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How much does downtime cost a materials handling operation?

Written by Jonas Tornerefelt, 2019-07-12


A forklift's sticker price is an important figure, but it's often smaller than the much larger set of costs which arise over the truck's lifetime from things like service, driver costs and financing.

One major cost that every materials handling professional wants to avoid is the cost of downtime. This occurs when the truck is out of operation at a time it would otherwise be in use — typically when it has broken down and needs maintenance.During downtime, the truck is only costing you money. It's not contributing at all to the workings of your operation, and may even be slowing them down — especially if you have a smaller fleet and your other trucks are struggling to get the work done.

These costs add up, and over a truck's lifetime, the cost of downtime can make up 5% of the total cost. This can add up to a lot of money that could be saved and spent better elsewhere — possibly by investing in technology to help reduce damage, or choosing a better and more responsive service supplier.

In other words, it's a 'soft cost', or a cost that you can reduce by making some smart decisions. It's not just downtime that can be brought down, however. A large part of your truck's total cost of operation is made up of soft costs, and you can see some big changes to your bottom line based on the way you plan and equip your materials handling operation.

Click the button below to get our guide, The total cost of owning a truck, and what affects it. It'll explain how you can reduce the effects of these unecessary costs, and it's totally free. Just complete the short form on the next page and it's yours.

Get the guide to forklift costs

Topics: Service Cost reduction

Jonas Tornerefelt

Vice President Products, Marketing, Sales & Services



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