KMHS’ Complete Fleet Management: A Win-Win Partnership

OVERVIEW

Kenco’s customer was spending a large amount of money on forklift leases and maintenance on equipment that was less than two years old. Kenco Material Handling Solutions (KMHS) stepped in to reduce lease costs with their purchasing power as a forklift dealership and maintenance costs with in-house technicians fully-trained in servicing material handling equipment (MHE). KMHS brings the mindset of developing long-term relationships by having open communication and the customer’s best interests in mind, not how much can be billed per month.

CHALLENGE

Kenco’s customer was spending $19 million annually on material handling equipment prior to partnering with Kenco. Kenco Material Handling Solutions stepped in to implement a more cost effective and efficient MHE solution.

SOLUTION

KMHS visited the facilities and performed inspections on all material handling equipment. KMHS provided the customer with a detailed list of service items that needed to be performed in order to get the equipment up to standards. KMHS provided a full maintenance rate per unit so that most of the maintenance costs would be a fixed monthly amount, making it easier for customer budgeting and billing.

KHMS’ in-house service included the following for the customer:

These areas allow for excellent delivery of cost savings and customer service. The General Manager of one of the DCs serviced by KMHS states, “on-site team works well with my management team and reacts quickly to any needs that may come up throughout the day. Overall, every aspect of this area has improved.”

RESULTS

Kenco proposed a more realistic schedule of replacing the customer’s MHE fleet. This proposal would replace equipment over a five year time period and would ultimately bring the customer $23 million in total cumulative savings.

 

KMHS was initially awarded 4 of the customer’s Regional Distribution Centers in the United States. Within 6 months, they were awarded 1 additional site in Toronto, Canada. Ultimately Kenco Material Handling Solutions was awarded this customer’s entire Supply Chain Network of facilities across the US and Canada.

The customer’s Supply Chain Asset Manager, responsible for their entire supply chain, stated that “Kenco Material Handling Solutions has delivered solid, month over month results. Regarding our MHE fleet, they've proven their performance and exceeded my expectations.”