Don’t forget the basics
To build a stable platform for effective and smart material handling does not start with buying a truck.
Every warehouse or MH-system can be described as illustrated.
Storing is always a cost. It does not add to the value of the product, it always increases the cost. The demand on the MH-system is to handle the right products, in the right time to as low total cost as possible.
30-60% of the final price
The materials handling importance for the end-price of a product is growing. Today it is estimated that 30-60 % of the end-price is related to cost of materials handling. All depending on the kind of industry and manufacturing methods.
Storage / Handling costs
We can, roughly, split the total costs for a MH-system in the following parts:
| Space / rent | 65% – 75% | |
| Staff | 20% – 25% | |
| Equipment | 5% – 10% |
Equipment e.g. trucks plays a minor role when it comes to the total cost. But with the right system, the right method and the right truck the total cost can be dramatically affected.
And this is Atlet’s business philosophy – to give the customer a better total solution, not only to sell a truck!
“Atlet improves the profitability of the customer’s internal material handling by offering user-oriented and ergonomic products including aftersales support and related services.”
Be proactive, not reactive
By regularly simulating the warehouse by a logistics analyse tool you can save a lot of money as you will immediately get a report if anything is wrong. If the problem is known on time you can prevent queuing, congestion and the wrong truck fleet.
The diagram demonstrates the marginal profits that can be achieved with the same amount of investment made in the materials handling process as in the production process.
The big difference in profit depends on the fact that the degree of rationalisation in the majority of cases is much lower in materials handling than within the production process.