Warehouse Equipment Tutorials

Warehouse Equipment Tutorials and Video Guides – Used material handling equipment, products and solutions. What is pallet racking, cantilever racking, roller conveyor, carousels.

Auction Buying Secrets – 7 Rookie Mistakes You Should Never Ever Make

by

So it’s your first auction and the place is full of people and excitement. The auctioneer is barking out bids, numbers and prices. People all around you are bidding on an item like it’s a long-lost childhood toy. You notice that some item you have just seen in the store sold for a fraction of the store price. A second item comes up and it goes for yet another great bargain. You think, “Wow, this seems like a pretty easy way to get things dirt cheap. Maybe I should bid and get in on the action. How hard can it be anyway…right?”

Wrong!

While great buys can be had at auctions, the opposite is also true. Getting stuck with something that isn’t what you thought it was can (and more often than not, does) happen. Below are some pro tips that you can use to avoid costly mistakes. Following the tips will save you a lot of grief and expense and give you the tools you need to bid like the pros.

#1 – Hidden costs

While auctions provide a means for anyone to find a bargain, it’s important to keep in mind many of the hidden costs often associated with auction buying.

Buyer’s Premium/Commissions

Most, if not all auctions have what is called a buyer’s premium. This is an additional fee that is put on all items sold at an auction. This fee can run anywhere from 10% to 20% of the item’s sell price. This cost is an additional fee that you will be charged for items you buy in addition to the price you bid. Beware – buyer’s premiums can add up very quickly. Auctions can often have different buyer’s premiums for those bidding online and those physically bidding at the auction. Every auction is different so take note of what these costs are and which fees apply to you before you bid.

#2 – Do a detailed inventory and inspection

If I can give you two pieces of advice here – it would be these:

  • Don’t assume all the parts or there.
  • Don’t assume missing parts can be requisitioned or repurchased.

I’ve seen to many rookie bidders thinking they got a great buy only to discover later that the items are no longer in production or the manufacturer is out of business. Do a detailed inspection of items to make sure all necessary items (ie. hardware, parts, controls, manuals etc.) are there. If parts are missing make sure replacements are available and have an idea of what the costs will be to fix, repair or replace what is missing before you bid.

#3 – Taxes & Fees

Depending on the location of the auction, be aware that different states have different rules about what taxes or fees they want you to pay. Some states are nothing some are 6% – 8% or more.

#4 – Remember…there are no “Do-Overs”

What that means is that “What you see is what you get!” and “You buy it, you own it!”

If an item you bid on doesn’t run or isn’t what you thought it was, you have NO RECOURSE later. The auctioneer is not going to give you your money back or allow you to back out of a purchase once you buy it. It is your responsibility to know what it is you are bidding on – NOT the auctioneers. Items purchased thru auctions are inherently sold “as-is, where-is” with no implied guarantee or warrantee.

Caution: Auction bidding is a fast paced game for grown-ups – not victims. At auction, you sign the auction’s terms and agreement paperwork before you are allowed to bid. This agreement is a legally binding contract that says you know what you are doing and what you are bidding on, and you assume all liability to pay for whatever you buy in the condition it is in when you buy it. If you bid on an item thinking it works or runs only to find out later it doesn’t – too bad. In other words – you buy it, you own it.

#5 – Removal Costs

Never forget, unless specifically stated otherwise, everything in an auction is sold “as-is, where-is.” If the equipment you purchased requires dismantling and/or removal, YOU (as its new owner) will be responsible for the disassembly and removal of the item – not the auctioneer or former owner. This can be very expensive.

#6 – Time Costs

Related to removal costs are time costs. There are often very short time frames and/or restraints for removal that you will be responsible to adhere to. Failure to comply with these can result in fines or legal action and even forfeiture of the equipment. The time you have to remove the item can also drastically affect the final sale price you and others may be willing to pay. I have seen time frames for removal that range from the same day as the auction to several weeks or even months. Know when things need to be removed before you bid.

#7 – Transportation

Items to big to move by yourself may require additional people or equipment to move. The auctioneer IS NOT going to do that for you. Don’t bid on items that will require you to hire or requisition additional people unless you know the costs of doing so in advance. With fuel prices on the rise, having to freight items across long distances can be very costly. Again, know and factor in all the costs before you bid.

There you have it – as with any great deal – the devil really is in the details. Please feel free to comment or share other auction tips or tricks in the comments below.

