Proper Capital Expenditure Planning

Are you experiencing supply chain challenges when it comes to the maintenance of your facility? We know these challenges are not going away soon.

The way you conduct business will need to change for you to thrive. As a result, we're sharing five strategies you can implement to avoid delays created by supply chain challenges. Below is the first strategy you can implement.

A foundational understanding of when to replace equipment is built by having a clear accounting of:

1. Current equipment conditions
2. Equipment quality vs. the application and cycle usage
3. Performance in every environment to determine the life expectancy
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Ideally, a maintenance program is in place that includes a detailed inspection with proper asset configuration. This includes date of manufacture and the needed details to build this foundation of information. “Lead time increases” vary greatly in the dock and door industry, so knowing what to expect is important. For example, many (not all) dock leveler manufacturers are facing “lead times” nearing 1-year, consequently ordering equipment will need to be done much sooner than in the past. In addition, the employee, raw goods, manufacturing shortages, and shipping delays are likely and should be expected. Factoring in the uncertainties listed above for equipment purchases/updates is a great practice.

Typically, you don’t have failure before your new equipment arrives, and if it arrives early that’s OK. If you’re still skeptical about ordering early, ask yourself these questions:

1. What is the cost to your organization caused by down equipment?
2. How does down equipment affect your relationship with your client’s or partners?
   
   

Compare the amounts from the questions above with the cost of buying an asset a few months earlier and consider the total in costs when you don’t take “lead times” into account.

No one likes surprises, why create one more?

P.S. See more tips like this on our LinkedIn page.

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