When it comes to optimizing your material handling equipment fleet, visibility and planning are key. You would not operate a lift truck with obstructions blocking your view. So why do many operations managers approach fleet management and cost-projections without reviewing critical information?
In the material handling industry, uptime is essential. However, much time is spent on fixing equipment and being reactive rather than developing proactive strategies that make your operation more efficient, productive, and profitable. Here are five fleet management best practices to keep in mind to achieve that goal:
You likely know how many forklifts and other types of material handling equipment are in your fleet, but if you do not know the costs associated with each, you do not have all the data needed to operate your fleet in the most efficient manner. Determining the expenses for each piece of equipment will give you a complete view of total costs, as well as areas where savings can be realized.
Equipment performance data can provide information such as which tires are performing best, which equipment is operating most efficiently, and how long equipment is out of commission based on how long it takes your shop technicians to complete maintenance and repairs. Here are some metrics to monitor for each piece of equipment:
Tracking and analyzing this data will give you a clearer picture of the total cost of ownership for each piece of equipment as well as help you identify costs you might not currently monitor. For example, you may own a piece of equipment that is only used to meet seasonal demand. After comparing cost data for yearly-maintenance, insurance and repairs, you may realize renting is a less-costly approach. What you don’t know can hurt you and your bottom-line. Having visibility into this data, enables you to make more strategic decisions about your equipment fleet and implement changes that improve efficiency and achieve cost savings.
Buying material handling equipment as needed and running it into the ground is a haphazard approach. A proper fleet management plan will optimize your use of the equipment and the personnel who operate it, while also maximizing any potential return through resale.
Depending on your industry, your material handling equipment may be your hardest-working fleet. If you schedule regular maintenance for cars and trucks, why wouldn’t you do the same with your material handling equipment? Avoiding downtime keeps your company up and running and your customers satisfied. Breakdowns from neglect will only result in extended downtime, and the repairs typically are far more expensive than the cost of regular maintenance. Neglect of equipment not only effects your bottom-line but your people too. Keeping your equipment well maintained ensures your employees are operating safe equipment.
Unlike reactive maintenance — fixing something after signs of trouble appear — proactive maintenance can prevent problems that otherwise would grow in scale. It can also result in improved fleetwide fuel efficiency. Proactive maintenance includes oil changes as well as checking (at a minimum) the following systems:
A well-maintained fleet also benefits your operators. Brake or engine failure or a flaw in the steering system can lead to serious injuries and even death. Another advantage of preventive maintenance is that you determine and control the downtime for specific pieces of equipment and can create a schedule that works best for your business.
Regularly reviewing data provided by fleet management software is proven to positively impact fleet operations and a business’s bottom line. With a tight labor market threatening productivity, putting technology to use can make a real difference in your profitability. Software capabilities can help you do the following:
There are many aspects to managing a fleet of forklifts and other material handling equipment. Using different suppliers for buying new and used equipment, rentals, maintenance, repairs, parts, software, warehouse systems and other needs is inefficient by definition. You have to contact each one, outline your needs in detail and pay multiple entities — just for starters. To optimally implement fleet management best practices, vet potential partners and find a “one-stop shop” that:
Whether you are in the construction industry or operating warehouses and distribution centers, managing your equipment fleet can be challenging. Following these 5 best practices for proper fleet management will help you realize efficiencies in several key areas. Optimizing your equipment use and your operations — and improving your bottom-line —are worth the effort.
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