Pallet Racking Conditions – What to Know Before You Buy

by

Fact: There are more pallet rack options available to you now than at any time in history.

Fact: There are very significant differences between New, Used & Refurbished pallet racking.

Fact: You think you know everything there is to know about each – but really, you don’t.

The fact is, what one dealer says can often conflict with what another dealer says. As with any industry, there are several ways of doing something, but there are only a few ways of doing it right. The following article will give you some insight into what the differences may be between not only new, used & refurbished racking, but also the differences between the offerings from dealer to dealer.

New Pallet Racking

As you’d expect, new pallet rack is exactly what the name implies. New pallet rack is typically sold through authorized rack distributors. Rack distributors fit into two main categories: Stocking & Non-Stocking. The pricing that distributors provide can vary considerably. Stocking dealers and dealers who sell a larger volume of rack generally will get the best discounts from the manufacturers and will usually offer the best pricing to the customer.

Non-stocking distributors do not stock pallet rack, but rather buy & ship it directly from the manufacturer as they produce it. For this reason, rack purchased from non-stocking distributors will usually have a much longer lead time (4-12 weeks.) Rack purchased from stocking or non-stocking distributors typically comes with the same manufacturer’s warranty.

Used Pallet Racking

Used rack is rack that has been previously utilized by others. Used pallet rack can be found in conditions from ‘like-new’ with a few scratches to completely rusted or bent in places. Used rack can be a good investment for those looking to save money as long as the buyer takes some precautions. It is critical to validate not only the condition of the rack prior to purchase, but also the reputation of the dealer selling it. Start by finding dealers who have been in business for several years – the more the better. Check their web sites and avoid companies that don’t provide photos & descriptions of their equipment or if they don’t show pricing. The web site should also provide you with a physical address where the company resides, a phone number and the names of people you can talk to. They should also be able to verify that they own the equipment. Avoid dealers who will not let you inspect the racking before purchase. If the racking looks good and there’s little rust, the components should still have the same strength and capacity ratings it had when it was new.

Refurbished Pallet Rack

Refurbished pallet rack is another option available to rack buyers who want a lower priced alternative to new racking. Because there is little to no industry standardization for the term “Refurbished,” it is a good idea to ask what steps the supplier takes in their refurbishing process. While some dealers do a complete break-down, inspection & repair of the materials, some do not. The point is that not all refurbishing processes are the same. To make sure you’re getting what you pay for, equipment advertised as refurbished should go through many if not all of the following steps:

Inspection

Each piece to be reconditioned is thoroughly inspected. Components that are found to be damaged, cracked or bent should be repaired or replaced by experienced professionals. Replaced components should equal or exceed the manufacturer’s original specifications.

Clean & Prep

During this stage, all stickers, tags, etc. should be completely removed (not just painted over.) Dirt, debris and rust should also be removed prior to paint. Chemical baths or wire brushes are the preferred methods of removing dirt or rust prior to painting. While sand-blasting may be a cheaper process, it can remove some of the metal from the racking which can compromise the structural integrity of the product. No matter what method is used, make sure your dealer can confirm and will stand behind the original capacity rating of the rack.

Paint

Items that have passed the prior two steps are ready for paint. There are many different methods of painting. Whatever method is chosen, it should utilize paint that is specially formulated for industrial applications. For industrial applications, powder coat, epoxy & heated enamels are superior to cold applied spray or latex.

Renewed

Recently a new condition was introduced to the material handling industry. This ‘Renewed’ equipment provides “like-new” material at prices competitive with used or refurbished. Renewed products are manufactured as a blend of new & pre-owned materials that when combined, create a fully warrantied hybrid product that until recently, didn’t exist in the marketplace. Currently, SJF Material Handling is the only company offering renewed pallet rack.

Top 5 Things to Double-Check on a Pallet Rack Quote

by

So you’ve finally gathered the 3 competitive rack quotes that your boss requested a week ago. Now it’s time to sit down and give them a good looking over. While you may be tempted to simply look at the bottom line on each quote, you’ll want to first make sure you’re really getting the best price – not just the lowest.

5 of the most overlooked items on every pallet rack quote after the jump…

Read more

7 Tips for an Improved Warehouse Workflow

by
7 Tips for an Improved Warehouse Workflow

From managing logistics and layout to ensuring optimal safety and efficiency, warehouse workflow is more than just the speed of output. A quality warehouse manager knows how to utilize their best tools to achieve maximum optimization but even the elite need a refresher of best practices to keep things running smooth.

