Forklifts have gone high-tech, but not everyone needs all the bells and whistles. Here's how to determine when a more basic truck might be the right way to go.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
In some ways, figuring out what you need in a forklift is a lot like deciding what kind of car to buy. Some people need basic transportation just to get from one place to another; some drive long stretches and need dependable, comfortable cars that can stand up to heavy use; and some use their cars as offices on wheels and want luxury vehicles with productivity-enhancing technologies like hands-free communication. For that reason, automakers offer a wide range of makes and models that vary in cost, features, and quality.
Similarly, forklift fleet managers have different wants and needs. That's why lift truck makers offer everything from "no-frills" trucks that will simply get your pallets from here to there, to self-driving forklifts that can tell you in near real time where they are and what's going on under the hood, along with midrange models that fall somewhere in between the basic and premium types. How wide a range of equipment an OEM (original equipment manufacturer) offers varies from one provider to another. Some only serve the basic to midrange market, while some sell midrange and premium brands. A few that manufacture premium equipment also offer basic value-priced brands as well. Some examples of the latter include Kion Group (Baoli), Hyster-Yale Group (Utilev), and Crown Equipment Corp. (Hamech).
Many operations don't require all the bells and whistles that are available in some of today's high-tech forklifts. For them, a basic "value" lift truck may fill the bill. A value truck generally is low-cost and price-competitive; is based on commonly used engine, body, and transmission designs; and does not include features that add a significant amount of cost. It may not be as fuel-efficient as more expensive trucks, and it typically will not have technology "extras" like automatic slowdown or the ability to automatically stop at a specific rack height, says Jerry Weidmann, president of Wolter Group LLC, a Brookfield, Wis.-based company that includes five material handling and power systems businesses across the Midwest. Wolter Group represents 15 forklift manufacturers, including the basic and midrange brands Baoli, Cat Lift Trucks, Doosan, Komatsu, and Mitsubishi, as well as premium brands like Jungheinrich and Linde.
How do you know when a basic no-frills forklift would be the best choice? Here are some recommendations on when to keep things simple—and why.
FACTORS TO CONSIDER
It's important to understand that "value" or "basic" does not necessarily equate to "cheap" or "low performance." Certainly, some end users buy "disposable" lift trucks—very low-priced vehicles that last for just two or three years—and consider buying and replacing them to be a cost of doing business. But manufacturers typically use the term to mean something very different. For instance, Lexington, Ky.-based Clark Material Handling Co., which celebrated its 100th year in 2017, defines its "value forklifts" as vehicles that offer limited options and faster delivery than more customized equipment, says Jeff Arnold, product support manager. Limiting options and sticking with standard, commonly used chassis, parts, and designs lets manufacturers reduce overhead and production costs, and therefore keep the selling price low. But limiting options doesn't mean limiting performance and durability, he says; a value truck can incorporate improvements in engines, drivetrains, and other components that also appear in premium forklifts. "It's really not a matter of technology; it's more about the approach to design and manufacturing quality," Arnold says.
As the example of "disposable" lift trucks suggests, initial purchase price is the No. 1 priority for some who are looking to buy, lease, or rent value trucks. "A 'mom and pop' shop may not have the capital to buy based on the total cost of ownership," Arnold observes. "In a case like that, the initial purchase price can be driving the decision because they have such a limited budget. Sometimes, it's the only perspective they can take."
But Arnold and the other experts we consulted for this article agree that, just as with any type of lift truck, end users should consider a host of factors besides the initial purchase price. "While purchase price is always an important factor, it has become less of a priority for businesses over the last several years," says Shawn Jones, vice president of sales/warehouse solutions at Briggs Equipment, a full-service distributor of material handling and warehouse equipment with operations in the Southern U.S., the United Kingdom, and Mexico. Briggs represents lift truck brands across the price and application spectrum, including Hyster, Yale, Manitou, Combilift, and heavy-duty outdoor forklifts. "The professional fleet managers we interact with today ... their focus is on the total cost of moving their product over a period of time—not on the upfront cost of equipment," Jones says. That total cost, he adds, includes the cost of the equipment over time, the efficiency/productivity of the equipment, the energy source needed to power it, and the employee(s) required to operate it.
