Let’s explore the holdbacks to purchasing new equipment. Ethics, safety, company culture and environmental concerns can all affect the decision-making process. Prioritizing capital expenditures can also be challenging as there can be competing projects for the same funding.
While there is a cost to purchasing new equipment, there is also a cost companies incur when choosing to defer or NOT purchase a required piece of machinery.
Holdback: ‘The technology is too new and I don’t want to make a mistake’.
At some point, every product is considered ‘new technology’. William Durant changed his mind from thinking automobiles were just a fad to purchasing the Buick Motor Company in 1904. By 1908, he made Buick Motor Company the nation’s largest automobile producer! In 1990, Sydney Brenner was quoted as saying “The modern computer hovers between the obsolescent and the nonexistent.” Can we imagine living without computers today? And how about this quote: “There is no reason for any individual to have a computer in their home”, Ken Olson (President of Digital Equipment Corporation) at the Convention of the World Future Society in Boston in 1977. What would Mr. Olson say about the multiple electronic devices in each household across North America today?
If you are an operations manager and don’t want to purchase a Destuff-IT™ for fear new technology may be buggy and/or prone to malfunction, we get it. Let’s face it — conveyors have been around for decades & their functionality is understood. Many potential customers think Destuff-IT™ machines are brand new, but in reality, these machines have been in the marketplace since 2010. They have been installed in multi-national companies and have proven themselves to be an effective solution for inbound and outbound docks. Early adopters have found the effectiveness of the Destuff-IT™ to more than offset the initial cost of purchase.
Pilot tests for Destuff-IT™ products show 128% improvement in cases/hour. A major distributor of wine & spirits in Canada is an early adopter of the Destuff-IT™. In 2010, they installed the first of 11 machines at their unionized multi-shift facility in Toronto, Ontario. As of March 2016, they continue to use their machines; many with over 40,000 hours of operation and still going strong.
HOLDBACK: ‘I don’t like the capital cost of purchasing’.
Not interested in the capital expense of owning a machine? Why not consider leasing or renting a machine? Benefits of leasing include conserving cash; 100% financing and preserving your lines of credit. Renting a machine is another option. For approximately $2000/month, a Destuff-IT™ machine could become a means of improving efficiencies in your operation.
HOLDBACK: ‘I don’t feel I know all the facts to make an informed decision.’
Since 2010, the Destuff-IT™ has been a part of numerous pilot tests throughout North America. Each test collects data and metrics of the Destuff-IT™ and identifies efficiencies and productivity. Speak with a Technical Salesperson about having your own ROI report prepared. Read Destuff-IT™ Case Studies to gain insight into actual installations. Productivity gain reports are also available for review.
HOLDBACK: ‘I am so busy in my job that I don’t have time to investigate the benefits of this machine’. There is a cost to not knowing. Opportunities for realizing savings will slip by as time passes. Remember, the best time to solve a problem was last year; the second best time is now.
HOLDBACK: ‘We hire a Lumping Service to do the unloading/loading, so we don’t need a machine’.
A time/cost analysis is needed to compare the Destuff-IT™ to other methods of unloading. Evaluation of time to unload, cost of the service, volume of containers per day are all needed to see if there are savings to be realized in your facility using a Destuff-IT™ machine. Speak with a Technical Salesperson about having your own ROI report prepared based on your current method of unloading in contrast to assisted unloading with a Destuff-IT™ machine. You want know if there is a savings or not until you go through the ROI process.
HOLDBACK: ‘I don’t believe the facts even after seeing an ROI report’.
The claims of the Destuff-IT™ are true. See for yourself by inquiring with one of our Technical Salespeople and scheduling a demonstration at your facility or one nearby.
HOLDBACK: ‘We have a union and there is difficulty in adopting new technology based on fear of job losses’. One early adopter of Destuff-IT™ machines was a distribution and warehousing facility for vintage wines & spirits. The job of unloading was well known among union workers to be a nasty job. Rather than fearing job loss, unionized workers embraced the machines because of their effectiveness in relieving physical stressors of the work.
MM&D | May/June 2014 Quotation from George Soleas of LCBO, “The equipment is so simple, employees required very little training, but in the early days, we needed to remind them that the Destuff-IT™ was there to do the heavy lifting and that we wanted and expected them to take full advantage of the equipment,” …. At the Durham location alone, the LCBO expects to save about $121,000 annually since the Destuff-IT™ boosts productivity by cutting the average time required to unload a container by more than half. In this application it can handle 650 cases/hour up from 575 cases/hour. Previously, it was a two-person job but with the Destuff-IT™, one person can unload a container, which has resulted in labour savings. “The ROI on our investment was approximately nine months and over a consecutive three years, thanks to enhanced ergonomics, training, standard operating practices, culture changing initiatives and to an extent our new Destuff-IT™ units, our logistics departments have experienced an 82 percent reduction in lost-time accidents and a comparable decrease in WSIB expenses,” says Soleas.