The Challenge

A high-throughput distribution center near Maribor, Slovenia handles around 480 pallet movements per day across three shifts. All pallet transfers from receiving to pick faces and loading docks were done with manual pallet jacks. As volumes grew, operators covered longer distances pushing heavy loads, causing fatigue and slowing down picking during peak hours.

The site ran 3 shifts, relying on six manual jacks shared between teams. Average transfer time per pallet had crept up to 2 minutes, and supervisors regularly had to allocate extra staff just to keep up with outbound truck schedules. Strain-related complaints and short sick leaves were also increasing, adding indirect costs and planning issues.

Manual Process

Before Automation:

• Daily volume: 480 pallets/day
• Cycle time per pallet (walk, maneuver, push manually): 2 minutes
• Total daily time: 480 × 2 = 960 minutes (16.0 hours/day)
• Labor cost: 16.0 hours/day × €25/hour = €400/day
• Rework/issues: ~3 minor strain-related absences/month and occasional late truck departures

With manual jacks, one full-time equivalent (FTE) per day was effectively dedicated to pallet transfers across the three shifts. During peaks, supervisors had to pull pickers off other tasks to help move pallets, reducing picking productivity. Manual pushing of heavy pallets up truck tail lifts and slightly inclined ramps increased operator strain and safety risks.

Automated Solution

To address these issues, the facility implemented the SMITH Electric Pallet Jack XT2 with lithium-ion battery, replacing three of the six manual jacks in the busiest zones. The XT2’s compact chassis matched the maneuverability of manual jacks but added powered travel and lift, ideal for narrow aisles and tail lifts.

After Installing SMITH Electric Pallet Jack XT2:

• Machine operates at 60% of maximum capacity for reliability
• New cycle time: 0.8 minutes per pallet (powered travel and assisted maneuvering)
• Total daily time: 480 × 0.8 = 384 minutes (6.4 hours/day, rounded to 6.7h with breaks/transitions)
• Labor cost: 6.7 hours/day × €25/hour ≈ €167/day
• Quality improvement: no late trucks in the first quarter and a noticeable drop in strain-related complaints

Operators now use the XT2 for all medium and long-distance transfers and work on slight ramps without excessive effort, supported by the truck’s gradeability and brakes. The long runtime and quick charging of the lithium battery allowed continuous use across three shifts with simple opportunity charging, removing the need to add extra headcount.

ROI Calculation

Investment:
Machine price: €1,039
Daily manual labor cost: €400/day
Daily labor cost with XT2: €167/day
Daily savings: €400 − €167 = €233/day
For a conservative calculation (allowing for occasional under-utilisation and non-labor factors), the facility booked:
Recorded daily savings: ≈ €225/day
Monthly savings (22 working days): €225 × 22 = €4,950/month
Payback period: €1,039 ÷ €225 ≈ 4.6 months (under 5 months)

Conclusion

By replacing part of its manual pallet jack fleet with the SMITH Electric Pallet Jack XT2, the Slovenian distribution center cut pallet handling time by about 55% and reduced daily labor from 16.0 to 6.7 hours. The project removed the equivalent of one full-time position from pure pallet transfer work while improving schedule reliability and reducing operator strain.

“With the SMITH XT2 we went from 16 hours of pallet handling a day down to just under 7, saving around €225 per day and getting our money back in less than five months. We’ve also seen fewer strain complaints and no late trucks in the last quarter.” — Andrej Kovad, Operations Manager, Maribor Distribution Center (Slovenia)