Modernize equipment to attain strategic objectives
When evaluating whether to refurbish existing equipment or to invest in new replacements, it’s wise to consider several factors, advised Pete Hartman, president of Retrotech (Booth 554).
“Modernization is generally thought of as replacing obsolete components, but a more valuable aspect is to realign your system with new and evolving strategic corporate objectives,” said Hartman.
“When you look at the rapid pace of change in the current economy, every five to seven years people ought to be testing these investments for strategic alignment,” he continued. “Consider modernization as a mechanism for realigning that investment with current strategic thinking.”
To validate a modernization project, Hartman suggested three guidelines: Determine the return on your investment; consider how the investment supports strategy (as opposed to managing costs); and verify that the underlying business plan used to define objectives is stable enough to yield maximum value.
ProMat 2011 will be held March 21 - 24, 2011 at McCormick Place South in Chicago. The tradeshow will showcase the latest manufacturing, distribution and supply chain solutions in the material handling and logistics industry.