So even equipment as benign as a pick module can have complexities similar to that of a system purchase. This is especially true if computer directed picking technology (RF, light and/or voice) is included.
Key Factors Buyers should Consider when Purchasing a System
In the typical material handling system purchase, the Buyer becomes the “De Facto” General Contractor. Material Handling System vendors are not likely to take responsibility for building design/modification or other requirements that fall outside of their expertise. More importantly, very few system vendors (if any) are willing to assume operational responsibility for equipment and systems designed and installed by others. Nor will they take performance responsibility for the system they provided but do not manage. They will of course, train the operators and guarantee the operation and functionality of the equipment, controls and software in accordance with the sales agreement.
Note: Buyer Beware: Because the system is operated and managed by the Buyer’s employees, over whom the system provider has no contractual authority, the provider cannot guarantee system performance, staffing levels, or ROI. While most system vendors will provide an estimate of minimum staffing levels, they do not take responsibility for this estimate. This issue becomes even more problematic when union labor is involved. Interestingly, the more automated the system becomes the more system performance responsibility the vendor can assume. For example, in a fully automated “lights out” DC operation, the provider would be expected to assume 100% system performance responsibility.
When faced with a system purchase, especially for the first time, companies interested in a do-it-yourself approach are well advised to bring onboard an industry expert, or hire an independent consultant, or choose a highly trusted systems integrator - who has been down this path many times before and can ask the appropriate questions and provide expert advice – see “Are You Ready To Hire A Materials Handling Consultant?”
When making a systems purchase, companies are almost certainly entering a relationship of some considerable duration with the provider. Ideally, whoever you choose to work with, they will offer an objective, analytical analysis with a broad spectrum of solutions. If the purchase is based on compliance to a firm price bid specification, beware of change orders submitted by the vendor for items and services not included in the bid specs. Buyers should insist on having a formal change order review and approval process including a detailed cost and schedule impact analysis.
Buyers should also be aware that some system vendors may subcontract the controls engineering and software programming to a third-party provider. This raises the risk of miscommunication, errors, and may lead to limited site support. Controls and software are definitely not commodities. Companies should make sure they understand how and by whom this critical portion of the project will be developed, tested, and installed prior to signing the sales agreement. And don’t just ask whether the software can meet the requirements; ask how the requirements will be met, and who will maintain and provide emergency backup service.
Note: All too often a third-party's lack of involvement in the planning stage can cause confusion during delivery and commissioning relative to expected functionality. |