Justifying an AI Forklift Safety System is All in the Numbers
ISHN wrote a very blunt article about how safety professionals need to think like bean counters. Basically, it is a message to them stating that numbers are important and the way management speaks and listens. It discusses the importance that if you want to purchase safety equipment, then you need to show the cost justification to management. The question is, are safety professionals doing that now? If not, why not? As the latest technology offers advances in safety, let’s discuss how justifying an AI forklift safety system is all in the numbers.
Bucket #1 Cost of an Accident
An AI forklift safety system is designed to reduce or eliminate forklift accidents and incidents. This is done with a digital forklift inspection checklist to keep the forklift healthy, impact detection to measure the G-force, pedestrian detection to identify when a person comes within the safety distance from the forklift, and object detection which is different than people and again warns the driver if the object gets too close.
Work with your ‘number’s person’ to find out the cost of when a person is injured by a forklift. What are the Workers Comp costs for years 1 through 5. Next uncover what are the indirect costs meaning what do you need to spend now that this person isn’t working. Finally, what does this do to insurance costs for the company. Get this number as well or simply talk to an insurance agent if you can’t get the number.
Bucket #2 Cost of Damages
The cost of damages is a line item that you probably are already tracking. All you need to do is add up the bills for repairs to the facility and equipment. The cost of damages can be a significant expense to the facility and management knows this is a hard number, meaning that there are direct costs leaving the business each day in order to pay for damages caused by the forklift. These ae things that are necessary such as the overhead doors. If you can’t close the doors, you can’t secure the facility.
Bucket #3 Labor Turnover
The cost of recruiting, hiring, training, certification, and retraining does add up. Then when you finally have one that works for a while, they end of leaving your company. Now the process starts all over again paying out the same thing a second time or even more. Much of that are hard costs and you can get those as well.
Done
Now that you have all of these numbers added up and represents your buckets, what does that number total? Now place that alongside the cost of the latest technology, AI forklift safety system, and you’ll notice that your cost justification can be a mere couple of months to a few months. Now you have something to show management that they can sink their teeth into.
Now you know that justifying an AI Forklift Safety System is All in the Numbers. And you have them all. Contact us today to get started on purchasing the solution to your forklift incidents that cost your company lots of money.
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Contact us today at sales@siera.ai or call us at (512) 817 0702.