Finding Hidden Cost Savings in Your Material Handling Operation
The relentless pressures of inflation bearing down on businesses today have put the search for cost reductions high on the agenda of most companies. As we all battle with National Insurance and minimum wage rises, supply chain and fuel price volatility as well as health & safety and environmental legislation, few can afford to ignore any potential savings that ma be sitting unrealised within their existing operation.
Finding such savings within material handling fleets has become more and more important for our customers at Aprolis. So much so that we have developed a dedicated ‘Cost Reduction Audit’, specifically designed to ensure that every possible penny of savings sitting within a handling operation can be identified and realised.
Identify Quick Cost Savings Across Your Fleet
The first step is to identify the ‘low hanging fruit’, incremental changes that can be easily and quickly introduced into the current handling operation, yet collectively yield worthwhile gains. This includes looking at things such as fuel usage, operator best practices, equipment management, material flow and storage space utilisation.
Build a More Flexible and Cost-Efficient Operation
Second is the application of some flexible thinking. This is generally where the biggest wins are to found. Many fleets are either not as dynamic in their ability to respond to fluctuations in business demand as they could and should be, or the equipment itself is not the perfect fit for its application. Sometimes even both. Keep an open mind here, as a surprising number of improvements can often be found, even within a mature fleet.
With our customers at Aprolis, we not only apply such flexibility to equipment changes throughout the term of an agreement, but also to the provision of responsive support packages which can be included within contract or delivered on a time plus materials basis. We even hold an extensive range of short-term hire and refurbished used equipment in stock, specified to enable us to meet the specific needs of seasonal industries.
Increase Warehouse Capacity Without Increasing Overheads
Improving the use of existing facilities and infrastructure is another area where we consistently identify new opportunities. In many cases simply reconfiguring racking and increasing storage density can bring the effective benefits of a larger premisses, without the need to relocate or increase overheads.
Such a flexible approach can also enable early access to Innovative new technologies and product ranges, without the need to wait for contract renewal.
Reduce Energy and Equipment Costs
Leading manufacturers are responding to market conditions too, such as CAT® Lift Trucks with their new ‘EQ Line’ offering. A range specifically designed to bring premium handling quality to low and medium utilisation applications, at a lower price point.
While there is little a handling provider can do to control the volatility of fuel pricing itself, reassessing power sources across a handling fleet can help to usefully lower overall energy use. For example, there are a number of procurement-friendly ways Aprolis can smooth the path to an electric fleet that help offset initial infrastructure set-up costs and expedite the cost saving benefits.
Improve Productivity Through Automation and Training
Automation offers another opportunity to streamline the handling process by removing the limitations of operator shift patterns and bringing the advantages of computer optimised scheduling. Aprolis now has over 300 automated assets in operation across Europe, covering a range of sectors This provides a useful benchmark for potential cost savings.
Although often overlooked, dedicated training programmes can yield surprising cost reduction benefits too. Improved driver technique, for example, can notably lower fuel, maintenance and material damage costs. Most significantly it can dramatically improve on site safety, something that has the potential to be one of the greatest costs of all!
Make Smarter Decisions with Fleet Data
Understanding exactly where cost is incurred and the precise value it is returning, is a powerful tool for management and procurement decision makers alike. This information often exists within the existing data of the business. Telematic fleet management systems make accessing this data immediate, relevant and meaningful. Our audit helps identify where this could bring advantage to a business. It can also provide early visibility of underperformance and risk.
With so much to explore, now really is the time for companies to make their handling fleets work harder in supporting their efforts to reduce costs. The good news is that Aprolis’ ‘Cost Reduction Audit’ is entirely complimentary and obligation free, so opening the taps on those hidden cost savings just got a whole lot easier and closer.
