Friday, January 22, 2016

Vehicle Management Systems

The “new” economy is putting significant pressure on all businesses and management has to do more with less. Job reductions make the headlines, but thinner budgets, productivity pressure and an increased demand for action create just as much havoc as downsizing middle managers and supervisors.
In today’s economic environment, it is more critical than ever to shine a spotlight on your highest cost centers and evaluate readily achievable savings opportunities without sacrificing quality or productivity. Every day your business is paying significant amounts of money to own and operate your forklift fleet. The cost for each truck can be over $250,000 per year – inclusive of operator salaries, benefits, overtime, truck leases, maintenance, damage, and battery/fuel expense. For a 50 vehicle fleet, that multiplies to over $12.5 million per year!
Traditional fleet management solutions, like outsourcing maintenance and parts ordering, help make costs predictable, which is beneficial, but does not necessarily provide a meaningful way of reducing costs in real time. Achieving productivity and cost benefits through the deployment of technology is a well-established concept, but can it be applied to forklift fleet and operations management? Can behaviors and costs that have long been considered just “part of doing business” be changed? The answer is YES!
Common Industry Challenges
Although companies and industries differ, a number of commonalities exist:
Forklift drivers are typically the highest paid hourly employees in the supply chain. When you add in overtime, benefits, incentive pay and temporary staffing, the costs can exceed $70,000 per operator per year. If you run three shifts, that can translate to over $200,000 per year PER forklift.
• Capital costs for purchasing new vehicles is a significant budget line item. There are continual requests for new trucks, but when you walk the floor there always seem to be vehicles not in use.
• Facility damage caused by forklifts can exceed several hundred thousand dollars per year. Typically, it is extremely challenging to identify who caused the damage. Without accountability, it is very difficult to reduce damage in any meaningful way.
• The goal of a distribution center or manufacturing plant is to move material to the right place at the right time, as efficiently as possible. Detailed route, speed, and safety data is generally unavailable without extensive and continuous industrial engineering efforts.

The latest technology to increase efficiency and production while decreasing maintenance costs and overall cost of ownership, without compromising operations is available.
These products are effective for any size fleet and some are more comprehensive, offering solutions for companies with one location for all forklifts, and other companies that share forklifts between locations.  The technology provides real-time, actionable data to those who can make decisions and drive efficiency every day. Management can adapt and respond to a wide range of cost savings opportunities.

You can reduce costs in these areas:
labor cost, fleet size, planned and unplanned maintenance,  forklift damage, and insurance.

These products can be added to existing forklifts or ordered with new forklifts, so you can start realizing the benefits of the vehicle management systems right away.

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