HCO Innovations is a materials handling assessment company that provides comprehensive evaluations and solutions for your company’s forklift operations. We guarantee to reduce your overall expenses and costs while increasing operating efficiency and your profits.
During a 36-month term, HCO Innovations delivered $4,901,454 of cost-savings related specifically to a Global Pork Processor’s forklift/material handling fleets. Through collaborative and immersive efforts, we quantifiably increased productivity, reduced maintenance expenses, and lowered acquisition and/or monthly lease costs while dramatically improving overall safety. This fleet is on track to be the most optimized and productive in the clients’ history.
Scope of Services Provided
Each service HCO Innovations provided the Global Pork Processor was specifically developed and tailored to each facility, paying careful attention to today’s needs and tomorrow’s demands. Each service was managed as a standalone category, directed by an HCO Innovations Core Leader for the client.
Scope
- All divisions, 40+ locations
- 2,000+ various powered equipment assets
- Interacted with 60+ personnel, including Plant Mangers, Controllers, Engineers, and Treasury
Field Engineering Assessments & Recommendations
- 38 facilities visited
- Handling efficiency / Types of Equipment Specifications to meet specific and unique handling requirements
Procurement programs & Lease structures
- HCO Innovations’ efforts were supported by 25+ supplier representatives for material handling equipment, services, and allied products
- Economic Justifications
- RFPs
Fleet Right-Sizing Maintenance Programs Cost Tracking & Reporting Telemetry Monitoring & Reporting Greenfield Planning Power Grid Implementation & Management (Energy Cost-Savings)
- Power studies for right solutions
- Zero battery change where feasible – cost / safety / productivity
- Fleet uptime through remote monitoring and maximized battery performance
Six-Pillar Strategy for Success
To achieve the cost-savings results of over $4.9 million, as well as safety and operational improvements within the Global Pork Processor’s operations, HCO Innovations developed and successfully implemented a strategic action plan centered on a Six-Pillar Strategy:
- Procurement / Leasing: Pricing negotiation strategies, reducing middleman costs, managing supply processes and documentation including economic/utilization analysis
- Utilization: PIT fleet rightsizing initiatives, including utilizing hour meter and cost data
- Maintenance: Standardizing maintenance agreement structures, developing RFP content
- Safety: Low and high tech solutions to avoid worker injuries and ensure OSHA compliance
- Reporting: Web-based access to assets to increase visibility and transparency, tailoring actionable reports and quarterly management meetings to discuss savings progress
- Energy & Power Management: Measuring and reporting energy and power consumption, designing and implementing high-efficiency solutions to reduce costs
Implemented Programs & Savings
Throughout the 36 months of the agreement, HCO Innovations implemented cost-savings programs and kaizen initiatives throughout many of the Global Pork Processor’s operations, yielding annual cost-savings
of over $1.6 million.
| Location | Annual Savings | One-Time Savings | Activity |
|---|---|---|---|
| 1 | $178,750 | Fleet replacement / battery and charger pricing program | |
| 2 | $78,000 | Fleet replacement | |
| 3 | $114,068 | Fleet replacement | |
| 4 | $65,000 | Quarterly replacement plan | |
| 5 | $458,000 | Complete fleet replacement (104 pieces to 89) / Power solution | |
| 6 | $228,000 | Usage program on pallet jacks / Opportunity charging | |
| 7 | $57,000 | Reduced equipment count / Power program | |
| 8 | $28,000 | Equipment replacement – Lease and maintenance | |
| 9 | $87,000 | Complete fleet replacement | |
| 10 | $12,000 | Equipment replacement (29 pieces to 20) | |
| 11 | $308,000 | Complete replacement (47 pieces to 32) / Zero battery charge | |
| 12 | $60,000 | One walkie stacker each location / Purchased / Ongoing additions | |
| 13 | TBD | Complete replacement (60 pieces to 47) / Power solution | |
| $1,613,818 | $60,000 | ||
| 3 | 1 | Minimum Term on all Projects is 3 years | |
| $4,841,454 | $60,000 | ||
| $4,901,454 | TOTAL SAVINGS FROM IMPLEMENTED PROGRAMS |
HCO Innovations – Core Leadership
Team Our Core Leadership Team is a multi-faceted, well-rounded, dynamic group of industry experts. Each leader has significant industry expertise, from Fortune 500 Manufacturing and Distribution organizations to Wall Street financial institutions. Each Core Leader directs a team of talented industry experts, including industrial engineers and data analysts.
The following table lists the Core Leadership Team from HCO Innovations for the Global Pork Processor in alphabetical order, including each leader’s expertise and years within the material handling industry.
| HCO Innovations Core Leader | Food Warehousing & Distribution | Material Handling Equipment | Financial Management | Operations Management | Industrial Power Management | Negotiations | Industry Tenure (YRS.) |
|---|---|---|---|---|---|---|---|
| Michael Bumarch | 30 | ||||||
| Neil McElroy | 16 | ||||||
| Matt Orn | 10 | ||||||
| Will Van Ness | 16 | ||||||
| Phil Watson | 30 |
Core Expertise and Area of Primary Responsibility
Secondary Area of Expertise