Eliminate hidden costs
February 1st 2009

Inefficient use of batteries, fuel and tyres might seem obvious candidates for firms seeking fleet management savings, but Briggs Equipment says this is where unneccessary costs can hide

The double whammy of the recession coupled with the credit crunch is a challenge to any business for 2009.

Firms need to focus on becoming leaner and meaner and to raise the bar on managing their materials handling cost base by taking a closer look at the hidden costs of running their fleet. In doing so, managers could be saving their companies thousands of pounds on the bottom line.

Tony Rooney, sales and marketing director at Briggs Equipment, says that the opportunity lies in working in collaboration with expert suppliers.

When sales become increasingly challenging, what can you focus on to dramatically improve the health of your business? Through working in partnership with strategic supply chain partners like Briggs Equipment you can minimise fleet running costs and maximise productivity.

Battery efficiencies A typical 50 Hz battery will store around 35 kilo watts of energy and can take 12 hours to charge, so by increasing the efficiency of charging and improving battery run times, savings in electricity consumption of up to 22 per cent can be achieved.

Energy efficiency is predominantly achieved through increasing the efficiency of battery charging. Charging times can be reduced by up to 50 per cent through the use of high frequency (HF) chargers with air mix circulation. These smaller wall mounted units can be used on a range of batteries, they require less topping up and facilitate communication between the battery and the recharger to ensure optimum recharge and improved battery life. If new charging technology is used together with a single point filling system, maintenance times can be reduced by as much as 70 per cent, resulting in significant savings in labour costs. Briggs works closely with its strategic partners to address the needs of their customers. Its partnership with EnerSys enables customers to analyse exactly where energy and money is being wasted and therefore take action. For some businesses these cost savings can be substantial: for a standard mixed fleet of 18 warehouse and counterbalance trucks, with a total of 36 batteries, cost savings of £30,500 are achievable, with electricity savings delivering 80 per cent of that figure*.

Fuel costs Fuel costs are another concern. A larger IC engine lift truck can use 10 to 20 litres of fuel per hour, and some drivers can use up to 30 per cent more fuel than others, simply by the way the machine is specified and the way they drive. By measuring and controlling fuel consumption more thoroughly, you will reduce costs and improve the efficiencies of your drivers. For example, maximum torque can be achieved at just 60 per cent of engine speed; so there is no need for drivers to operate at maximum engine speed or to over rev the engine.

Tyre savings Tyres are expensive items that are subject to damage, which can eat up large proportion of a company's maintenance budget if damage occurs. A set of tyres can cost between £500 for a two tonne machine up to £6,000 for large specialist trucks. What's more, in arduous applications with rough surfaces it is possible to get through up to four sets of tyres per year. In order to extend tyre life, trucks can be fitted with intelligent devices such as tyre protectors and transmissions.

By preventing forward and reverse selection while the truck is in motion or at high engine rpm, this system helps maintain traction, correct bad driving and reduce tyre and transmission wear. Briggs Equipment has found that this not only extends tyre life by up to 50 per cent, but also protects the transmissions from unnecessary damage.

Flexible hire contracts A materials handling supplier that takes a long-term, strategic approach to managing its customers' business can deliver flexible solutions that maximise performance, while significantly reducing costs during an economic downturn. For example, Briggs' new FlexiHire product helps customers to de-risk their business with short, flexible contracts at the same time as reducing their cost of running the fleet year on year by 5-10 per cent. The no penalty withdrawal options, coupled with a sliding scale payment plan, are well suited to difficult business conditions.

Rapid parts delivery Finally, research by Briggs Equipment shows that parts availability ranks as one of the most important aspects of service provision. Speed of delivery, quality of parts and pricing will all have an impact on running costs. A supplier with a standard 98 per cent next day delivery capability will provide a flexible and responsive service so that equipment downtime is reduced to a minimum. Through its direct ship service, Briggs has availability of over €35 million of parts in stock for next day delivery, keeping downtime, and therefore costs, to a minimum.

*fleet of 8 trucks, with 36 batteries, 9 reach truck, 9 counterbalance (EnerSys data).

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