Tuesday, August 12, 2014

Five Mistakes to Avoid When Selecting Material Handling Equipment

Selecting the right material handling equipment (MHE) is often overshadowed by the hundreds of other decisions that come with opening a new warehousing facility. However, selecting the wrong number or type of equipment for the operation can be costly for companies.

Before selecting MHE, companies should do a thorough investigation of their current and future business needs, while avoiding the five mistakes outlined below.

  1. Not properly thinking through specs. Do a deep dive of your operational requirements to ensure you are covered for all handling types, especially the infrequent ones. For example, you might miss the fact that a small portion of loads come in shipping containers, and require MHE with a shorter mast to safely enter and exit the container. 
  2. Not foreseeing business changes. Study possible developments in your company’s future to ensure proper MHE selection. You might choose to structure a 60-month lease for 20 pieces of equipment, and then find out the next year that volumes are dropping and you only need 15 pieces of equipment.
  3. Not building flexibility into a fleet. MHE selections sometimes are based on a company’s current handling needs, but what if next year you take on new business or add new products that the MHE you selected can’t handle? Now you are stuck buying more equipment, resulting in a fleet of underutilized equipment.
  4. Not planning properly for battery charging. Companies often focus on the trucks themselves and overlook other requirements to support MHE. For example, companies that select electric equipment must think about proper sizing and setup of a battery charging area. They also need a water source nearby for eye wash and battery watering needs, and it’s imperative that the building has adequate electrical service to handle the quantity and type of battery chargers. 
  5. Not negotiating a preventative maintenance agreement. Understanding what is and isn’t included in your maintenance agreement is essential. Companies opting for a fixed maintenance package may overlook expenses that go beyond the fixed monthly rates, such as tires and other wearable items. Having a good understanding of all maintenance expenses enables managers to better predict total operating costs.


1 comment:

  1. hi. i really appreciate your post. this is a very good idea. now, i know on how to handle my Material Handling in a proper way :) thanks a lot. keep on sharing, because your blogs are very nice and helpful.

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