Make sure you get the best deal
January 1st 2011 In the words of a popular advertisement - go compare! That’s the advice,among many other nuggets, offered by manufacturers & suppliers to help you get the most out of your lift truck purchases
After putting procurement off during the recession, many of you are likely to need to buy lift trucks this year. This feature acts as a refresher with manufacturers offering advice on what pitfalls to avoid when procuring lift trucks and how you can best use materials handling procurement to gain real value for money and increase productivity for your business.
Ken Dufford, vice president Europe, Crown Lift Trucks
“The initial purchase price is just a fraction of what you should be worried about, more often than not the least expensive solution is not the best. There are a lot of not-so-soft factors such as downtime.What were soft factors in the last few years are becoming firm and measurable. You need to look way beyond the truck itself to get total cost of ownership.
“Through Crown InfoLink, users can have measurable data which shows the cost of downtime, poor battery change procedures etc.”
Simon Brown, managing director, Translift Bendi
“Used equipment prices are going through the roof. The buyer has to weigh up escalating used equipment costs and availability and the price of new equipment and make what can be a difficult decision. An additional potential pitfall is macro managing budgets. If we look at materials handling holistically we can knock hundreds of thousands of pounds of savings out.We see customers with three of four times the space they need. If they simplify and condense the warehouse space they get more bang for their buck.”
Martin McVicar, managing director,Combilift and Aisle-Master
“A lot of companies have been reluctant to sign up to long term contracts in the last few years, and instead have been extending existing contracts. It’s getting to the stage where if they shop around for new equipment they could get a competitive price. Customers are also looking harder at truck utilisation.
“It used to be that articulated trucks sold mostly on the basis of narrow aisle performance. Now companies using both reach trucks and counterbalance models in a warehouse are looking at articulated trucks as a way of reducing the number of machines needed to get the job done.”
Tony Wallis, operations director, Toyota Material Handling
“We find customers are open to having a more developed relationship with suppliers because they realise this is the best way to reduce driver and damage costs. For example, at IMHX we had a wood manufacturer come in and sit in on our Toyota Production System masterclass. As a result they decided to think again about configuring the material handling set up for their new warehouse.”
Craig Johnson, marketing manager, Jungheinrich UK
“It is vitally important from the outset of the relationship that the user is confident the supplier has the values to deliver the kind of results he is looking for. For example, every forklift company can talk a good fleet management proposal, but few have the capability and the appropriate data in a format from which effective management decisions can be taken that improve operational and delivery efficiency.
“Users will only be able to derive maximum cost and efficiency gains with measurable values from fleet management systems if they have an effective communication strategy with their truck supplier and then users need to be sure that their truck supplier actually has the desire to deliver results that might appear counter-productive to their profit stream. By this I mean, a truck audit will often recommend reducing the fleet size which, on the face of it, is not in the supplier’s best interests.
“Users should also look to source forklift truck fleets from organisations that are not only capable of supplying a full line-up of products – from counterbalance to warehouse machines – but who can also demonstrate that they have the infrastructure in place to be able to guarantee the highest levels of service. “There is little point in any manufacturer pretending that trucks do not break down because, from time to time, they do.
The things that differentiate a good supplier from the others are, first, the frequency between technical problems and secondly the ability of the supplier to have an engineer on site in the shortest possible time to put faults right when they do occur.”
John Maguire, sales and marketing director, Flexi Narrow Aisle
“Some customers are trading down and going for cheaper brands. They are taking a risk because if you buy or rent now you are committing for 5 years or so, and you’ll be stuck with this equipment when we are well out of recession.
“Another problem is that customers are not getting finance. It has got worse in last three or four months, so the credit crunch is still going on. If you are a cash buyer you will get a better price than going contract hire but cash buyers should make sure they get service contracts and prices agreed before they buy.”
Paul Watson, UK sales manager, Doosan
“There is massive choice out there. Go to the market, don’t just go with your usual supplier or the first one that comes along. Secondly, look at total cost of ownership. Look closely at local servicing arrangements, ask questions such as - where are the spare parts kept? Its about the whole package, not just the forklift.
“You’ve also got to consider how you make the purchase. For light use, it will probably make sense to buy outright, as there is likely to be a saleable asset after five years or an asset that can be worked for a longer period. For medium and heavy duty use, go with contract hire. Let the supplier take the risk on second hand values for these trucks.”
Gino Van der Auwera,Hyundai Heavy Industries Europe
“Try to avoid taking purchasing decisions primarily based on purchasing price of the truck. The euphoria of the cheap price evaporates when troubles arise. Increase productivity by buying the right truck for the right application, emphasising durable lift trucks with lower service costs and lower downtime.”
Graham Jones, sales manager, Barloworld Handling
“First, the customer should define his needs - the application, the hours and the spec. You need to know what you require as a core fleet and be able to supplement that as necessary with short term hires. You need to focus on the details. For example, on tyres, it’s not about the sticker price, it’s about getting long term value for money.
“Fleet management tools are also key because they allow the user to manage costs over the duration of the contract and check that supplier is delivering what he said he would at the start of the contract. In short, the user needs a trusted partner rather than a simple supplier.”
David Bunting, area business director - northern Europe,Yale Europe Materials Handling
“As industry recovers from recession the demands placed on equipment will inevitably increase.Many companies, quite understandably, held back on replacing or acquiring new equipment or downsized their fleets during the uncertain economic climate. The result of this could be that a customer’s current fleet profile may not match the upturn in utilisation. With many manufacturers facing extended lead times it is important to have an understanding of the current and predicted fleet utilisation and whether the existing fleet profile matches. “With the majority of lift trucks being procured on a rental basis it is also important that customers are clear about the true costs and terms of any agreement they enter into. Often the focus is on the weekly rental rate which, while important, must not distract from the requirement to match the contract with the customer’s needs.”
Andrew Daly, Linde MH UK sales & marketing director
“When it comes to purchasing fork lift trucks, doing some homework beforehand is imperative to select the best vehicles for the job in terms of space, application and safety optimisation. Key considerations in the procurement process must include a sound understanding of the properties of the materials to be handled, such as load and methods used to store, ship and receive materials, as well as familiarity with the variety of truck options available. Also, avoid the temptation to just reorder the same as last time. Product innovations are developing at such a pace that there may well be something new on offer that will deliver greater productivity over the last product line ordered.
“An important consideration in truck procurement is the scope of the job.Maximum weight and dimensions of loads to be handled together with the maximum fork height needed for stacking and racking are crucial determining factors for vehicle selection. Truck lift capacity and load size need very careful planning as bigger is not necessarily always better when it comes to effective warehouse management. A smaller truck with additional lift attachments might be more productive and practical than a higher capacity truck whose size is unable to operate in small aisles.
“Finally, the dealer’s expertise can be invaluable in advising on the best fleet for the job. Used trucks by no means equate to old trucks. Quite often, high volume operations purchase new trucks and trade them in every few years which makes these trade-ins great purchases for other customers. Used trucks can be particularly cost effective in low use operations where very little wear and tear is being placed on the vehicle.” More articles from Handling & Storage Solutions: | 
