Use Case – SMITH Electric Pallet Jack XT2

The Challenge

A busy distribution center near Maribor, Slovenia manages about 480 pallet moves each day over three shifts. All pallet transport from receiving to pick locations and loading docks was handled with manual pallet jacks. As order volumes increased, workers had to push heavy loads over longer distances, leading to fatigue and slower picking during busy periods.

The operation ran 3 shifts and depended on six manual jacks shared among the teams. The average time to move a pallet had risen to 2 minutes, and supervisors often needed to assign extra staff just to keep up with outbound truck schedules. Reports of strain and short-term sick leave were also on the rise, creating extra costs and planning challenges.

Manual Process

Before Automation:

• Daily throughput: 480 pallets per day
• Time per pallet (walking, maneuvering, manual pushing): 2 minutes
• Total time per day: 480 × 2 = 960 minutes (16.0 hours per day)
• Labor cost: 16.0 hours per day × €25 per hour = €400 per day
• Rework/issues: about 3 minor strain-related absences per month and some late truck departures

With manual jacks, one full-time equivalent (FTE) per day was essentially assigned to pallet transport across all three shifts. During busy times, supervisors had to move pickers from their regular duties to help with pallet movement, which reduced picking efficiency. Manually pushing heavy pallets up truck tail lifts and on slight ramps increased worker strain and safety concerns.

Automated Solution

To solve these problems, the facility introduced the SMITH Electric Pallet Jack XT2 with a lithium-ion battery, replacing three of the six manual jacks in the highest-traffic areas. The XT2’s compact frame offered the same maneuverability as manual jacks, but with powered movement and lifting, making it well-suited for tight aisles and tail lifts.

After Installing SMITH Electric Pallet Jack XT2:

• The machine is run at 60% of its maximum output to ensure reliability
• Updated cycle time: 0.8 minutes per pallet (powered travel and assisted handling)
• Total time per day: 480 × 0.8 = 384 minutes (6.4 hours per day, rounded to 6.7 hours with breaks and transitions)
• Labor cost: 6.7 hours per day × €25 per hour ≈ €167 per day
• Quality improvement: no late trucks in the first quarter and a clear reduction in strain-related complaints

Operators now use the XT2 for all medium- and long-distance pallet moves and can work on slight ramps without excessive effort, thanks to the truck’s gradeability and braking system. The lithium battery’s long run time and fast charging allow for continuous use over three shifts with simple opportunity charging, eliminating the need to add more staff.

ROI Calculation

Investment:
Machine cost: €1,039
Daily manual labor cost: €400 per day
Daily labor cost with XT2: €167 per day
Daily savings: €400 − €167 = €233 per day
For a conservative estimate (to account for occasional underuse and non-labor factors), the facility recorded:
Actual daily savings: ≈ €225 per day
Monthly savings (22 working days): €225 × 22 = €4,950 per month
Payback period: €1,039 ÷ €225 ≈ 4.6 months (less than 5 months)

Conclusion

When the distribution center replaced part of its manual pallet jack fleet with the SMITH Electric Pallet Jack XT2, they were able to decrease pallet handling time by approximately 55% and cut daily labor from 16.0 hours to 6.7 hours. This initiative eliminated the need for one full-time position dedicated solely to pallet transfers, while also enhancing schedule consistency and easing physical demands on operators.

“With the SMITH XT2, we reduced our daily pallet handling from 16 hours to just under 7, saving about €225 each day and recouping our investment in less than five months. We’ve also noticed fewer reports of strain and no late trucks in the past quarter.” — Andrej Kovač, Operations Manager, Maribor Distribution Center (Slovenia)