Outsourcing lift truck maintenance
Contract maintenance of lift trucks offers an attractive alternative to an in-house department and the related costs.
By Megan McCoy, Associate Editor -- Modern Materials Handling, 9/1/2003
There's no question that maximum lift truck uptime is one route to high productivity in the warehouse and distribution center. But how that can be accomplished most cost effectively is a question that perplexes many warehouse managers.
For many, a full-time trained lift truck technician is not in the budget. In those cases, contract maintenance is the way to go.
Contract maintenance is the ultimate in outsourcing that ensures lift trucks will get the attention they need on a scheduled basis. Fortunately, a variety of plans is available, making it possible to customize the level of maintenance a fleet of lift trucks needs and fits into the budget at the same time.
Three types of plansThough the services and terms sometimes vary by service provider, there are three basic types of maintenance agreements: basic repair, preventive maintenance and full service.
Basic repair agreements stipulate that the service provider is contacted only when a repair is needed. A technician then reports to the warehouse to repair the lift truck at a set labor rate. On this plan, customers pay for the labor and parts used, also known as a 'time and materials' plan. The term of agreement is usually indefinite.
Preventive maintenance programs involve a set schedule for routine inspection and maintenance of a lift truck fleet. Basic services provided usually include lubricating parts, checking for hydraulic leaks, monitoring battery water levels as well as other fluid levels, and testing brakes. Some providers perform any necessary repairs in addition to the regular maintenance. Others make only those adjustments needed to avoid major repairs and let customers manage repairs themselves.
Full service agreements offer complete management of all lift truck maintenance for a fixed monthly fee. With this plan, a technician typically reports to a facility 40 hours a week to inspect the entire lift truck fleet, perform regular maintenance, obtain parts and repair trucks immediately so that customers are guaranteed vehicle uptime all of the time. This type of plan usually has a set term of three years or more. Because full maintenance plans can be expensive, customers should weigh the costs of a proposed contract against the estimated costs of operating and maintaining their lift trucks for the term of the contract.
Plans and providersIf contract maintenance sounds like a viable option, the next step is finding a provider and determining the specifics of a plan most suitable for your facility.
Many lift truck suppliers and dealers as well as materials handling equipment distributors offer a range of service plans.
There are many factors to consider when choosing a service provider. Most important are the provider's typical response time, hours of operation, the number of available service trucks and technicians, and the geographic areas served. Also a provider should have an extensive parts inventory and service shops with a wide range of capabilities.
To determine the plan that is most appropriate, service providers complete a survey of a facility and offer estimates of the types and costs of maintenance needed.
The age, current condition and brand of each lift truck are noted in the survey. Truck condition is critical because it directly results in productivity.
Lift truck usage is also factored into the evaluation. The number of lift trucks used, hours of operation and type of applications all affect the extent of maintenance needed. For example, a warehouse operating a few dozen lift trucks for two to three shifts each day needs a more extensive maintenance program than one using only a few trucks for one daily shift. And lift trucks that handle heavy loads need more attention than those with light-duty tasks.
A facility's condition also affects maintenance costs. Damaged concrete floors or dock areas in poor condition increase maintenance costs. Lift trucks operated outdoors or in freezer environments also entail more maintenance. Service providers also note cleanliness of the warehouse since a poorly kept facility with broken pallets and loose materials on the floor can damage trucks.
Whether lift trucks need a few occasional repairs or ongoing daily inspection, contract maintenance could be a cost-effective solution. Consider the maintenance needs of the trucks and the estimated long-term costs of operating and repairing them to decide if a basic, planned or full service agreement is what's needed.

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