15

Dec
2010

The Total Cost of Ownership For Forklifts

by Scott McLeod

Increase profits by reducing all direct and related forklift costs.

Reducing your fleet size by only ( 1 ) truck can significantly improve your bottom line.

Direct Costs

Depreciation
Interest
Planned maintenance
Breakdown maintenance
Tire maintenance
Operator damage to forklift

Related Expenses

Fuel
Operator wages
Operator WorkSafeBC premiums
Operator benefits
Operator tools and supplies
Operator supervision
Operator hiring costs
Operator administration, ie payroll, filing etc.
Operator damage to products
Operator damage to facility
Operator training
Exposure to legal costs due to liability risk
Insurance for forklift
Liability insurance
Downtime due to repairs
Downtime due to poor asset utilization
Rentals, during major repairs
Freight to dealer’s shop for major repairs
Unproductive forklift aisle space ( real estate )
Unproductive product storage design ( real estate )
Unproductive product flow
Management time, ie approving repair bills etc.
Clerical time, ie coding, filing etc.
File space ( real estate )
Cheque processing
On-site shop ( real estate ), if applicable
Tools for on-site shop, if applicable
Parts inventory for on-site shop, if applicable
Utilities for on-site shop, if applicable
Unproductive time for resident technician, if applicable
Emissions – effect on health, productivity and environment
Ventilation systems for WorkSafeBC acceptable emissions
Facility electrical capacity for battery charging, if applicable
Preshift forklift inspections required by WorkSafeBC
Opportunity cost of placing your capital elsewhere
Utilization tracking and reporting
Maintenance cost tracking and reporting

Posted in: Forklift Fleet Management