Ageing systems threaten distribution

News Story
- 9 Apr 2015 ( #713 ) - Raleigh, NC, United States
2 min read
A new report warns that US materials handling systems are "showing signs of ageing".

A survey by supply chain consulting and implementation group Tompkins International found the average age of a materials handling system is 15.3 years.

"What were once considered brand new systems are now deteriorating and fighting to stay current," the report notes.

The study found that more than a third (35%) of companies have at least one materials handling system that is 20-plus years old.

Companies on average have 2.7 distribution centres with a materials handling system that is 15 years old.

"These statistics indicate that many of today's materials handling systems have considerable age to them and they may be a source of operational concern going forward," the report warns.

Among the consequences of this ageing is loss of productivity, with downtime causing a drop of around 18%.

"It's scary the number of times I have visited distribution centres and have found maintenance managers piecing together equipment to keep it working," says Dale Pickett, director of supply chain services at Tompkins International.

The report points out that the business risks are real and can potentially be significant if a materials handling system fails.

Executive director Bruce Tompkins warns that with systems this old, the probability for excessive downtime is great and the chance for a complete system failure clearly exists.

"Depending on the robustness of your distribution network, the downtime and failure could cost you significant lost sales, unsatisfied customers and increased operating costs. The failure of your system could put a DC/FC out of commission for an extended period of time.

"This is a huge risk to take with potentially a lot at stake.

"Don't make the mistake of assuming everything will be fine. Do a detailed assessment of the health of your materials handling systems and consider improvements, upgrades and, possibly, replacements of equipment and controls.

"Hoping isn't a good strategy when it comes to critical materials handling systems."
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