Fleet Management & Forklift Safety Blog

Your Fleet Management— Big Expenses & How to Reduce Them

Posted by Dick Sorenson on Feb 8, 2018 5:00:00 AM

Forklifts, batteries, and forklift operators represent a large portion of your operating expenses. Tracking and evaluating these three vital components of your business can help determine waste and ways to reduce unnecessary costs. money-1604921_640.jpg

Do you know where you lose money each day? The answer to that question, and a solution, is in fleet management data.

The real ways your fleet may be costing you

The right telematics software quickly identifies costly waste and spells out how to create a strategy to reduce it. Fact is, there are several ways a fleet and its operators waste time and/or money.

1) Impacts and operator injuries

The forklift is probably the most dangerous vehicle in the warehouse. Beyond the physical and emotional impact, the cost of on-the-job injuries add up — in several ways. The average work-related injury leads to $38,000 in direct expenses and $150,000 in indirect costs.

What can you do? Determine why an impact happened and address potential accidents before they occur. Use a telematics system to:

  • get warnings about poor operator behavior patterns (an operator report card)
  • determine the root cause of accidents
  • track all incidents that occur, in detail, for analysis in safety investigations

2) Older forklifts mean reduced efficiency

As forklifts age, they cost more in repairs, and risk and hourly operational costs rise for a several reasons.

  • If maintenance was skipped over a period of years, the truck will be less efficient and more prone to breakdowns, impacts, or driver injury.
  • The more repairs needed, the more money is spent on parts and servicing.
  • Overextending the life of an old lift-truck can put unsafe vehicles in operation, leading to injuries or damage to inventory.

Monitoring each forklift with advanced telematics can help to clarify when a vehicle is down for repairs frequently and is therefore too old to be safe or to operate efficiently.

3) Battery lifespan shorted by improper charging

Improper battery care and charging practices can end battery life prematurely. Opportunity charging should also be avoided because charging a battery too soon eats away at the lifespan. Batteries should also get fully recharged daily.

Telematic battery-monitoring technology tracks the status of each battery, including when and how it is being charged.

4) OSHA violations and fines

Your business must adhere to OSHA regulations, like required safety checklists and regular forklift maintenance. If unit monitoring and licensure checks are not a priority, you run the risk of untrained operators driving trucks and drivers potentially not following safety procedures. This leads to costly fines and violations.

5) Poor routing, spotty maintenance

A poorly routed fleet and skipped maintenance can add up to costly inefficiencies. Real-time visibility into the movement and performance of your fleet and its operators — as well as ongoing maintenance protocol — can dramatically eliminate habits that reduce productivity and profits. 

The right telematics software can help you identify costly fleet-related issues and help you proactively work to prevent them.


Topics: goals, value driven strategies, connected warehouse solutions, waste stream reduction, cost reduction, telematic data

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