CALL 334-738-8556 FOR ADDITIONAL INFORMATION
LET'S TALK PAYBACK
TYPICAL SAVINGS / RESULTS FROM IMPLEMENTATION OF C&W SYSTEMS
EXAMPLE PARAMETERS
TYPICAL 500,000 SQUARE FOOT DISTRIBUTION FACILITY WITH THE FOLLOWING
- 10 FORKLIFTS
- 13 POWERED PALLET JACKS
- PARTIALLY BELT OR ROLLER CONVEYORS
- 63 TRUCKS IN OR OUT DAILY
- 1800 PALLETS RECEIVED DAILY
- 1940 PALLETS LOADED DAILY
- 65% OF OPERATIONS TO RECEIVE, STORE, AND LOAD
- 35% OF OPERATIONS TO REPACK, SEQUENCE, RE STOCK
- 48 LIFT AND JACK OPERATORS
- TWO SHIFT OPERATION
INITIAL LIFT AND JACK INVESTMENT IS $650,000 AMORTIZED OVER 7 YEARS = $93,000 /YEAR ASSOCIATED OPERATING EXPENSE ( MAINTENANCE, BATTERY, CHARGING) = $97,000 / YEAR
LABOR WITH FRINGE BENEFITS & OVERHEAD ( AVG $38 / HR X 96000HRS = $3,648,000 / YEAR
TOTAL ANNUAL COST..................................................................................................$3,838,000 / YEAR
TYPICAL C&W / TRITECH RECOMMENDED SYSTEM FOR THE ABOVE TWO SHIFT OPERATION
- 4 FORKLIFTS
- 4 POWERED PALLET JACKS
- 4 TUGGERS @ $11,000 EA
- 40 CARTS @ $2,000 EA
- 35 RECEIVERS ECT.
TOTAL CAPITAL INVESTMENT IS $364,000 AMMORTIZED OVER 7 YEARS = $52,000 / YEAR
ASSOCIATED OPERATING EXPENSE = $46,000 / YEAR
LABOR WITH FRINGE BENEFITS ( AVERAGE $40 / HOUR X 26 X 2000 HOURS ) = $2,080,000 / YEAR
TOTAL ANNUAL COST .......................................................................................... = $2,178,000 / YEAR
TOTAL ANNUAL SAVINGS ( $3,838,000 / YR - $2,178,000 / YR ) = $1,660,000 / YR RETURN ON INVESTMENT ( ROI )............= 2 1/2 MONTHS With four trains in tow, will require 620 round trips loaded. With a goal of 97% full form storage to docks and 86% full form incoming dock to storage = average 92% loaded = 675 trips required. Each trip will take 2.5 minutes (@ 415 minutes work per day 2.1 trains / shift). All previous calculations are very conservative - 4 Trains / Shift assuming forklift / pallet jacks transport with 2 pallets / trip and 92% loaded 2000 trips / day at 1.9 minutes travel / trip as compared to 675 trips / day with cart train.
Forklift / Pallet Jack 1687 Minutes = 28 hours / day @ $38 / hour = $1330 Saved / Day = $400,000 saved / year
JUST WITH CART TRAINS OF FIVE CARTS... WHAT WOULD HAPPEN IF WE USED A TRAIN OF 10?
Things to implement for more savings:
- TRANSFER CONVEYORS
- STAGING RACKS (one train capacity) AT EACH STORAGE ZONE
- EMPTY CART TRAIN DROPPED AT RETURN FROM OUTGOING DOCKS
|
|
