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The Age of Material Handling Systems Will Affect Business

RALEIGH, NC – Many material handling systems used today are beginning to show their age. What were once considered brand new systems are now deteriorating and fighting to stay current. With information collected in a recent survey to retailers, manufacturers, wholesalers, and third-party logistics firms, Tompkins Supply Chain Consortium is able to provide important data regarding the age of material handling systems.

The survey revealed the average age of a material handling system is 15.3 years old. A total of 35% off all companies have at least one material handling system that is 20 plus years old. Companies on average have 2.7 distribution centers with a material handling system that is 15 years old. These statistics indicate that many of today’s material handling systems have considerable age to them and they may be a source of operational concern going forward.

The survey next examined the extent of the issues caused by aging material handling systems. The top two responses indicated the lost of employee productivity by 18.2% and 18.2% of system downtime is evident when a material handling system has reached its useful life. “It’s scary the number of times I have visited distribution centers and have found maintenance managers piecing together equipment to keep it working,” said Dale Pickett, Director of Supply Chain Services, Tompkins International. Interestingly, 83% of company leaders are aware of the aging status of their material handling systems.

The business risks are real and can potentially be significant if a material handling system fails. Many companies use financial measures to assess when equipment is ready for replacement or an upgrade. This seems logical but experts at Tompkins International believe this is only one part of the equation when evaluating a material handling system replacement.

Visual: Infographic

About Tompkins International

Tompkins International is a supply chain consulting and implementation firm that maximizes supply chain performance and value creation. We enable clients to be more profitable and valuable, while also becoming more agile, flexible, and adaptive to the marketplace. Tompkins collaborates with client teams to develop improved operations strategies, supply chain planning, and execution across all the Mega Processes of supply chains (PLAN-BUY-MAKE-MOVE-DISTRIBUTE-SELL). Tompkins is headquartered in Raleigh, NC and has offices throughout North America and in Europe and Asia.

CONTACT:
Andrea Epstein
, aepstein@tompkinsinc.com

Twitter: @jimtompkins
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Creating Supply Chain Excellence Blog

 

Press Release

The Age of Material Handling Systems Will Affect Business

RALEIGH, NC – Many material handling systems used today are beginning to show their age. What were once considered brand new systems are now deteriorating and fighting to stay current. With information collected in a recent survey to retailers, manufacturers, wholesalers, and third-party logistics firms, Tompkins Supply Chain Consortium is able to provide important data regarding the age of material handling systems.

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