Maximizing Efficiency and Safety with Vehicle Management Systems in Material Handling Operations

Powered industrial trucks, commonly known as forklifts, play a vital role in material handling operations, serving as the workhorses in warehouses, distribution centers, and manufacturing facilities. However, effectively managing these fleets can be challenging, and accidents involving forklifts are not uncommon.

According to a summary of investigation results by the Occupational Safety and Health Administration (OSHA), over 11% of all forklifts are involved in some type of accident each year. Furthermore, companies often overlook hidden costs associated with running a forklift fleet, such as operator labor, which represents the single largest cost component of material handling operations. Lack of visibility into fleet operations can make managing industrial vehicles difficult and lead to increased costs for acquiring and maintaining the vehicles.

To address these challenges, many successful companies worldwide have adopted Vehicle Management Systems (VMS) enterprise wide. VMS enables businesses to better utilize labor resources, enhance safety, and maximize profits and material velocity. However, there are still companies that lack true visibility into material handling movements, struggle to measure operator productivity, and have no efficient means to ensure safe vehicle operation.

What Are Vehicle Management Systems?

A Vehicle Management System starts with vehicle access control, which restricts who can operate the trucks. Operators are required to present their badge ID to a card reader installed on the truck's ignition to start the vehicle. The system only allows authorized operators to start the vehicle, ensuring greater accountability.

VMS helps address key questions related to fleet operations, such as:

• Are operators driving safely?
• What causes variations in task completion times among employees?
• How can the true engineering standard for a specific task be measured?
• Is the fleet size appropriate for the workload?
• How to manage overtime efficiently?
• What is the best way to forecast future vehicle and operator needs?
• How can vehicle uptime be increased through better maintenance?

The FIVE Key Reasons to Consider Vehicle Management Systems:

1. ?Operator Labor Efficiency: VMS data has shown that operators are often paid for three to four times more hours than the actual material movement time. By tracking and measuring precise vehicle use, VMS can identify the most and least efficient operators, leading to significant productivity improvements.
2. Integration with Warehouse Management Systems (WMS): VMS complements WMS by providing data on material movement between tasks, leading to up to 30-40% improvement in productivity and decreased task times.
3. Incentive Pay and Overtime Control: VMS allows modification of performance metrics based on actual motion hours, ensuring fair and accurate incentive pay. It also helps monitor and control overtime pay to optimize labor costs.
4. Refining Engineering Standards: VMS collects data from multiple drivers over time, allowing for the refinement of engineering standards for tasks based on actual data.
5. Efficient Vehicle Allocation: VMS provides unique insights into fleet operation, enabling better allocation of vehicles and resources, reducing the need for new vehicle purchases.

The Hidden Costs of Maintenance: VMS helps optimize maintenance costs by scheduling Preventative Maintenance (PM) based on actual motion hours, reducing PM costs by nearly 50%. Electronic checklists also enable real-time identification of small problems, preventing costly repairs and reducing vehicle downtime.

Enhancing Safety and Compliance: VMS enforces daily vehicle safety checklists and authorizes access to vehicles, ensuring compliance with OSHA safety regulations. By identifying unsafe driving behaviors, VMS contributes to a safer work environment for both drivers and pedestrians.

The Workplace Standard: VMS adoption is becoming more common as companies seek to maintain a competitive edge and increase productivity. The proven return on investment, increased efficiency, and improved safety have made VMS an essential tool for many successful businesses.

When considering a VMS vendor, several critical factors need to be evaluated:

• Compatibility with truck manufacturers' warranties.
• Versatility to work on any type of truck.
• Experience and best practices of the vendor.
• Integration capabilities with existing systems.
• Collaboration with the vendor to achieve ROI within a short time frame.

In conclusion, Vehicle Management Systems offer a comprehensive solution to the challenges faced in managing industrial vehicle fleets. By implementing VMS, companies can enhance efficiency, ensure safety compliance, and optimize labor and vehicle resources, leading to significant cost savings and improved operational performance. With VMS becoming the workplace standard, companies must act swiftly to stay ahead in today's competitive market.

Visit Powerfleet at www.powerfleet.com/material-handling-telematics

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