Cliff Holste, Materials Handling Editor

The News: Hyster has released a new brief report containing a list of top 10 strategies they say can help you save money on fork truck operations.

SCDigest Says:

Interest rates are generally very low, and there are still, even in this environment, many options for financing lift trucks.  Make sure you are looking at the full menu of such options to ensure you are getting the lowest cost or the terms that are right for you. What Do You Say? Click Here to Send Us Your Comments

Why It's Worth Noting: The report mostly covers the basics, which can sometimes be overlooked. At a high level, it also steers you towards some thought provoking material handling management strategies in the process, including some good ideas for flexible financing options that take advantage of the current situation, as well as how you can position your operation to be ready for the upturn.

The Story: Directed finding ways to reduce MHE related costs in the current climate, Hyster’s list includes management strategies that many manufacturing and distribution managers concerned with maintaining a safe, cost efficient lift truck operation will find worthwhile.

The following is a short summary of each of the strategies:

Review Energy Costs:  The booklet suggests that by conducting an energy audit you can determine how best to reduce energy waste. According to Hyster you should contact local, state, and federal agencies for information on incentives that are keyed to reducing energy cost.

Capture Safety Dividends: By reviewing your safety record with your insurance provider, you may find that you are entitled to discounts for ergonomic and safety programs that would otherwise go unused.

Explore Financing Options: Interest rates are generally very low, and there are still, even in this environment, many options for financing lift trucks.  Make sure you are looking at the full menu of such options to ensure you are getting the lowest cost or the terms that are right for you.

Improve The Balance Sheet: The booklet provides several suggestions for improving your balance sheet including reducing payments by opting for better flexible financing and receiving tax benefits through MHE ownership.

Investigate Purchasing Programs: Given the current market contraction and resultant pressure on pricing, now may be your best opportunity to lock in favorable prices for future needs by taking advantage of forward-order programs. However, make sure that you are receiving “Preferred Pricing”, which is typically based on volume.

Review Maintenance Options:  Everyone knows that proper preventative maintenance and lift truck reliability go hand-in-hand.  However, PM often falls casualty to cost cutting programs.  A better approach, described in the booklet as “usage-based programs” are worth considering because rates are based on actual truck hours used instead of elapsed calendar time.

Explore Fleet Optimization:  Just by taking a more proactive management approach, many medium to large size operations can realize significant savings. The booklet explains that you can start by evaluating how effectively each piece of equipment is being utilized in your facility(s).  You may find that some re-deployment of underutilized equipment is warranted and that replacement of older high maintenance units is justified.

Utilize Telemetry Solutions to Monitor Material Handling Assets: The idea here is that in order to make intelligent management decisions that drives higher levels of productivity and accountability, you need constant and accurate real time information. In its booklet Hyster explains that this advanced level of monitoring simply cannot be performed by human resources.

Implement Fleet Management:  Here Hyster provides a step by step process for gathering data that will enable you to identify savings opportunities. You will probably need assistance from an independent industry expert to guide you through the data gathering and analysis stage, and to properly identify savings opportunities.

Review Parts/Aftermarket Solutions:  A quick Google search reveals that there are lots of good parts providers and programs available. Check out local sources that offer competitive pricing, delivery, and dependably quality service.

The report can be found at: 10 Strategies to Reduce MHE Costs.

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