Total Cost of Ownership (TCO), while it started off as a management accounting concept, it’s made its way into capital purchasing decisions of all types, including fork lifts. TCO takes into account all the direct and indirect costs associated with purchasing and owning a forklift, and now more than ever this concept is incredibly important when managing your fleet. Throughout the rest of this post we are going to explore some of the costs and some of the factors that should be considered when evaluating your TCO for your fork lift fleet management.
Some of these elements include:
- Initial purchase price of the equipment
- Performance (cost per hour to run the equipment)
- Reliability (up-time vs. down-time)
- Life expectancy
- Fuel consumption and replace (LP vs electric)
- Maintenance costs (oil changes, spark plugs, tires)
- Safety and ergonomics for operators
Now that we’ve explored some of the elements that go into TCO, let’s discuss how we can get the most out of your lift truck fleet.
Every lift truck in your fleet is an investment you want to get the most out of that investment. In order to achieve accurate TCO for your fleet, our expert fleet strategists at BEB recommend that you do the following:
- Determine if you’re using the right truck for your operations. Engaging your operations and engineering staff will help you determine if the lifting you are doing is right for the equipment that you have.
- Set your KPIs and replacement parameters and stick to them.
- Conduct periodic reviews of the parameters and KPIs.
- Don’t forget about re-sale value.
At BEB we understand a lot goes into evaluating the TCO of your fleet and many times you simply do not have the time, tools or expertise to accurately calculate that important measurement. BEB offers a complete and comprehensive set of software tools and reporting along with a personal fleet strategist to help you make the best decisions about your fleet both now and in the future. To learn more about BEB’s fork lift fleet management, visit: http://www.bebsoft.com/fleet-management.html