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Analyzing Your Lift Truck Fleet

for Optimum Efficiency

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Purpose of This CD
This presentation demonstrates the necessity and advantages of a well coordinated fleet management strategy. It is designed to be a simple introduction to the principles of fleet management. Please contact your Equipco Dealer for a complete and personalized fleet analysis.
Use the arrows in the lower left corner to move forward and back through the slides. Alternately, use the buttons on the top of the slides to go directly to a specific topic.

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Fleet Facts Understanding Costs


20% of the total cost of materials handling is associated with the acquisition cost of the equipment.

20%

80% of total cost is related to operator and maintenance expense.

80%

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Fleet Facts Lifecycle


The average lift truck is over 12 years old. The average lift truck has an estimated economic life of 10,000-14,000 hours. As a fleet ages, the cost of operation increases:
Repair expenses increase Downtime increases Productivity decreases

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Fleet Facts Utilization


On average, companies have 10% to 20% more units in operation than are required to do the job. Short term rental units are often used to address shortages created by excessive downtime. Lift trucks are often sourced through multiple vendors, limiting flexibility related to equipment rotation and re-location.

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Fleet Facts Maintenance


Many companies do not have scheduled or preventative maintenance programs for their lift truck fleets. Lift truck fleets typically consist of a diverse mixture of brands, requiring an extensive inventory of parts to support them. Record keeping regarding lift truck maintenance is generally poor or non-existent.

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Fleet Management Defined


Fleet Management is a reduction of materials handling costs resulting in increased efficiency.
This requires a planned replacement program which optimizes the economic life of the equipment.

The overall goal is universal: to reduce costs. However, each customers definition of, and expectation from, fleet management is unique.

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Fleet Management Optimum Life Economics


Understanding the point at which acquiring a new lift truck for your fleet is more cost-effective than continuing to repair your current equipment is critical to the deployment of an effective fleet management program. The graph on the following slide demonstrates the concept of Optimum Life Economics to determine a vehicles Break Even point.

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Fleet Management Optimum Life Economics


7 6

Cost per Hour

Ownership costs + Maintenance costs = Total costs


Break Even Point

(ownership + maintenance)

0 2,000

Break even occurs when cumulative costs per operating hour reach their lowest point on the total cost curve.
4,000 6000 8000 10000 12000 14000 16000 18000 20000

Accumulated Operating Hours

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Fleet Savings Calculator


Use our interactive calculator to understand the dynamics of maintenance expenses associated with typical lift truck fleets. Based on your input, see possible savings that can be realized with a fleet management program.

Click here to go to the calculator

NOTE: The Fleet Savings Calculator requires Microsoft Excel and uses macros to support interactivity. Click Yes to Enable Macros when the on-screen message displays*. No will Disable Macros, and the interactive options will not work. You will, however, see a sample analysis based on a default profile. When you are done using the calculator, close the spreadsheet to return to this screen. * If you dont see any message, your copy of Excel is using High security and has automatically disabled the macros. Change this in Excel by going to Tools, Macro, Security and selecting Medium.

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Hyster Fleet Services


A well designed fleet management program can:
Lower operating costs Reduce fleet size Increase utilization Train operators/technicians Evaluate contract maintenance  Determine financing alternatives       Improve or eliminate parts inventory  Redirect head count  Monitor costs  Reduce supplier base  Maximize efficiency

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Equipco Fleet Services


At Equipco, Fleet Management is not a one time event, but a continuous process that provides for continued cost reductions and savings over time. Sound fleet management programs consist of regular fleet surveys and analysis. On the following slide, start with Survey and click through the five steps to better understand our Fleet Management Process.

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Fleet Management Process


Begin Here

Monitor Begin at Survey to step through and see the details on our continuous process

Survey

Implement

Analysis

Proposal

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Fleet Management Process Step 1: Survey


Gather Information on the Existing Fleet
Make/Model Age/Serial Number Current/Anticipated Operating Hours Utilization/Required Availability Specifications/Special Requirements Application/Operating Conditions Maintenance History
Return to Process Flow

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Fleet Management Process Step 2: Analysis


Compare Existing Fleet to Replacement
Maintenance History Interpretation Utilization Studies Projected Maintenance Potential Savings ROI Analysis

Return to Process Flow

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Fleet Management Process Step 3: Proposal


Equipment Recommendations
Replacement Units and Configurations

Financing Alternatives
Lease vs. Buy

Maintenance Options
Contract Maintenance or Parts Inventory

Training Recommendations
Operator and Mechanic
Return to Process Flow

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Fleet Management Process Step 4: Implement


Finalize Action Plan
Standardize Proposed Recommendations Product Supply Plan Equipment Disposal Plan Establish Training Schedule Maintenance Arrangements Customer Commitment
Return to Process Flow

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Fleet Management Process Step 5: Monitor


Regular Review of Plan
Condition of Equipment Hours Utilization Maintenance Cost Fleet Size and Replenishment Management Reporting

Return to Process Flow

Step 5 completes the process. Click forward arrow to continue.

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Applications
Information on the following slides provides examples of how Equipco Fleet Services delivered cost savings to major manufacturers in several industries. We can do the same for your company. As you review each example, please dont hesitate to contact us with any questions.

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Applications Automobile Manufacturer


NEED: A major automotive manufacturer looked to Equipco Fleet Services for a fleet management program that would result in immediate and long term cost reductions. SOLUTION: We recommended a planned replacement program and other cost saving opportunities such as financing alternatives, centralized billing, and maintenance outsourcing. RESULT: Annual savings in excess of $3,000,000.

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Applications Paper Manufacturer


NEED: A major paper industry company enlisted the assistance of Hyster Fleet Services to help improve their corporate ROI. SOLUTION: We implemented an annual fleet survey and analysis of their entire lift truck fleet. RESULT: The program reduced the average age of the fleet by 50% and trimmed fleet size by nearly 10%. The company realized approximately $800,000 in savings the first year, with projections of saving over $4,000,000 in the next 5 years.

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Applications Food Processor


NEED: A major food processing company wanted to centralize material handling procurement and implement a fleet management program. They explored several options before selecting Hyster. SOLUTION: We assisted in establishing a Master Lease Program with Hyster Capital. We also conduct regular fleet surveys and facilities analysis to identify other opportunities. RESULT: The company now has a planned replacement program. Plus, with central purchasing, they achieved savings through economies of scale and enjoy the benefits of a dedicated Account Manager.

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Put Equipco Fleet Services to Work for You


Redirect resources into core business Reduce maintenance expenditures Reduce capital expenditures Reduce administrative costs Increase utilization and productivity Implement equipment rotation program Track your materials handling costs Take you out of the forklift business

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Contact Us
Thank you for your interest in Equipco Fleet Services. For more information:
contact Equipco call 1-412-221-2800 or 1-800-245-6484 e-mail ddale@equipco.com

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Thank you for your interest in Equipco Fleet Services


(Press the Esc key on your keyboard to close this presentation)

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