Research can lead to best buys
January 1st 2011 Many of you have gotten out of the habit of procuring trucks in the last few years but as your hard pushed assets eke towards the end of their lives, the chances are fleets will increasingly need to be replenished this year.
The key thing here is achieving maximum bang for buck. The article on pages 10-11 carries advice from a welter of top lift truck manufacturers outlining the pitfalls to avoid and tips on how to make the best decisions. We’ve summarised this advice into the 10 points below, offering tips and pondering key questions, as a refresher guide to help out if you are opening up the wallet, wafting aside the moths and preparing to spend.
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Shop around Don’t just go back to your current provider. If you have the time shop around, the intense competition in the market should mean you get a good deal. Lift trucks are improving all the time. After a little research, you may be surprised at the progress that has been made in fuel efficiency, ergonomics and safety.
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Evaluate your needs It is tempting to buy trucks on an adhoc basis but to maximise value, you should use materials handling procurement to achieve business aims and this means having a firm grasp on your processes and the impact they have on the products you have, the products you need now and those you will need in the forseeable future.
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Don’t forget service arrangements All trucks break down, so make sure you are covered. Look carefully at the details here. How much will servicing cost? Where are parts stored? Does the manufacturer have local representatives who can respond quickly? Who is the service provider and how good are they? Ask for stats to back up claims of service excellence.
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Think about the futureWorkloads are fairly subdued at the moment so the need for warehouse space and the demand for trucks is likewise dampened. But don’t rule out a recovery, perhaps some time this year. It may pay off to have a contingency plan in place to rapidly take advantage of an upturn in the economy. This includes being able to quickly procure the right trucks for you. A little research now could save a major pain later.
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Consider total cost of ownership The ticket price is only the beginning. Everything from operator comfort to the damage done by trucks in the warehouse has a measurable monetised value and should be taken into consideration when buying trucks.
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Do you need a partner? Buying a truck can be a transactional affair. You pay your money and take the truck and the rest is down to you and other parties you want to involve. But increasingly some manufacturers are marketing themselves as materials handling partners. Consider if you want a truck manufacturer, service provider and warehousing consultant rolled into one.
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Used or new? The price differential between used and new trucks is not what it was but it is still worth considering if a refurbished truck, at a significant discount, will be able to do a job for you, especially in a non-demanding work environment.
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How risky is it to trade down? Does a big name brand matter? Maybe... You pay more for it but what you tend to get is reliability, better engineering, the most innovative bells and whistles etc. Opt for a cheaper brand and you will save on the ticket price but the benefits are not, arguably, as assured.
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Buy outright or go for contract hire? If you are cash rich it might be an idea to buy outright.With used truck prices high you could have an saleable asset after a few years. Then again, contract hires allow you to spread the cost and means the provider takes the risk on the saleability of the truck when the contract is up. Horses for courses.
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Select a niche player or a full range supplier? Niche manufacturers can often offer best in class expertise but a full range supplier means one face to talk to across the whole operation if issues arise and should provde a more integrated solution.
Simon Duddy, Editor More articles from Handling & Storage Solutions: | 
