MAKING TE CASE FOR NEXT-GENERATION FORKLIFT POWER … · 6 • TOYOTA: Next-Generation Forklift...

NEXT-GENERATION FORKLIFT POWER SOURCES

MAKING THE CASE FOR

CONTENT CREATIONPEERLESS

When warehouses and DCs make the shift to lithium-ion batteries over traditional lead-acid batteries, they experience lower

maintenance costs, longer run times, increased performance, faster and more efficient charging, and less downtime.

2 • TOYOTA: Next-Generation Forklift Power Sources • toyotaforklift.com

WITH ONLY SO MANY HOURS IN THE DAY TO WORK WITH, warehouse

and fleet managers are always looking for ways to do more with less,

cut costs, and gain a competitive advantage. Right now, many of them are

finding those answers—and more—in lithium-ion battery-powered forklifts.

Lead-acid batteries are the current industry standard for electric forklifts

and are regenerated with an 8-hour charge time, plus an additional 8-hour

cooldown time before they can be cycled back into the forklift for use.

The case for LIBs gains strength because of their far superior charging

capabilities, which is much faster and occurs during a 1-hour or 2-hour

continuous session.

“The lithium-ion battery has emerged as the most serious contender for

dethroning the lead-acid battery,” chemical engineer Robert Rapier writes in

Forbes. “Lithium-ion batteries are on the other end of the energy density scale

from lead-acid batteries. They have the highest energy to volume and energy

to weight ratio of the major types of secondary battery.”

Declining LIB costs and the fact that more companies are using them are

also driving the trend to replace lead-acid batteries. In the end, the economics

typically come down to just how much the batteries themselves are used,

which impacts downtime, maintenance, and labor costs.

Charging Efficiency is the Next Step toward Competitive

Advantage in DCs and Warehouses

MAKING THE CASENEXT-GENERATION FORKLIFT POWER SOURCES

TOYOTA: Next-Generation Forklift Power Sources • toyotaforklift.com • 3

issues for forklift users.

Going a step further, LIBs

are decidedly “green”—an

important distinction in a world

where everyone from the

CEO to the end consumer is

concerned about organizational

impact on the environment.

The charging efficiency, which

reduces the power lost during

the charging process, in turn

reduces the carbon footprint

created in electricity generation.

Along with promoting

sustainability, forklifts that run

on LIBs (versus fossil fuels) are

also compliant with regulations

like the California Air Resources

Board (CARB) regulations.

In this Making the Caase, we

explore the growing adoption

of lithium-ion batteries in the

warehouse and DC, highlight

the benefits of replacing

lead-acid batteries and/or

combustible engines, and prove

that LIBs are no longer in the

“early adopter” phase.

productivity out of their forklifts,

but they also save on energy bills.

That’s because LIBs are more

energy-efficient and charge faster

than lead-acid batteries. They

also last longer than their lead-

acid cousins, and that translates

into lower total cost of ownership

over time.

For some operations, especially

food processing, third-party

logistics (3PL), and other multi-

shift applications, LIBs provide

that extra edge by reducing labor

costs and improving productivity.

“That’s where opportunity charging

really comes into play. The first shift

comes in and runs for three hours

and takes a half-hour break, during

which time the forklift battery

charges back up,” says Ries.

“They can repeat that at lunch

and throughout the day,” Ries

continues, “instead of having

to wait 16 hours to be able to

use their trucks again.” This not

only helps improve operational

productivity, but it also diminishes

forklift downtime. In a business

environment where fluid,

efficient fleet management is

absolutely critical, battery life and

maintenance have become central

In making the case for using

LIBs in forklifts, Bill Ries, Account

Manager for a Toyota authorized

dealer on the West Coast, Toyota

Material Handling Northern

California, says the decision

is generally based on the

productivity gains. “The biggest

conveniences are that LIBs are

maintenance-free,” says Ries.

“And, similar to a cell phone

battery, they can be replenished

using ‘opportunity charging.’”

In other words, LIBs don’t rely on

the 16-hour charging cycles that

lead-acid batteries require. With

opportunity charging, LIBs can last

through multiple shifts without ever

needing to swap the battery. “That

can be particularly useful for the

warehouse or DC that’s managing

two or more daily shifts,” Ries says.

For example, Toyota Material

Handling has several customers

that run shifts around the clock

and seven days a week, leaving

little or no time for extensive

charging sessions.

