1. Analyzing Your Lift Truck Fleet for Optimum Efficiency
Click to continue

2. 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.

3. Fleet Facts – Understanding Costs
20% of the total cost of materials handling is associated with the acquisition cost of the equipment.
80% of total cost is related to operator and maintenance expense.
80%
20%

4. 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

5. 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.

6. 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.

7. 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 customer’s definition of, and expectation from, fleet management is unique.

8. 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 vehicle’s “Break Even” point.

9. Fleet Management – Optimum Life Economics
Ownership costs
+ Maintenance costs
= Total costs
(ownership + maintenance)
Break Even Point
“Break even” occurs when cumulative costs per operating hour reach their lowest point on the total cost curve.

10. 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 don’t 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.”

11. 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

12. 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.

13. Fleet Management Process
Begin Here
Monitor
Survey
Begin at “Survey” to step through and see the details on our continuous process
Implement
Analysis
Important to monitor hours for proper PM’s and utilization calculations. Are the trucks running at the predicted usage or has the application requirements changed which will affect fleet utilization and perhaps fleet size?
Is everything being done to minimize maintenance?
Continue to establish the economic life on each piece of equipment and replace when necessary.
Have the necessary information system in place to provide reports for management on the maintenance costs, utilization, ROI calculations, etc... Management must continually see that Fleet Management works! Now may be a good time to demo the Maintenance Tracking software program (HMAS). This can be done by laptop or perhaps a separate booklet showing some entry screens and reports.
Proposal

14. 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

15. 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

16. 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

17. 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

18. 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.

19. 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 don’t hesitate to contact us with any questions.

20. 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.

21. 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.

22. 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.

23. 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

24. Contact Us Thank you for your interest in Equipco Fleet Services.
For more information:
contact Equipco
call or

25. in Equipco Fleet Services
Thank you
for your interest
in Equipco Fleet Services
(Press the Esc key on your keyboard to close this presentation)