When production stops, so does revenue. Unexpected downtime is a serious threat to the success of every warehouse and distribution center. Understanding what poses the greatest risks of causing downtime, and how to mitigate those risks, can be a difference measured in hundreds of thousands of dollars each year. Learn how preventing downtime is the best way to keep operations running smoothly.
Causes of Downtime
Unexpected downtime has a wide variety of causes. The most common causes include:
- Aging Equipment
- Human Error
- Reactive Repair (vs. Proactive Maintenance)
Having a plan of action to mitigate these causes before they begin to affect the bottom line doesn’t just make sense, it makes dollars.
In manufacturing (automotive, pulp/paper, etc.) downtime costs can be up to $20,000 to $22,000 per hour. For a 750,000 sq. foot warehouse or distribution center operating 5,500 hours per year, downtime costs average around $10,000 per hour. With that in mind, preventing downtime can drastically impact your annual revenue.
Preventing Downtime for Warehouses and Distribution Centers
Many facilities have a “make it work” mentality when it comes to outdated equipment. The upfront costs or training required might make them hesitant to upgrade. But when each person on their production floor is wasting time each day with hardware outages, slow processing, or spending time rebooting equipment, the downtime costs will quickly outpace any upfront fees. Finding the right tailored solution to your needs will pay dividends by increasing output and preventing downtime.
In manufacturing and distribution, human error accounts for an average of 18% – 23% of downtime. This is not just someone doing something incorrectly but includes ignoring necessary maintenance until it reaches a catastrophic level.
Reactive maintenance vs. preventative maintenance is one of the best ways to prevent long unexpected downtime. Companies often fall into the reactive maintenance mentality because they do not have anyone on site who can repair their hardware and think finding a technician is a major hurdle. Well, having the right partner who offers true support for their facility can keep their equipment working, and their people producing.
Turn Your Facility into a Production Powerhouse Today
Finding the right solution for your operations and partnering with a company that offers unmatched support is a forwarding thinking approach to put you a step ahead of the competition. We are here to provide both of those revolutionizing services to your business. Reach out to us via our contact page or call us at 1-800-853-7226
More Info: https://www.atlassian.com/incident-management/kpis/cost-of-downtime; https://www.sensrtrx.com/cause-downtime-manufacturing/ ;
https://www.midcoforklift.com/blog/downtime-cost-calculation