The world of materials handling and logistics is constantly changing, but at the moment, things are more uncertain than ever. The COVID-19 crisis began at the start of the year, but already it’s caused huge changes to manufacturing, consumer buying habits and ways of working. On top of all this, the UK’s approaching withdrawal from the European Union continues to create uncertainty for businesses on both sides of the channel, especially those that move components or finished goods between the two markets.
Considering the current situation, planning for the future is difficult. Many companies’ future work capacity is uncertain, and they are unsure what their business will look like or how it will operate in five years. For companies like this, making big investments in new materials handling equipment that can improve their operations is difficult.
If this sounds like the situation in your company, making use of flexible rental contracts could allow you to handle uncertainty better.
Discussing flexible contracts with an MH equipment supplier can give you a range of options you might not have considered before. Signing a five-year contract may seem too risky right now, but depending on the terms, you can make room for potential operational changes in future. For example, you could negotiate a contract that gives you the equipment you need now but includes the possibility to switch to different equipment after three years. If the business or materials handling requirements change over the next five years, there is still the option to bring in more suitable equipment while the contract is still running.
A similar agreement could also be reached if there is a chance the business is going to move to a new location. If your company will potentially up- or downsize in the coming years, you can make room for this in the contract. Moving to a new location may mean switching from a fleet based mostly on reach trucks to one focused on counterbalances, for example. By discussing with your supplier, you can design a rental contract that can adapt as your business changes.
In the current climate, the kind of items you handle may also change. Major events like Brexit may mean you will stop stocking certain items or start stocking new ones. Changes like this mean your materials handling requirements will change – and you can ensure that your operation keeps running smoothly with a flexible rental contract that allows you to change equipment.
Even though the future is currently hard to predict, you don’t need to stop developing your operation while waiting for a better business climate. Discuss your concerns with your supplier and you should be able to come to an agreement that gives you the right amount of flexibility. If you want to discuss your business’s possibilities, click below to get in touch with us. Together with our team of experts - the integral ownership of our leasing capability allows UniCarriers to offer their customers much greater flexibility and varied service.
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