Collections Issues

For companies offering off-site destruction services, automated collection vehicles can offer two considerable advantages over straight trucks, namely increased collection efficiencies and a reduction in bin inventory. While automated collection vehicles generally cost more upfront, according to industry suppliers, a destruction firm could >quickly reap a return on its investment.
 

COLLECTION EFFICIENCIES

“Increased efficiency and reduced bin inventory help economies pencil out very well, while the operation is industry specific and far more secure,” says Brian Drew, sales manager for Shredfast Inc., Airway Heights, Wash. “Secure automated collection is an asset, where traditional truck bin swapping can be viewed as a liability in the eyes of the customer.”

Drew adds, “The advantage of secure automated collection equipment is recognized in load cycle times and a far higher density of payload within the cavity of the van body.” While Alpine Shredders, Kitchener, Ontario, has yet to venture into the collection truck market, Sales and Marketing Director Mike Oden also points to the security advantages these vehicles could provide, saying, “clearly the security of a pure collection truck is a better option than a straight truck, purely from a construction and physical integrity perspective.”

Joe Roberto, vice president of sales and marketing for Shred-Tech, Cambridge, Ontario, says automated collection trucks offer more productivity than straight trucks. “They enable the operator to collect a lot more paper in one trip than with a straight truck,” he says. “You can easily pick up twice as much paper and need considerably less container inventory.”

According to Doug Ferrante, regional manager for UltraShred LLC, Spokane, Wash., a straight truck needs 1.2 to 2 bins in inventory for each bin placed in the field, resulting in inventory costs that are at least 20 percent greater than what a collection truck would require.

With payloads of 15,000 pounds on average, collection truck capacity can be two to three times greater than that of a straight truck, according to sources. “To collect the same amount of material, a straight truck will need to make three trips out or you would need three different trucks,” Ferrante says. “In the latter case, labor costs, fuel and insurance would be significantly more expensive as well as the capital expense for three straight trucks.”

It is common, however, for destruction firms to start off with straight trucks, adding collection trucks as their businesses grow, Roberto says. “You do need a certain volume to justify a collection truck. Less than a few thousand pounds per day, and a straight truck will probably be fine,” he says.

While an automated collection truck can offer a number of efficiencies, destruction firms will want to spend time researching options to ensure they select the right model for their needs.
 

KEY FEATURES

When shopping for collection vehicles, destruction firms may want to keep a few key features in mind, such as the ability to handle bins of various sizes, should their routes require it.

“If you have customers that use large four-wheeled carts, you may need a double-wide tipper,” Roberto says. “Consider the type of tipper in relation to the container your customer is using.”

Shredfast’s Drew suggests researching cycle time, design and payload efficiencies as well as the vehicle’s manufacturer, as with any vehicle. He adds, “Is there intuitive technology built into the collection truck and are there application efficiencies that will benefit their operation?”

Ferrante of Ultrashred suggests destruction firms look for payload capacity and simplicity above all when shopping for a collection truck. “An overly complicated collection truck that breaks down frequently will never save you money over a straight truck,” he says. “The simpler the systems are on a collection truck, the better.”

While Oden also views simplicity as a benefit in collection trucks, he notes that the vehicle’s structural integrity also merits investigation. Some suppliers to the industry guarantee the structural integrity of their collection trucks, with Shredfast can offer a guarantee that the van body of its collection truck will maintain structural integrity during a rollover incident, Drew says. Despite the advantages that automated collection vehicles can offer document destruction firms, there are times when a straight truck might be a better choice.
 

STRAIGHT UP

Straight trucks generally cost less than automated collection vehicles, which can be a primary consideration for a startup company. “There is generally a 50 percent price increase to purchase automated collection equipment,” Drew says. “It is pretty easy to see the additional price absorbed within 24 months,” he adds, “if all efficiencies are taken into place.”

However, Ferrante says, “The most expensive part of either truck is the chassis, and they will be close to the same amount for whatever the application. Costs are added to collection trucks when they start to get overly complicated.”

He adds, “A used straight truck can be dirt cheap, and there are very few used collection trucks available, so the difference in pricing can be huge.”

When it comes to maintaining or repairing automated collection trucks and straight trucks, replacement parts for straight trucks are generally easy to come by, because they are not industry-specific vehicles, Drew says.

Straight trucks also can offer more versatility than automated collection trucks. For instance, they can be useful in purge situations involving palletized loads, Drew says. “Straight trucks and transporters are the best option to move palletized loads and prove quicker in certain purge situations,” he says. “But even at a purge with bankers’ boxes, it is far quicker to go automated, dump into bins and tip, if the boxes are not palletized.”

And because materials are contained in separate bins or containers within straight trucks, they can be used to collect paper as well as hard drives or other forms of electronic media destined for destruction, Roberto notes.

Straight trucks also may be more practical in situations involving tight loading docks and cramped inner city areas, Oden says. “Most collection vehicles are full-sized 33,000 GVWR (gross vehicle weight rated) trucks.”
 

MAINTENANCE MATTERS

Because collection trucks feature more moving parts than straight vehicles, they generally require more in the way of preventive maintenance, which can include lubrication of the vehicles’ PTO (power take-off) shaft for vehicles with a PTO-driven system and maintenance of the vehicles’ tipper/lifter and unloading systems.

“Generally, additional maintenance is limited to lubrication, cleaning and inspection,” Drew says of automated collection vehicles. In terms of daily maintenance, “Beyond maintenance of a straight truck liftgate, an additional 15 minutes could be anticipated,” he adds.

Ferrante says system simplicity is a factor in preventive maintenance for automated collection trucks. “Some collection trucks have complicated sorting systems, which have given customers problems in the past. A truck with a simple lift and proven unloading system, like a walking floor or a dump body, are going to be far more cost-effective and require less maintenance to operate over their lives,” he says.

Shred-Tech’s Roberto says, “Generally speaking, if you have enough volume to take advantage of a collection truck, the cost benefits outweigh the added costs of in purchase price and maintenance.” 

The author is editor of SDB magazine and can be contacted via e-mail at dtoto@gie.net.