Fleet Renewal and Lithium Conversion for Electric Pallet Trucks

• [SITUATION]:
A major food retail chain operated a large internal fleet of customized electric pallet trucks essential for warehouse picking productivity.
However, the fleet had reached critical obsolescence: many units were fully depreciated, others in poor condition, and several were being dismantled to provide spare parts.
All trucks used lead-acid batteries, which required large charging rooms, spare batteries, and constant maintenance. The setup also posed environmental challenges and reduced operational flexibility.
After a first phase that focused on replacing 50% of old batteries to avoid operational collapse, a Phase 2 project was launched to define a long-term renewal strategy for the fleet.

• [TASK]:
As Logistics Project Manager, I was responsible for leading Phase 2, which involved:
➢ Evaluating new battery technologies (Lead-Acid vs. Lithium-Ion).
➢ Deciding between purchase or rental models for equipment replacement.
➢ Running a pilot project at one distribution center to validate performance and infrastructure adjustments.
➢ Coordinating with Procurement and key suppliers to collect data, negotiate terms, and close the final contract.
➢ Proposing layout changes to repurpose the old battery room and improve warehouse space utilization.

• [ACTION]:
To achieve these goals, I:
1. Led a cross-functional team involving Procurement, Engineering, and Operations to analyze Total Cost of Ownership (TCO) over 5 years for both acquisition and rental models.
2. Worked with suppliers to obtain technical and financial proposals, evaluating costs, maintenance requirements, charging systems, and sustainability factors.
3. Selected lithium battery technology for its operational and environmental advantages, including simplified maintenance, reduced charging time, and elimination of battery swaps.
4. Defined one of the Retail Chain's DC as the pilot site, coordinating a small CAPEX investment to upgrade charging infrastructure.
5. Designed a new layout plan, transforming the former battery room into a parking and charging area for lithium units, freeing over 300m² and enabling new pallet positions.
6. Oversaw the contracting process for equipment rental, ensuring alignment with long-term logistics strategy and operational goals.

• [RESULT]:
➢ The project successfully implemented the first lithium-powered pallet truck fleet in the retailer’s network within 180 days of contracting.
➢ The pilot demonstrated a reduction in maintenance costs, improved operational uptime, and better space utilization.
➢ The lithium rental model proved to be the most cost-effective solution, showing a lower 5-year TCO compared to lead-acid equipment, while also supporting the company’s sustainability agenda.
➢ The new layout created additional storage capacity (pallet positions), improving efficiency and potential revenue.