With over 20 years of experience in providing financial solutions for Materials Handling, we’ve asked Senior Account Manager Louise Hanlon to take us into the Materials Handling world and provide insights on the dynamics of this market and its outlook.
During the last two decades things must have changed significantly within the Materials Handling industry. What have been the biggest evolvements so far?
“Obviously the world has changed, and so has the Materials Handling industry. Evolving technologies have been and will be a driver for change. From safety equipment (seat bells) to telematics and automation today, Materials Handling is changing. The sector has an enormous growth potential and many opportunities to evolve due to increasing sustainability considerations and enormous demand on the logistics supply chain from the e-commerce side.”
The growing importance of sustainability
“Similar to other industries, sustainability is high on the Materials Handling agenda. Companies increasingly embrace Corporate Social Responsibilities (CSR) policies and change their buying policies accordingly. This is impacting Materials Handling Equipment manufacturers and suppliers, since they need to extend their product portfolio with, for example, electric vehicles and lithium batteries requiring heavy investments in innovation.”
“Also, from governments and regulatory authorities the pressure is on. Take for example the UK Government that earlier announced it will remove the entitlement to use red diesel for many sectors as of April 2022. This will require many industries to use fuel that’s taxed at the standard rate for white diesel, encouraging the Materials Handling sector to use alternative fuels to help reduce their environmental impact.”
Automation unlocks resilience
“Another global trend impacting the Materials Handling industry is automation. With the COVID-19 pandemic there is, now more than ever, an urgent need for efficiency, cost reduction and a steady workforce ensuring business continuity. Today’s crisis might therefore be perceived as an accelerator of automation within the Materials Handling industry as our new ‘distance economy’ requires new ways of working. Take for example order picking which traditionally requires many people working close to each other. Robotic order pickers on the other hand, protect processes and business continuity because they are not vulnerable to diseases.”
“But also from a more internal perspective things have changed. While in the past decisions were being made by the employee operating the equipment in conjunction with in some cases a Warehouse Manager, today many companies have their own Purchasing Department, with tender processes in place. Today it’s common practice that Legal and Compliance are involved when purchases are being made. That is much more evident now than it was years ago.”
Did the role of a financial solution provider change over the years?
Yes certainly. We have to continuously move with the times and keep abreast of the changes. It’s no longer just about giving the cheapest rates, service is key. We have over 200 people working in the UK that support our dealers from the beginning to the end of the process.
Our dedicated and knowledgeable workforce help us in making a difference for our partners and helping them grow their business. We walk in our customers’ shoes and speak their language. Our in-depth industry knowledge enables us to think beyond tomorrow and be a strategic partner for our customers.
