Leased fleet cuts costs, improves operations
Hanson Cold Storage went to a leased fleet of 127 lift trucks tailored to its materials handling needs, and a full maintenance contract.
Staff -- Modern Materials Handling, 10/2/2003
Hanson Cold Storage wanted to spend less time worrying about lift truck management and more time taking care of its customers. So the company did what it asks customers to do—outsource. The company provides cold storage services for local, national and regional food processors and distributors.
"We didn't have a company-wide system for lift truck fleet management," says Jordan Tatter, president and CEO. "At some facilities we had people working on lift trucks and at others we used local dealers. We had lots of variations and brands of equipment."
Today Hanson leases a one-brand fleet that is tailored to its materials handling needs. It has a total of 127 lift trucks in a fleet management services program. For short-term needs, the company also rents lift trucks, especially during the winter holidays when throughput doubles.
On the financial side, the result has been a reduction of headaches in calculating lift truck costs. "Before, headquarters may not have known if a lift truck we owned was still working and still around," vice president and CFO Jim Reits says. "It's helped save time on the property tax returns we have to file for each township because it's now centralized. "
On the fleet management part of the equation, Hanson contracts for total maintenance and repair services on new and used equipment. Its local dealers provide those services, freeing up Hanson's staff to run the warehouse with trucks that are always maintained and ready to go.
Hanson also benefits from a more customized lift truck fleet. At the same time that the company was rethinking its decentralized methods of choosing and managing its lift trucks, Hanson was also expanding one of its facilities. It added 4,400 pallet positions and about 280,000 square feet of refrigerated storage area.
"The length of time the lift trucks get used in a day in an environment with temperatures that can go as low as minus 20 degrees, creates a demanding environment for lift trucks and their batteries," says Kent Headley, vice president and warehouse manager of the company's Lafayette division.
The trucks also handle loads that weigh 500 to 2,500 pounds, lifting them into racks as high as 88 inches. Typical uses include storing and retrieving loads in drive-in racks with low ceiling heights and performing high-cube handling. The key was to build a lift truck fleet tailored for the varied uses in the warehouse.
For instance, five sit-down, three-wheel electric trucks are used for drive-in racking in the coolers. The trucks also unload products from trailers and stage pallets on the dock.
Two electric, deep reach trucks work the two-deep bays in freezer storage areas. They operate in narrow aisles and can lift products to the top rack level of 26 feet.
"We're able to use that reach capability to extend lift truck forks and place pallets eight feet back, and utilize that second pallet position," Headley explains. "This increases our performance and productivity because we move more products."
Hanson managers also cite the new fleet for its diversity, space utilization and durability. The fleet moves products quickly and efficiently—a crucial feature for any cold storage facility whose customers have demanding delivery schedules.
"We've been able to grow at a pace that makes sure our customers don't leave us because we've been able to provide them with the quality services and space that they need," Tatter concludes.
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