Showing posts with label total cost of ownernship. Show all posts
Showing posts with label total cost of ownernship. Show all posts

Wednesday, December 21, 2016

Key Questions to Ask When Purchasing Material Handling Equipment


Selecting the right forklift or lift truck for your business is a complicated process that requires more than a simple comparison of models, specifications and/or prices.  The appropriate fit depends upon the application and environment in which the lift truck will operate, so it’s important to carefully consider the unique needs of your business, the details of the application and the work environment. When properly selected, a forklift or lift truck is capable of increasing productivity, throughput and storage efficiency, as well as lowering overall operating costs.  So, with that in mind, let’s consider 3 areas of importance for selecting the right forklift or lift truck for your business:

1. Work Environment

The situational conditions of your work environment are key determining factors when it comes to selecting an appropriate lift truck as the surface of your floors, location and layout will all influence model selection, especially in regards to vehicle fuel and tire type.  Is the surface of your floor smooth or rough?  Is it littered with debris?  Will the vehicle operate indoors, outdoors or a combination of the two?  What are the dimensions of your aisles, shelving, entrances and ceilings?  Is your building equipped to filter out additional internal combustion emissions? 


2. Application

Within each category of lift truck, whether its forklifts, reach trucks, order pickers, dock stockers, straddle stackers or pallet trucks, there are a variety of configurations and subtypes, each of which are suited to specific tasks and applications.  To determine what model type best suits your business, be sure to consider load composition (solid or liquid), load dimensions (length, width, height, shape and weight), pallet and container types (standard, short or long pallets, bottomless pallets or bins, drums, etc.) and the distance traveled between loads.   


3. Operating Costs

The cost of purchasing a lift truck go well beyond the purchase price, so it’s important to consider the total cost of ownership, which refers to sum of all the expected expenses over the lifetime of the equipment.  A variety of factors influence a given model’s total cost of ownership including the purchase price, financing fees, fuel costs, overall productivity, the frequency and cost of regular service and maintenance, and the possibility for unexpected repairs and downtime.  

One way of determining a model’s total cost of ownership is to calculate its CPM or its cost per pallet moved, which offers insight into the relative value of each model while controlling for differences between facilities.  To calculate the CPM, divide the daily operating costs by the number of pallets an operator is capable of transporting per shift with a given piece of equipment.  An alternate method of cost calculation involves calculating adding up the total cost of operating the equipment and dividing it by the total hours used to determine the cost per hour.  


As you can see, it's extremely important to find a competent dealer with the knowledge and experience needed to appropriately answer all of these questions.  For help finding a Stärke dealership near you, please visit Stärke's find a dealer page today!

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Local: (905)-227-7554  |  Toll free: 1-877-435-4352


Friday, November 11, 2016

Does Manual Lift Equipment Still Fit in the Modern Workplace?


With the leaves beginning to turn and the start of the school year long since past, we’ve decided to go back to the basics with an article on the most basic forms of material handling equipment: manual or hand-powered lifts and equipment.  At this point, you may ask yourself: why devote an entire article to such a topic?  After all, few fundamental changes have occurred to the basic designs or operation of these units for over 50 years. 

It's true that despite a long history with roots dating back to the industrial revolution – or, maybe, because of it – manual material handling equipment is often glossed over in favor of more advanced, powered units.  But this lack of attention belies the importance of manual lift equipment in many industrial and retail work environments.  Should you have an occasion to visit a nearby warehouse, manufacturing facility or retail operation, I challenge you to find one without a manual lift in some form or another, whether it is a manual pallet jack, manual straddle stacker or otherwise.

This is because manual lifts are, and will continue to be, an essential part of warehousing and logistics for any number of reasons.  The first, and perhaps most important, is the simplistic yet effective manner in which they were designed to function.  Due, in large part, to the absence of complicated moving parts – such as those found in an electric motor – manual lifts do not require extensive training or maintenance to operate on a regular basis, which make them ideal introductory units for low volume applications and/or inexperienced operators.  Rather than manually move boxes, loads or equipment to avoid the additional costs associated with powered units, manual lift equipment provides a simple and effective material handling solution.

This brings us to the second reason that manual lift equipment refuses to gently fade into the background: the cost.  For operations or businesses early in their development, or for those with low volume needs, it makes little sense to make an investment in a powered lift that isn’t completely necessary.  Without sacrificing functionality or quality, manual equipment options provide a solution with low acquisition and operational costs for the lifetime of the equipment.  Beyond regular lubrication and inspections, these units require little attention in most applications and may last decades longer than their powered counterparts.  

As you can see, there are many reasons to consider using manual lift equipment but, it should be noted, a major caveat applies to any point made regarding the cost of this equipment.  Despite the lower cost of ownership, there is an opportunity cost to be considered with these units, especially for higher volume operations, where faster and more efficient electric models offer greater throughput, productivity and efficiency, all of which are directly correlated with overall profitability.  In such instances, the added productivity of an electric unit more than justify the greater costs associated with their acquisition, operation and maintenance.

If many of these points remind you of your business or operation, consider Stärke Material Handling Group for your next equipment purchase. Our offering of manual material handling equipment includes a range of manual pallet jacks, as well as a manual and semi electric straddle stackers.  We would also like to know how you view manual lift equipment?  Will it continue to have a prominent place in the workplace as we continue the process of industrial automation?  Leave a comment below and join the conversation! 


Local: (905)-227-7554  |  Toll free: 1-877-435-4352

Thank you for reading our blog. Please remember to +1, like, share, comment and follow if you enjoyed this post!