And while the average price for

an LIB forklift battery is roughly 3x

to 4x the cost of a lead-acid battery,

in return for that investment, fleet

managers can not only extract more

— Bill Ries, Account Manager, Toyota Material Handling Northern California


“The biggest conveniences are that LIBs are maintenance-free,” says Ries...

And, similar to a cell phone battery, they can be replenished using ‘opportunity charging.’”

LIBs are more energy-efficient and

charge faster than lead-acid batteries.

They also last longer than their lead-acid

cousins, and that translates into

lower total cost of ownership over time.


THE EVOLUTION OF E-COMMERCE AND DIGITAL BUSINESS

is setting a fast operational pace for companies across most industries,

disrupting traditional practices in product and materials management. To keep

up, modern warehouses and DCs need fluid, efficient fleet management tools

that can work around the clock (when necessary). Concerned with battery

life, maintenance requirements, and employee satisfaction, more warehouse

managers are considering lithium-ion batteries (LIBs) to run their forklifts.

“LIBs are much more efficient than lead acid batteries,” says Martin

Brenneman, senior product planning specialist at Toyota Material Handling.

“This allows them to charge faster and more frequently than traditional lead-

acid batteries without experiencing deterioration.”

SUPPORTING HIGH-OUTPUT OPERATIONS

When Toyota Materials Handling introduced its new lineup of LIBs approved

for use in its 3- and 4-wheel electric sit-down forklift models, it became the

first manufacturer in the industry to obtain UL-E and UL-EE certification for the

combination of truck and LIBs on a sit-down counterbalanced forklift.

Introducing Next-Gen Forklift Power Solutions



GOING GREEN

In 2006, the California Air Resources

Board (CARB) adopted new

regulations to reduce emissions

from large spark-ignited (LSI) engine

powered equipment including

forklifts, sweeper/scrubbers,

and industrial tow tractors. The

regulations set fleet average emission

level requirements (FAELs) that

decreased each year to encourage

the use of electric vehicles and low-

emissions engines. Any company

using three or more forklifts receives

an emissions score based on their

equipment’s age and other factors.

Smart operations are also taking into

account that these regulations could

become more stringent over time.

Working with Underwriters

Laboratory (UL), Toyota’s engineers

tested and certified the use of

four new lithium-ion batteries in

the company’s forklifts. Focused

on offering customers versatile

solutions that are both reliable and

compatible, Toyota’s LIB offering is

part of its commitment to offering

a wide variety of alternative energy

solutions for its customers through

Toyota Industrial Energy Solutions.

During opportunity charging

sessions, for example, LIBs can

utilize a “fast charge” approach that

applies a very high current to the

process.

“In high-output operations,

where you would traditionally see

multiple batteries being used per

truck, LIB provides a fast charge

and requires just one battery per

truck,” Brenneman points out. This

creates some clear advantages for

the warehouse operator, whose

employees don’t have to worry

about “changing out” batteries.

They also don’t have to maintain

battery acid levels or allocate

physical space for battery storage.

“There are some clear labor

costs to putting someone in charge

of swapping batteries, and to

having drivers waiting in line to get

their trucks’ batteries charged,”

Brenneman explains. “With LIBs,

the same drivers can pull up to a

charger, plug in their trucks, go to

lunch, and come back and resume

working. It’s a much more efficient

use of labor.”

Electric forklifts receive zero points,

making them the most CARB-

friendly option on the market. And

while California leads the charge

on environmentally-conscious

regulations, other states—as well

as corporations and consumers—

are also focused on reducing

negative environmental impacts of

combustible engines and their

related emissions.

Adding LIB to the electric

solution can help operations

retain the convenience of internal

combustion when lowering their

overall CARB score.

“The higher the score, the

higher the pollution levels,” says

Brenneman, who adds that

equipment size, age, and other

characteristics can impact the

forklift’s rating. If a company’s

average rating must fall below a

certain threshold, one way to

bring it down is by replacing older

forklifts with newer, electric-

powered options.

By taking that step, warehouse and

DC operators can also leverage the

many other benefits of using next-

generation forklift power sources.

Not only do electric vehicles perform

better overall, but they also require

less maintenance than internal

combustion forklifts (mainly because

they have far fewer “moving parts”).

“In general, electric trucks are less

expensive to operate,” Brenneman

points out. “And while the upfront costs

may be higher with electric, their total

cost of ownership is much lower.”


— Martin Brenneman, senior product planning specialist,

Toyota Material Handling

“There are some clear labor costs to putting someone in charge of swapping

batteries, and to having drivers waiting in line

to get their trucks’ batteries charged...

