A TCM national survey of businesses operating forklift trucks suggests that there are wide inconsistencies in the way total cost of ownership (TCO) is understood and calculated.
It suggests that some fleet managers underestimate the true life-time cost of owning and maintaining a productive forklift. According to the research, unsurprisingly some managers were focusing on core operating costs such as fuel and maintenance, missing the more 'hidden' expenses concerning damage, product damage, downtime and productivity losses/gains.
Hidden costs such as downtime, product damage, additional operator costs due to lost days caused by health and safety issues as well as productivity losses caused by poor truck selection, driver experience or operational factors such as warehouse layout and routing can have a significant effect on cost which are directly attributable to truck selection and crucially service and support. Russ Barnard, SG World's Product Manager commented "You can't put a value on preventing a colleague's death or life-changing injury but a formal pre-use safety check can also help reduce these TCO costs. Identifying maintenance issues early reduces downtime and product damage, increasing productivity".