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

By ·

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.

Read all of Modern’s ProMat 2011 coverage

 

 


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

ProMat · · All Topics
Latest Whitepaper
Evaluating Goods-to-Person Technologies
This white paper overviews the various, self-contained, goods-to-person AS/RS systems available for handling the totes, cases and eaches most frequently faced by e-commerce order fulfillment operations, and the typical applications for each.
Download Today!
From the May 2017 MMH Issue
Every company considers itself an innovator. It’s time to include materials handling leaders in that category.
Top 20 Worldwide Materials Handling Systems Suppliers 2017
ERP Suppliers’ Changing Role
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
Materials Handling Innovation (and why it matters)
Every company considers itself an innovator. It’s time to include materials handling leaders in...
Thrive Market’s Startup Distribution Network
How does a fastgrowing, e-commerce startup company build out order fulfillment capabilities? Thrive...

U.S. Roadmap for Material Handling & Logistics: Version 2.0 released today
On Tuesday, the U.S. Roadmap for Material Handling & Logistics: Version 2.0 will be released on...
2017 Productivity Achievement Awards
Modern’s annual Productivity Achievement Awards honor companies that have made exceptional...