Mechanical handling equipment delivering major cost savings

This paper has been written with particular reference to large multi-site organizations (LMSO), but it is intended that readers in other organizations also find much of interest. It gives insights in a number of areas: 1. where mechanical handling (MHE) equipment associated costs lie, 2. what good practice is for MHE procurement and management in LMSOs, 3. the cases for and against sole-sourcing and multi-sourcing MHE, and 4. the issues to be considered for a revised MHE strategy. Ongoing effort should be devoted to mimimizing truck numbers and thereby associated driver numbers, through modern warehouse design and simulation software. The case for sole-sourcing MHE is overwhelming so long as major MHE suppliers continue to compete strongly. Issues to be considered for a revised MHE strategy include market testing, organizational, specification, internal data gathering, contractual, and financial issues.