Keep in mind, experts say, that the more a forklift is in use, the lower its total per-hour cost to operate. Even a high-priced lift truck that runs a lot of hours in a year can cost less to operate on an hourly basis than a low-priced forklift that spends most of its time in park.
With forklifts, the greater the number of hours the equipment will be used and/or the greater the severity of the application, the more sophisticated the equipment that will be needed.
Once the basic specifications have been determined—for example, required load-lifting capacity, maximum height and width, and maximum fork height required—the decision becomes a matter of price vs. complexity. The greater the number of hours a piece of equipment will be utilized and/or the greater the severity of the application, the more sophisticated the equipment that will be specified, Weidmann says. (See Exhibit 1.)
Small distributors, manufacturers, or other types of operations that move pallets or unload trucks once or twice a day, and where a forklift will be used fewer than 1,000 hours a year probably will get the functionality they need from a value truck. A forklift that is going to be used 3,000 hours per year, however, must be highly productive, making expensive productivity-enhancing features like the ability to control travel, lift, and lower speeds necessary, in Weidmann's view.
The other main consideration when choosing between a no-frills lift truck and a midrange or premium truck is the application for which it will be used. For example, running pallets just a couple of hours a day around a moderate-sized flat-floored facility with fairly low rack heights will place relatively low physical and mechanical demands on a forklift, and a value truck may be all that's needed. A more rigorous application, such as carrying or pushing very heavy loads, traveling up and down inclines, operating in extreme temperatures, or running multiple shifts six or seven days a week, would require a forklift specifically designed for harsh duty cycles. That will necessarily drive up costs but will also provide the required level of performance, Weidmann says.
In addition, basic trucks aren't big on ergonomics—those cushy automobile-like seats are expensive—but that won't have a significant impact on an operator running a truck just one or two hours a shift. For an operator who's on a piece of equipment all day, however, seat comfort, accessibility and ease of use of controls, vehicle noise level, foot room, and so forth are extremely important for reducing fatigue, improving concentration, and minimizing injuries.
What if circumstances change, and you need more capabilities in an existing value truck? It is indeed possible to add technology such as fleet management software and some kinds of ergonomic enhancements to basic forklifts. "Modern material handling equipment is designed with technological modularity—the ability to bolt on functionality as needed," says Dan LaMendola, fleet manager at Briggs Equipment. He cites telemetry, the collecting of data at the point of use and making the data available to a separate user base via a remote server, as one example. Most telemetry systems, he says, can be deployed at the factory or out in the field once the material handling system has been put into operation, and for some time after that. That kind of flexibility is one of the greatest benefits provided by the technological and ergonomic advances that have taken place in the last decade, LaMendola adds.
The core of the lift truck can't be changed, however, and there are limits to what add-on technology can do on a low-end truck with a basic engine, electronics, and instrumentation. End users that want a lot of data and analysis, as well as the ability to collect a wider array of information in the future, will have to invest in more sophisticated technology. In that case, Arnold, suggests, it would make sense to move up to a "smart" truck that's designed to accommodate more advanced technology and can provide the full range of capabilities the end user needs for its particular application.
GO TO THE PROS
Where can end users turn for guidance when deciding which type of truck would best fit their requirements? "Everything starts with dealerships," says Arnold. "They're the front line for what the customer needs." Lift truck dealers will conduct site surveys to make sure they match the correct truck to the application; if needed, they will turn to the OEM's sales, engineering, and product-support experts, he adds.
Regardless of whether you're in the market for an entry-level value truck, a technologically advanced premium piece of equipment, or something in between, one thing applies across the board. The key to getting the right truck for your needs is to gather information about its intended hours of use and applications—and then communicate that clearly and accurately to your dealer.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.