With LIBs, the same drivers can pull up to

a charger, plug in their trucks, go to lunch,

and come back and resume working. It’s a much more

efficient use of labor.”



The name of the game in the cold storage material handling industry is to get as many products as possible into as tight a space as possible while eliminating as many touches as possi-

ble. (That second part is generally true for any warehouse).

But part of maintaining an effective cold storage operation for food products is also maintaining the efficiency in the material

handling equipment we use in those applications.

Extending run-time, ensuring effective aisle design for lifts, and maintaining fewer entries and exits must all be accounted for

when managing cold storage material handling.

One innovation is carrying cutting-edge operations to new heights in cold storage: lithium-ion forklift batteries. These

batteries are being used by early-adopters to replace lead-acid batteries when working in fridges above 32 degrees. They are

helping to overcome serious material handling challenges.

Lithium-ion forklift batteries are also nearly maintenance free. While lead-acid batteries require water maintenance, a lithi-

um-ion battery can run virtually untouched except for charging needs. This is a huge boon for return on investment (ROI),

efficiency, and productivity.

The Lithium-Ion Forklift Battery-Cold Storage Connection


FOR THE CFO: The initial cost of LIBs might be higher, but that investment can more than pay

for itself over time, especially in the right multi-shift applications. Much of that savings comes in

the form of lower maintenance costs, but the fact that LIBs support environmental sustainability

through efficient use of electricity, can be easily charged and back in action quickly, and enhance

productivity on the warehouse floor all add up to significant cost savings.

“Trucks using LIBs have much less downtime than those that need 16-hour battery charging

cycles and battery swaps,” says Toyota Material Handling Northern California Account Manager Bill

Ries. “That equates to less money spent on operators or maintenance staff.” It also means more

productivity in the warehouse, where the speed of business today leaves little room for downtime.

And because LIBs last two to four times longer than lead-acid batteries, CFOs can rest easy

knowing that equipment replacement cycles will be far fewer. As an added bonus, some electricity

suppliers in states like California are offering rebates to companies that “go green” by investing in

battery-powered forklifts.

Next-Generation Forklift

Power Sources

MAKING THE CASE FOR


When warehouses and DCs invest in lithium-ion-powered

forklifts, everyone wins.


FOR THE OPERATIONS MANAGER:

Focused on keeping their operations running across all shifts,

operations managers need reliable, dependable forklift fleets.

Martin Brenneman, senior product planning specialist at

Toyota Material Handling, says next-generation LIB-powered

forklifts have come a long way since the days when swapping

out a propane tank on an internal combustion engine truck

was easier than charging a battery.

A warehouse that’s running multiple shifts, for example,

no longer has to worry about swapping out lead-acid

batteries and then waiting 16 hours until the “swapped”

batteries are recharged and ready to use. This frees up

floor space that was allocated to the battery-charging

operation, which typically includes extraction machinery

and storage space. These are very bulky, heavy batteries

that take time to swap out, says Ries, not to mention the

room to do it in.

“The idea that an electric truck is more work due to the

battery swaps and charging sessions is no longer valid,”

Brenneman points out. “With today’s fast-charge options,

LIBs can stay up and running 24/7.” That’s good news

for the operations manager who doesn’t want workers

having to swap out 2,200-pound lead-acid batteries and/

or lift full propane tanks onto their vehicles. “Instead,” he

adds, “they just plug the battery connector into a charger.”

FOR THE FLEET MANAGER: With

the “early adopter” phase for LIBs

already behind them, fleet managers

who weigh out the pros and cons of

using these next-generation battery

sources can readily see the benefits

of making the move to LIBs. “The

technology has been proven and

is being used in some large-scale

operations,” Brenneman explains.

“The bugs have been worked out,

and now we’re getting into that

stage where LIBs are being used

more universally.”

In return, the fleet managers in

those operations are experiencing

higher levels of productivity, less

need for maintenance, and fulfillment

operations that can literally run

around the clock. “If you’re running a

multi-shift operation and concerned

about throughput, operator

efficiency, and overall productivity

gains,” says Ries, “then LIBs could

be the answer.”


— Bill Ries, Account Manager, Toyota Material Handling Northern California

— Martin Brenneman, senior product planning specialist, Toyota Material Handling

“Trucks using LIBs have much less downtime than those that need 16-hour battery charging cycles and battery swaps...

That equates to less money spent on operators or maintenance staff.”

“The idea that an electric truck is more work due to the battery swaps and charging sessions is no longer valid,” Brenneman points out. With

today’s fast-charge options, LIBs can stay up and running 24/7.”


