Warehouse owners often purchase cheap equipment to save money, but is this a good idea? Here are some reasons why it may be a false economy.
Long-term cost
Cheap equipment does save money initially, but substandard equipment in a busy warehouse will not last long before it needs replacing. If it is replaced with the same standard equipment, these costs double (the original purchase price plus the replacement cost).
On the other hand, strong equipment might cost a little more to purchase but will last longer, saving replacement costs. This means that good-quality equipment can cost less in the long term.
Lost productivity
If equipment breaks down, this results in a loss of productivity. For example, a picking trolley breaking means that the picker has to stop, go to where spare trolleys are kept, take a new trolley to the broken trolley and transfer the items to the replacement trolley. The picker will also be required to report the breakage so that the broken trolley can be removed. Even if this process takes less than an hour, there is still a financial productivity loss.
Well-made and durable equipment is much more reliable and will maximise productivity.
Safety
Cheap equipment that breaks is an injury risk. Weak shelving that fails can cause heavy items to hit workers, and a trolley wheel breaking can also be an injury risk. If an employee is injured through faulty equipment, the company could be prosecuted and receive a hefty fine
Quality equipment, provided the manufacturer’s maximum load is not exceeded, is much less of a health risk.
Poor design
When you purchase cheap equipment, you have no say in its design. A flat generic trolley may be fine for moving small boxed items but is not suitable for odd-shaped heavy items such as sofas or windows.
At Steely Products, we offer a bespoke service. Want different sizes? Need more shelves adding to a packing table? Simply ask us, and we’ll create bespoke equipment for you. We’re sure you’ll find our value-for-money tailor-made equipment increases productivity.
You should always financially measure productivity as it is related to company profits. Loss of productivity costs money, whereas increased productivity and efficiency increases profits. When buying equipment, as well as the purchase cost, evaluate the extra productivity the equipment adds to the warehouse operation.
An integrated approach
Increasing productivity and efficiency requires an integrated approach involving several factors. Buying good equipment is just one element that increases productivity. Looking at management systems, warehouse layout and staff training are also important for better-run warehouses.
At Steely Products, we’re happy to advice you on the best equipment for your warehouse operation. Invite one of our equipment experts to your workplace for a consultation on the equipment you need.
We are dedicated to making quality equipment that, as we have seen, can save money in the long term. Why not find out more about our equipment by calling 0161 702 7002, or using the contact form below?
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