Key Factors to Consider When Purchasing Used Warehouse Equipment
This is Your Buying Guide.
Is saving money on capital equipment important to your company? Then read on. Purchasing equipment for a warehouse or storage facility isn’t cheap. Whether you’re moving into a new facility or refitting your existing one, it’s important to curtail expenses — and purchasing new equipment can completely deplete your budget.
Often, managing a warehouse requires dealing with a lot of change, quickly and efficiently. When you need to move, grow, and find warehousing equipment as soon as possible, you must consider which equipment is best for your warehouse. Purchasing warehouse equipment can be a complex process that requires the attention of many dynamics.
An economical way to save is to purchase used racking, shelving, and other used equipment. There is always used equipment available in good condition and at very good prices. However, purchasing damaged, inadequate or unsuitable equipment could end up costing you more than brand new products. It is critical to consider some key factors before purchasing used warehouse equipment and keeping these aspects in mind, you will save 30-40 percent on capital equipment. Additionally, you will have your warehouse set up as planned and at a more cost-effective price.
Factor #1:
Clearly understanding your warehouse operations, and collecting data is a critical first step in designing a warehouse. Database development is a key element of any warehouse sizing and design process. This effort starts with identifying exactly what needs the warehouse must satisfy. Companies should also assess what percentage of shipments arrive by ocean container, full truckload, less-than-truckload (LTL), and package delivery. Additionally, companies should determine how often they receive orders that are on pallets and ready for put away, versus shipments that need to be sorted and re-stacked. Projecting requirements five to seven years into the future are also key.
In most facilities, inventory is the primary space driver, and companies must consider how much inventory they need to incorporate what picking methods will be used to handle inventory. Inbound shipment characteristics also play a large role in warehouse design.
Factor #2:
The floor area layout, SKU quantity and volume, and storage mediums are important factors and have a huge impact on what type and amount of shelving are required. Warehouse space is not unlimited, and it is not free. You don’t want to waste space because an inefficient shelving solution doesn’t allow you to store all your products safely and effectively. Keep in mind, there are different types and styles of shelving that your warehouse or distribution center can include, they are:
· drive-in rack
· Push back racks
· mezzanine floor
· pallet rack
· heavy-duty bin shelving
· and many more
To decide which is best for you, the first step is to examine your warehouse and determine whether racking or shelving is primarily needed. If your warehouse has a large area, stores large goods, and has a high-product flow, industrial warehouse racking systems may be the most efficient storage option.
Next, identify which combination of rack styles is the most suitable for your warehouse. Industrial warehouse racking does not have to be limited to one size or type. Exploring all your options is the best way to customize your warehouse in order to maximize space.
If your warehouse has a continuous product circulation, consider selective pallet racking. This racking system allows you to access all pallets simultaneously, leading to increased productivity in your operations. With selective racking, pallets are unloaded and loaded from the front of the racking system.
For warehouses that hold large quantities of similar products, the drive-in rack is the most suitable. With this system, forklifts load and unload goods by entering through the front of the system and then backing out once all goods are in place. Drive-in racks follow the last-in, first-out inventory management, so it’s necessary that the goods placed last in the system will be the items retrieved or transported first. Drive-in rack is the most economical, high-density storage rack system available.
Consider push back racking systems if your warehouse requires access to several stock-keeping units concurrently. Similar to drive-in racking, push back racks are designed for last-in, first-out inventory management. As a high-density storage solution, push back systems are designed to increase storage capacity and you will still have some selectivity by level, available.
If you are looking for a shelving system, wide-span shelving is an option for a wide range of uses. This clip-together shelving system is ideal for storing small, slow-moving materials. Since they are assembled using an easy clip-together system, these shelves are fully adjustable and can be used to support a mezzanine floor system. Their versatile features allow the addition of accessories, such as security cages, crates, tool racks, and more.
Factor #3:
To maximize profits while cutting down operations costs, you need a well-planned strategy. Well-planned storage systems and accurate order picking areas, combined with properly abided technology, will enable the distribution center/warehouse operators to provide shorter response times and higher productivity rates. Thus, reducing costs and increasing profits.
1. Reduce Space by Optimizing Storage
Learn the dimensions of various forklifts needed for every type of product. Sort your inventory by aisle dimension required for machinery access and reduce the width of inefficient aisles wherever possible. Aisles are essential to making navigation an easier process for machinery and workers. The quicker a product can be in the warehouse, the sooner it is loaded on the truck for distribution.
Racking is the best option for efficient inventory and storage space optimization. By using this system, you will see an increase in allowable square footage for pallets. Narrow and tall is the most common racking build. However, using the appropriate system of racking for your current inventory is vital.
2. Protect your Inventory
Billions of dollars are lost every year in warehouses. Some of the losses occur because of misplacement or theft, and the remainder from stock damage.
Proper packaging and storage procedures help to eliminate unintentional damage. Extensive training for employees is also crucial. To reduce the chances of theft in your warehouse, control all access points by keeping doors locked. Implement a key card system if necessary.
3. Purchase Used Equipment
Buying used, versus new warehouse equipment, could save you up to 40 percent. High-quality, used equipment can include pallet racks, metal shelving, teardrop racking, drive-in racks, conveyors, and more. It’s a no-brainer to utilize used equipment and save big!
4. Reduce Labor-Related Cost.
Labor is an enormous piece of any warehouse’s operating budget. Paying employees less is not an option but reducing their dwell time will improve profits overall. Time is money, and idle employees are not contributing to your bottom line. Focus on employee retention. It is less expensive to pay an experienced employee than it is to hire and train a new one. Offer to cross-train and provide continual training seminars on new procedures to improve productivity.
Factor #4:
Having a capital budget prepared and capital ready to deploy will allow you to seize an opportunity when the right used equipment becomes available.
The experts at Used Warehouse Equipment can help you maximize your warehouse space — allowing you to be more resourceful with both space and cost. Our professionals will design a customized racking system for your specific warehouse needs. If you already have a design in mind, we can help you purchase the most cost-effective products and install them for you.
