Murfet explains: “It is more important than ever for companies to get the most out of their assets and storage space; avoiding the risks and additional costs associated with equipment not suited to their unique working environment.”
This last aspect, ill-suited trucks, is critically important because buyers could end up buying or renting far more trucks than they need, but there is also a caveat with these software tools. While the leading trucks producers/providers like Linde, Toyota, Crown, Jungheinrich and Briggs offer a wide warehouse truck range they may be lacking in the most suitable truck for the unique working environment and because they are keen to sell only those trucks in their portfolio their recommendations may leave potential clients short-changed. As an example, when robotics maker, Cincinnati Milacron, put out to tender for a new truck fleet the results varied from the need for a 24-truck fleet to 16 trucks. The winning tender was for the 16-truck fleet made possible because it included the remarkable versatility of articulated forklifts.
Despite this caveat, such fleet maintenance software tools are very valuable. “By being involved in the warehouse design process,” continued Mark Murfet, “we can help clients to save hundreds of thousands of pounds by helping their operations achieve more with less space and a smaller materials handling fleet.”
Now there’s a thought.
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