COST JUSTIFICATION FOR NEW 3-TON

COUNTERBALANCE & 2 X 2-TON POWER TRUCKS

© Recycling Technologies 2020 - CONFIDENTIAL
© Recycling Technologies 2020 - CONFIDENTIAL

MATERIALS AND LOGISTICS TEAM

 WHY IS THE COST UNAVOIDABLE? 
Current specifications from manufacturing have indicated that current
delivery weight of the part numbers will be up to 2.65 tons our current
Counterbalance can only lift 1.5 tonnes. We are not able to use the reach
truck for unloading as it is only 1.6t ton lift capacity. We are expecting the
below delivers that will require 3 ton counterbalance.
24/09/2020 Delivery (need to confirm with Purchasing)
BP-113-0003 – RGN Blower B201
Weight: 2.65 Tonne
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Dim: H=2049 D=1642 W=1796

BP-113-0001 – LHG Blower B5A01
Weight: 2 Tonne
Dim: H= 2349 D=1420 W= 1670
 POWER PALETTE TRUCKS

● 2 Ton Power Trucks will be required to

move heaver loads around the parts
highway. The ability of the units to move
quicker, safer and with powered
steering around tight corners will benefit
both operators’ efficiency and reduce
health and safety risks with moving
heavy loads
© Recycling Technologies 2020 - CONFIDENTIAL
 QUOTES
Below quotes for counter balances and Power Pallet trucks.
1. Based on 500 hour usage a year or 9.6 hours a week for the 3 ton counter
balance & the 2 power pallet trucks. All can increase usage hours at additional
cost if required in the future.
2. A 1 year hire is not industry standard and we will be given something
approximately to our spec as they will take out of old stock.
3.  The Jungheinrich Quote is based on a 5 year contract with a  1 year break
clause which is why it seems cheaper but the break clause will be dependent on
usage so if we are well under 500 hours for the year we will be ok but if we are
© Recycling Technologies 2020 - CONFIDENTIAL

close to usage we will not be able to enact it. Contract review would be needed
4. Linde have separate service package cost.  Jungheinrich and Toyota service
package is built to the price.
 QUOTES

1. Cancellation fees: 20% of Outstanding rental agreement

2. Gas Vs Electric cost breakdown as below
© Recycling Technologies 2020 - CONFIDENTIAL
 QUOTES

1 Year 1. We can change equipment to different trucks

-Electric 1 Year - Gas which are more suitable for your business,
1 Year Hire Power Counter Counter Electric Yearly
Vendor Pallet Truck Balance Balance Cost Mix Yearly Cost penalty free. This is written into our contracts as
standard.
Jungheinrich £ 1,940.64 £ 6,605.04 £ 4,278.56 £ 8,545.68 £ 6,219.20

Toyota £ 3,536.00 £ 8,892.00 £ 8,684.00 £ 12,428.00 £ 12,220.00

Linde £ 4,040.40 £ 11,440.00 £ 8,122.40 £ 15,480.40 £ 12,162.80

3 Year
3 Year -Electric 3 Year - Gas
2.Toyota will give us a £1500 cash back to -Power Pallet Counter Counter Electric Mix Yearly
use as we require against rent or other Vendor Truck Balance Balance Promotion Yearly Cost Cost
£ £ £ £ £ £
products in their Catalogue i9f we take Jungheinrich 2,169.96 6,878.56 4,790.76 - 9,048.52 6,960.72
forklift and Power Trucks £ £ £ -£ £ £
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Toyota 2,314.00 7,254.00 4,511.00 449.99 9,118.01 6,375.01

£ £ £ £ £ £
Linde 1,826.24 7,598.76 6,178.12 - 9,425.00 8,004.36

5 Year
5 year -Electric 5 Year - Gas
Power Counter Counter Electric Mix Yearly
Vendor Pallet Truck Balance Balance Promotion Yearly Cost Cost Comment
£ £ £ £ £ £ Weighing Forks Additonal cost : 1 year hire is through a 5 year contract
Jungheinrich 1,820.00 6,283.16 4,101.24 - 8,103.16 5,921.24 with break clause after 1 year
£ £ £ -£ £ £
Toyota 1,833.00 5,538.00 4,199.00 300.00 7,071.00 5,732.00 Hydraulic weighing already imbedded in counterbalance ;
£ £ £ £ £ £
Linde 1,433.12 5,821.92 5,099.64 - 7,255.04 6,532.76 Weighing Forks Additional cost
 Time line

1. Toyota have an 8-week lead-time on build to deliver

though we have an interim agreement to supply
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immediately and they are holding product for us that

is close to our spec and can be delivered with in until
delivery.
 Recommendations
1. Vendor Recommendation: To move forward
with Toyota based on cost and offered
service level from them based on knowledge
of our current relationship with them.
2. Reasoning for 5 Year Contract: Best value
pricing breaks with the ability to upgrade to
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new technology. 7-year contract are

available at a lower cost, but experience
would suggest that life cycle of the
equipment starts to degrade quickly after 5
years as we move to higher hours in use a
week