Logistics advice & used machines: Is it worth buying second-hand warehouse logistics, storage lifts or carousel warehouses?

Published on: September 29, 2021 / Update from: September 29, 2021 - Author: Konrad Wolfenstein

Used warehouse logistics from 2nd hand – Image: Xpert.Digital / Baloncici|Shutterstock.com

There is no question that modern devices for efficiently managing intralogistics processes in the warehouse are made for the permanent stress and strain of continuous operation. The robust construction of horizontal carousel warehouses or vertical storage lift systems is designed for a long service life, which, in addition to their efficiency in process handling, makes them a system solution that is in demand by more and more companies.

However, it is precisely this durability that makes it just as interesting for the used machine market; The devices can usually be dismantled relatively quickly and reassembled at another location. The software that controls it is also designed to be integrated into existing warehouse management systems as easily as possible.

Buy used machines cheaper

So what are the pros and cons of purchasing a used machine? Why not just buy the warehouse shuttle you need used?

To examine this, we first look at the factors that speak for old devices:

• The stable construction allows the machines to run for a long time. Made for demanding and stressful use in the warehouse, the devices are so robust that they will function perfectly under full load for many years. In addition, regular maintenance of the systems increases their service life and leads to early detection and repair of any damage. If individual parts show signs of wear, they can usually be replaced without any problems. In terms of functionality, there is little to speak against purchasing a used machine; Regular maintenance including a final technical inspection is required before purchase.
• Modern storage systems are usually constructed modularly, which allows them to be dismantled, transported to another facility and set up there in a relatively simple manner. The only sticking point could be the spatial conditions if the model, which was tailor-made for the previous user in terms of size, cannot be perfectly integrated into the new environment. If the height is not optimally used, the result would be a waste of storage space, for example.
• Modern storage systems are equipped with their own control software. However, this can be integrated into the buyer's existing ERP solutions without any major problems and can be used just as effectively with them. There is therefore nothing to be said against purchasing and using used machines from the IT side.
• If the three points described represent the prerequisite for the smooth and successful integration of older systems into your own warehouse logistics, the level of investment comes into play as a crucial point. Compared to higher-priced new devices, you can save significant costs when purchasing a used system. There are a number of providers on the market who trade in used storage equipment and subject them to a comprehensive check-up before sale to ensure functionality.

The purchase price is not important

As attractive as investing in a used machine, a paternoster or a horizontal warehouse may be for the reasons mentioned, there are decisive reasons for purchasing a new device.

Storage lift used machine – Image: Xpert.Digital / Baloncici|Shutterstock.com

• First of all, the price difference is lower than some customers would expect. The main reason for this is the low loss in value of storage systems that are designed to last. Since the signs of wear and tear are limited when used properly and spare parts can be easily obtained for most components, the value-preserving reasons mentioned above have an impact on the purchase price. Users of older machines therefore carefully calculate whether a new purchase is worthwhile for them. If there are no major changes in the internal logistics processes and the product range or sales structure remains the same, there are only a few reasons for regular exchange, as might be the case with the vehicle fleet. The market for used devices is therefore limited, which further increases the price level.
• Modern storage systems are mostly modular in structure so that they can be tailored precisely to the buyer's process-related needs. Be it the spatial conditions of the warehouse to which the system is adapted or additional software packages and settings, for example for the handling of electronic components, with which the device was equipped. The buyer of the new storage system can have the required solution tailored in detail to their own needs. Conversely, it follows that the buyer of a used unit has to compromise on the usability of the system and thus its productivity if it does not exactly meet its own specifications - which is likely to be the case in very few cases.
• Technical progress does not stop at dynamic storage systems. The long service life of the entire system must therefore always be compared to its productivity compared to the new product. Because what may have once been perfectly optimized is technically, if not outdated, then at least capable of improvement just a few years later. The rapid development of software-supported control systems, made possible by ever faster processors, leads to devices that are running more and more precisely and efficiently. But the design of the devices is also changing, as increasingly extremely robust, but comparatively much lighter and more durable materials can be used, which has a positive effect on wear. New devices therefore always have a productivity advantage over older models, which speaks in favor of buying new devices in the cost-benefit analysis of purchasing stock devices.
• No matter how well the used models are made and maintained, they are still more susceptible to signs of wear and tear. The associated higher costs for more frequent service intervals and the purchase of spare parts also have a negative impact on the cost balance of used systems.
• In the rarest of cases, the older devices are probably still subject to a guarantee from the manufacturer with which they equip their new products. Associated services such as free service units from the manufacturer's specialists or the exchange of defective components are no longer applicable for used machines. In addition to the higher costs, this also requires greater administrative effort for researching, purchasing and installing the new parts.
• After the new purchase, the machine is installed to size and supervised on site by the manufacturer's specialists. They ensure that the device fits perfectly into the new environment and that everything runs smoothly. This is also not the case with older models.
• Before the new purchase is made, it is carefully checked that the customer's operational ERP system works optimally with the software of the new storage device. Only if the machine control can be smoothly integrated into the customer's warehouse management software will the new device really work effectively.
• The basis for purchasing a new system is the trusting cooperation between buyer and manufacturer. This partnership is worthwhile for the buyer, even if there are no problems with the new purchase. In addition to a permanent contact person for all questions about the devices or the software installed in them, service measures and training following the purchase are also among the additional services that the manufacturer provides, in contrast to the middleman.
• In addition, there is the not inconsiderable markup of the middlemen, which consists on the one hand of the costs for transport and inspection of the used devices and on the other hand of their profit markup. Combined, this adds up to an additional cost that not insignificantly reduces the price advantage of the cheaper investment. In comparison, the difference to the purchase price of a new storage system is no longer as high as expected.
• The purchase price can be stretched through monthly payment installments. Manufacturers often offer leasing solutions, which help to radically reduce initial investments. It is a cost-effective solution for interested parties who shy away from the high start-up costs of a new purchase. You will usually look in vain for such leasing offers from intermediaries.

Finally, it can be said that it is always advisable to contact the intralogistics provider with the devices of your choice directly before purchasing in order to clarify the conditions for new advertising. The comparison has shown that this is often the more efficient solution in the medium and long term. It is often only during such an expert discussion that the interested party becomes aware of the process accelerations and productivity increases that can be achieved through the use of dynamic storage and retrieval systems. And it is precisely these that make buying a new one seem cheaper overall. No wonder with an ROI that is usually between 12 and 24 months.

Logistics consulting: Xpert.Plus for planning and consulting in the area of ​​warehouse logistics for carousel warehouses and storage lifts

Xpert.Plus is a project from Xpert.Digital. We have many years of experience in supporting and advising on storage solutions and in warehouse optimization , which we bundle in a large network Xpert.Plus

Konrad Wolfenstein

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