It is not unusual for warehouse managers finding themselves in the need to buy replacement equipment for their warehouse. Equipment can breakdown overtime
due to wear and tear and many become obsolete. The obvious action is to buy new equipment to replace the worn out or antiquated ones.
However, there are options. For example, you can buy used equipment to replace your worn out items
Before you jump for the new gear, consider the advantages and disadvantages of selecting used over new.
Advantages
The obvious benefit is cost. Used equipment simply costs less than their brand new counterparts. And it is this fact that affects all the other advantages of deciding to go for used over new. However, you should find out the difference in cost. On many occasions, the cost of the used items may not be that much lower than the new alternative and you would be better off purchasing the new. The point here is that you shouldn’t assume that since it is used it must be extremely less expensive. It may not be. But if the price differential is great, then the smart decision could be to purchase the used option.
Once you determine that the savings is worth the venture, then you have money available to deal with other pressing needs including hiring needed personnel or acquiring an additional forklift or two
Disadvantages
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Some of the obvious disadvantages to buying used equipment include their longevity and the extra money you may have to spend to make minor or major repairs so that the equipment will perform as needed.
Evaluate your needs. How long will you need the equipment? Will a few months to a year suffice or will you need it for several years? If you need the equipment for a long period of time, then it might be best to opt for the new over the old.
Another disadvantage you may want to consider is that the used equipment may not have the options you need. This could be the case because the used item may have been manufactured before a certain feature or option was introduced.
In the material handling business, new things like shelving and loading equipment may have more available options than the older counterpart and that means if you buy used, you may not get what you really need. However, if you don’t need those extras and the used equipment as is will suffice, then it could be more cost effective to go with the used rather than the new.
There’s another thing that could affect your decision. There are a plethora of things needed for the proper operation of a warehouse. So it may be possible that there is no used alternative available to replace the worn out one.
Finally, it is so much easier to buy new equipment than used. If you decide to buy used equipment, then you have to take more time to search for what you want, inspect it and perhaps compare various alternatives.
Keep in mind that you should physically inspect the used equipment before you buy so that you assure yourself that it is exactly what you need. Make certain that the accessories or extra components and parts that were available when the equipment was first offered are currently available. You may want to buy a number of the components, parts, and accessories to make certain that you have them on hand when they are needed before they disappear from the market.