Capital Equipment News February 2016

COMMENT

MATERIALS HANDLING SOLUTIONS THAT MAKE SENSE

T echnology has improved over time to ensure that forklift trucks, winches, cranes and all manner of materials handling equipment operates safely. How- ever, advanced technology of equipment isn’t the only solution. The most critical area of materials handling still requires know- how when it comes to accurate selection, operating and maintenance. During economic hard times fleet managers have several options when it comes to equip- ment maintenance. One is to be extra diligent in making sure preventative maintenance gets done so they don’t have to pay extra for unex- pected downtime. Another is to save the time and cost required for periodic maintenance and deal with issues as they occur, possibly rely on underutilised equipment as back up for replacement. Cost saving exercises is the most popular avenues that companies adopt when times are tough and one of the ways used by many companies is to partner with their equipment

portunity for materials handling companies to offer usage programmes with flexibility to change or return equipment during the con- tract period. Customers are looking more towards access to materials handling ver- sus ownership, which is a means towards a healthier balance sheet and operational flex- ibility. Service is expanding beyond mere equip- ment upkeep to ensuring the right equipment is used for the application which is a major factor in ensuring that the equipment is not operated beyond its safety design criteria, thus reducing unnecessary failures to the equipment as a result and also extending its economic life. With the spectrum of service requirements broadening, purchasing decisions are moving further up the line to the CFO levels that are no doubt looking at the short term benefits at the right price.

supplier, especially if they can provide a full service from financing to maintenance. The fundamental business changes customers experience through expansion, consolidation, mergers and acquisitions, provide opportu- nities for equipment suppliers to be creative and innovative to remain linked to their cli- ents. The goal is for materials handling com- panies to help their clients to become more productive using their equipment, their parts and their services, specifically by suggesting savings opportunities as they discover them within their operation. These suggestions can stretch from maintenance and operational im- provements to facility changes, material flow and operator education as well. Financing flexibility is another key area, con- sidering the economic insecurity many busi- ness people still feel. Customers are looking for more flexible options in acquiring equip- ment other than straight purchases or the tra- ditional leasing options.

Rather than straight rental it may be an op-

Pierre Sanson, Editor

CAPITAL EQUIPMENT NEWS FEBRUARY 2016 2