Forklifts play a crucial role in the operations of a cross docking facility or other 3PL warehouse distribution centers. When it’s time to replace a forklift or multiple forklifts, what should you do with the old equipment?
In providing cross docking and other 3PL services, FW Warehousing has had to deal with these situations before and offers these potential options companies may want to consider for their old lift trucks:
- Trade In – If the lift trucks being replaced are relatively young (with less than 10,000 operating hours logged), their value may be high enough that a lift truck dealer will offer a reasonable trade in offer on the purchase of new equipment.
- Sell – While companies may be able to sell used forklifts directly to another end user, due to potential liability issues, an organization may want to sell their used equipment to a third-party broker who repairs and resells them on the secondary market. It’s a viable way to recycle equipment. These brokers may also breakdown old lift trucks and recycle (refurbish and sell) their parts or scrap them.
- Redeployment – If an organization has facilities or operations that require light duty or low hours of lift truck usage, it may make sense to reassign older lift trucks from frontline service in higher usage facilities or operations to these secondary roles. The operating cost per hour of this old equipment may be higher than with brand new equipment, but it still could be cost effective in some cases. However, if the trucks are beyond their optimal economic life, it may be better getting rid of them. Constant repairs and downtime will drive costs up and productivity down.
- Keep as a Backup – If a company has one or more lift trucks that are becoming too expensive to operate as part of their daily fleet, but are not yet fully depreciated, that equipment can be put into a backup role as spares. These older forklifts can then be used to fill in for short periods when newer units are out of service for maintenance. Keeping spares will reduce or eliminate the need for rentals when frontline trucks are offline.
- Keep for Spare Parts – Depending on the size of a fleet and the makes and models of trucks the trucks in service, companies might retire older trucks and keep them on hand as a source of spare parts.
- Scrap – A last option to consider is to sell the equipment for scrap. Depending on the demand in the local scrap market, the typical scrap value of a truck might range from $1000 to $1500, but will vary based on the condition, as well as the make and model of truck.
FW Warehousing is headquartered in St. Louis, Missouri with Midwest warehouse distribution centers in Kansas City, Indianapolis and St. Louis totaling more than four million square feet. Founded in 1949 with a focus on food-grade storage, FW later broadened its services to include contract warehousing, dry storage, hazardous material and chemical storage, temperature-controlled storage, product distribution and B2B and B2C fulfillment.
FW Warehousing has more than 50 years of experience in third-party 3PL logistics and has been ranked in the top 100 Third Party Logistic Companies in the country by Inbound Logistics magazine.
For more information about FW Warehousing’s full range of logistics services including cross docking, visit the FW Warehousing website.