Forklift fleet cuts distributor's costs
Reach and pallet trucks pay off in durability and uptime for Associated Grocers.
Staff -- Modern Materials Handling, 10/2/2001
Employees move more than 75,000 cases of product into and out of a Miami, Fla. warehouse each day for Associated Grocers. That's a demanding workload, requiring the right combination of people and equipment.
In this business, equipment durability drives success. And success equates into cost savings for this 500,000 square foot facility. Vice president of operations Christopher Miller says a forklift fleet with more than 60 lift trucks has created cost savings for Associated Grocers.
Eight reach trucks, including six used in a freezer environment, earn specific praise from Miller. "This reach truck goes beyond speed and efficiency," he says. "We really love this truck's durability. It's built to last and that's a necessity in our business."
Durability means greater uptime. "I guarantee that we are saving, even though the up front costs are higher, a minimum of $3,000 monthly or $36,000 a year," Miller emphasizes. "Remember we're talking raw cost. We're also not talking about the cost of operator downtime that has been saved."
Major losses occur when a lift truck experiences downtime. "For example, when you operate 24 hours a day like we do and lose a truck for three days, you are looking at 15% of the cost of the truck for that month. That's 15% of the leased amount not utilized," Miller explains.
All Associated Grocers equipment is on a 4-year residual lease with full maintenance. Planned maintenance and parts availability are major advantages.
When the reach trucks are properly maintained, "they have a great ratio when it comes to uptime," says Miller. Parts consignment and parts availability also earn high praise from Miller.
"Many times with other companies we would get stuck with overnight expenses when ordering a part." With this supplier, "we have never had that problem," he says. "We view the parts consignment program as helping both of us."
Thirty-nine pallet trucks of two designs handle the bulk of the transportation and picking work. Most trucks have 93-inch double pallet forks. The fastest picking workers use the vendor's PC model pallet truck. "They absolutely love the fact there's no stepping up. They like to be able to walk through," Miller says.
Industry time studies indicate this model pallet truck reduces the number of steps, resulting in a time saving for pickers. That's important when some of these workers may pick upwards to 3,500 cases per shift.
"One study says you save 10 seconds every time you pick up a case. I know that doesn't seem like much, but if you're picking 2,000-plus cases per shift - multiply that by 10 seconds and you do generate a considerable time savings. It's especially important to workers if they are paid by the piece," Miller says.
With more than 165 operators, Associated Grocers has a total training program. Combined are its own specific program coupled with training materials from the forklift vendor. "Our people are forklift certified from day one," says Miller.
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