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You are here: Home / News / Warehouse News / Warehouse executives need to upgrade, not just replace, aging gear, Tompkins survey shows

Warehouse executives need to upgrade, not just replace, aging gear, Tompkins survey shows

Average age of material handling system exceeds 15 years, survey shows. By Ben Ames As distribution center managers nationwide prepare to replace aging material handling systems, they should consider upgrading the equipment instead of simply duplicating the old gear, according to a supply chain management consultancy. "Do not replace to replace. Replace to evolve. Be smart about it," said Dale Pickett, director of supply chain services at Tompkins International, a consulting firm in Raleigh, N.C. "Every company needs to consider the right mix of equipment for what its mission is today." The problem is expected to escalate in coming years as the material handling infrastructure, both technological and physical, requires increasing maintenance and repair, according to a recent survey of retailers, manufacturers, wholesalers, and third-party logistics firms conducted by Tompkins Supply Chain Consortium, a unit of Tompkins International. Survey results showed that the average age of a material handling system is 15.3 years and that 35 percent of all companies surveyed have at least one material handling system that’s at least 20 years old. The most common byproducts are loss of employee productivity and considerable system downtime, each of which was cited by nearly one in five respondents. Other common headaches include excessive maintenance costs, lost throughput capacity, and customer service issues, the survey revealed. "These systems last flawlessly for 10 to 12 years. If you do an ROI calculation, you can be confident they will last with only minor hiccups," Pickett said. "But after 15 years, most components will have reached the end of their useful life, and you can expect failure within hours, days, or weeks." Without time to prepare for rerouting the flow of goods, that type of failure could lead to far worse problems than just a slump in productivity in the latest warehouse shift. […]

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Sue Boczenowski is the Marketing Manager for Abel Womack.

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