Here’s our list of 7 Tips for an Improved Warehouse Workflow:

1. Laying out the warehouse for optimum space utilization

The most important job of any warehouse manager is to determine how to best use the available floor space to store and move product. Especially in high dollar real estate markets, every inch counts! Ideally, the process begins with a complete drawing of the space including posts, sprinklers, windows, doors and any other architectural fixtures that will have to be taken into account. Then, the warehouse manager must clearly understand the inbound and outbound operations with the goal of maximizing space utilization while also saving time and reducing errors as product is moved in and out of the warehouse.

2. Using the proper type of storage systems

Choosing the proper type of storage system is an essential component of warehouse workflow efficiency. Understanding what is being stored, how much of it is being stored and how often it needs to be accessed will determine the most efficient storage system to use. Factors such as product expiration, temperature requirements and product demand must also be factored into the type of storage system chosen. Storage systems can be mixed and matched to meet the various product rotation needs within the warehouse. The speed and frequency of vehicles (such as forklifts) moving through the warehouse will dictate the durability requirements of any storage system.

3. Picking optimization

Within the warehouse layout, pick routes must be carefully planned. Minimizing travel through the warehouse will result in significant time savings and reduced potential for accidents. No matter how large the warehouse is, the amount of time spent picking product represents a significant part of costs. Organizing pick routes to match pick lists is a great way to reduce going back and forth through the aisles.

4. Properly managing inventory

A surprising number of companies do not know exactly how much inventory they have and exactly where it is stored. It is impossible to run an efficient workflow without this knowledge. More organizations that do a good job of inventory management are adopting lean inventory practices—only storing what is actually needed. The benefits of lean inventory management include time savings and waste reduction which translate to cost savings. Inventory must always be properly labelled to ensure proper counting, storage and retrieval. There are a number of different ways to keep track of inventory, from manual processes to highly automated, integrated systems.

5. Using Technology

While some companies are still using spreadsheets and other manual systems to manage their operations, the vast majority have adopted at least some technology to help them manage their warehouse. There are a plethora of WMS (warehouse management system) options available today that can help you manage standard as well as daily tasks such including labor, inventory, order processing, SKU handling, stock location and more. WMS’s can be standalone systems or part of a full ERP (enterprise resource planning) system. Always make sure WMS modules are linked and integrated to ensure smooth operation of the system as a whole and that users are fully trained on all software systems. Aligning IT and operations for a common understanding of business processes is a must.

6. Keeping the Warehouse Tidy and Orderly

Cluttered and disorderly aisles not only create safety hazards, they greatly impede the ability to move through the warehouse efficiently. Allocating even a little bit of time every day to clearing the aisles will immediately improve workflow. Consider posting SOP’s where appropriate, within the warehouse.

7. Maintaining Health and Safety Best Practices (including training)

Worker safety is of utmost importance to any company. Making sure workers are fully trained to do their jobs before they start doing them is always the best practice. Spending more time training will pay back many times over in not only accident reduction but error reduction as well. Consider cross-training workers to be able to perform more than one type of job so you can keep your operation moving at all times. Provide refresher training to make sure all workers are current in your processes and work standards. Clearly marking travel paths, for forklifts and people, and keeping them clear of clutter is essential to creating a safe work environment. Having proper lighting will reduce potential errors in product picking as well as improve the overall environment for the workers. Posting health and safety rules and regulations where everyone can see them is required by law.

Optimizing warehouse workflow is essential to optimizing profits. As inventory and storage needs change, warehouse design should be revisited and amended as practically as possible.

About the Author: Jeff Howard is the VP of Sales for Advance Storage Products, a structural rack systems manufacturer. Jeff has over 15 years in the material handling industry and holds a BA in Economics from Denison University.

Top 5 Buying Secrets Industry Insiders Don’t Want You To Know

by

The material handling industry, as discussed in this article, represents a whopping 50-billion dollar/year business in the U.S. alone. Even so, very few people know everything necessary to make optimal buying decisions. Some people in the industry like it this way, but in this article, I’ll reveal some of the secrets these dealers don’t want you to know. I have been in this industry for over 30 years and I have learned many things that I think you, the customer, ought to know. Though I wont tell you what decision to make, I’ll give you the tools to make the right decision.

Read more