LESS MAINTENANCE, LOWER COSTS, ENVIRONMENTAL SUSTAINABILITY, and overall

worker satisfaction are just a few of the key benefits of using next-generation lithium-ion batteries in

forklifts. The fact that “opportunity” charging these vehicles is easy means these batteries offer a broad

range of benefits for many warehouses and DCs.

High-throughput operations tend to see the biggest bang for their buck when using LIBs, but the

benefits are broader than just ROI. “As the technology behind the batteries has advanced, we’re

seeing a broader range of companies using them,” says Martin Brenneman, senior product planning

specialist at Toyota Material Handling.

Seeking less equipment maintenance and better charging flexibility, one food bank network

working with Toyota Material Handling Northern California moved over to using LIB-powered electric

pallet jacks a few years ago. Those jacks are transported by and used on tractor trailers that pick

up and deliver the food for the organization. “The truck drivers can charge the batteries whenever

they want, versus having to endure a rigid charging cycle,” says Toyota Material Handling Northern

California Account Manager Bill Ries. “They also don’t have to worry about truck maintenance while

they’re out on the road.”

Wanted: Lower Maintenance Costs, Easier Charging, and Better Productivity




ENERGY BILLS: Lithium-ion batteries are more energy-efficient and charge much faster than lead-acid batteries.

LONGEVITY: Your lithium-ion battery will last two to four times longer than a lead acid battery.

DOWNTIME: Lithium-ion batteries don’t need to be swapped out and can be opportunity-charged during operator breaks.

LABOR COSTS: Lithium-ion forklift batteries don’t require maintenance or watering.

PRODUCTIVITY: Enjoy longer run-times and no decline in performance as the battery discharges.

ENVIRONMENTAL IMPACT: Lithium-ion batteries avoid fume emission and their longevity could mean less battery disposal in the future.

REAL ESTATE: Reclaim the area you’re using as a charging room for additional storage.

7 Reasons to Use Lithium-Ion Forklift Batteries

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5

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For the higher upfront price that companies pay for their lithium-ion forklift batteries, those users save money on:


using electric forklifts,” he explains, “the days

when your maintenance personnel had to

change engine oil, swap out air filters, and flush

engine coolant literally just go away.”

TESTING AND QUALIFICATION

Looking specifically at Toyota’s LIB-powered

forklift approach, Brenneman says the

differentiations also lie in Toyota Industrial

Energy Solutions’ in-depth battery testing and

qualification.

“We put quite a bit of time and energy into

developing viable solutions,” says Brenneman,

who is often asked to provide direct

comparisons between electric forklifts and

those that have internal combustion engines.

Toyota Material Handling Northern California

Account Manager Bill Ries concurs, and says a

good starting point is to talk to both the forklift

manufacturer and the battery vendor about the

available options. “Here at Toyota, we use a

team approach that includes

representatives from the

battery manufacturer,” says

Ries. “When it comes to LIBs,

there are a lot of options out

there on the market right

now, and we strive to match

the right solution to the right

warehouse or DC, every time.”

MAKING A DIFFERENCE

A common misconception about forklift LIBs is

that they are just another battery and can be

directly swapped in place of a lead-acid battery.

The truth is that an LIB is an intelligent piece

of technology being used to replace a basic

chemical reaction connected by cables. This

means an LIB has to have a “brain.”

The “brain” continually monitors the battery

cells and their temperatures, detects when

there is a short or fault in a battery, and then

shuts down to protect itself if needed. “These

are new capabilities that we didn’t see on the

earlier generations of lead-acid batteries,”

says Brenneman. These and other functions

help keep LIBs relatively low maintenance

compared to lead-acid batteries. LIBs have built

in technologies to guard against maintenance

needs, while lead-acid batteries still require a

great deal more manual attention to maintain,

including constantly monitoring and adjusting

fluid and water levels.

“Lead acid batteries require

quite a bit of maintenance,

while LIBs have virtually

none,” Brenneman says. This

is especially significant for

companies that are investing

in their first battery-powered

forklifts. “When you move to


The truth is that an LIB is an intelligent piece of technology being

used to replace a basic chemical reaction

connected by cables. This means an LIB

has to have a “brain.”

TO FIND OUT MORE ABOUT WHAT TOYOTA CAN DO,

VISIT WWW.TOYOTAFORKLIFT.COM

CUSTOMER SUPPORT: 1-800-381-5879

MAKING TE CASE FOR NEXT-GENERATION FORKLIFT POWER … · 6 • TOYOTA: Next-Generation Forklift...

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