Did you know that within the glass industry, there are over 3 million racks circulating, yet a significant portion remains untracked, treated merely as an operational expense? Surprisingly, these essential assets spend a staggering 80% of their time outside the facility. With between 10% to 20% of these racks lost annually, the financial implications are substantial, with potential losses ranging from $35,000 to $75,000 for a plant utilizing 3,000 racks.
But the consequences extend beyond mere monetary losses. Lost racks directly impact shipping operations, which constitute 25% of a float plant’s total freight expenditure. Through conversations with over 50 plant managers, common scenarios emerged, shedding light on the real-world consequences of untracked racks:
- Inadequate Rack Size: Insufficient racks for a shipment can lead to delays and disruptions in fulfilling customer orders.
- Mismatched Racks for Production Runs: Without the right rack available, production processes can grind to a halt, causing costly downtime.
- Expensive Backhauls: The need to resort to expensive backhaul options due to misplaced or unavailable racks adds unnecessary financial strain.
In light of these challenges, the question arises: Can tracking racks facilitate quicker retrieval and reduce backhaul costs? The answer, according to industry insights and emerging trends, is a resounding yes.
Author – Kacey Weaver
