Aftermarket Archives - Material Handling Wholesaler

Creating high-performance teams with engagement and results

Sun, 20 Jul 2025 05:00:49 +0000

When most forklift dealerships evaluate the success of their aftermarket departments and functions, they focus on the usual Key Performance Indicators or KPIs — fill rates, technician utilization, work in process, and parts revenue. But if you look closer, the true driver behind consistent performance isn’t just better tools or sharper pricing. It’s the team culture that holds it all together. With today’s challenges in our industry, such as labor shortages, rising costs, and increasing customer expectations, the most effective dealerships are doing more than tracking metrics. They’re creating teams that function with clarity, confidence, and accountability — not just compliance. In speaking with dealership leaders across the country, I have identified three traits that consistently set their high-performing teams apart, and how your dealership can implement them. Productive Disagreement is a Strength, not a Disruption Successful aftermarket departments don’t avoid conflict — they embrace it. Productive disagreement allows your parts, service, and sales teams to challenge assumptions, raise red flags, and debate better solutions before mistakes happen. For example, if a technician questions a parts substitution or a counter rep challenges a commonly overlooked repair item, those moments shouldn’t be shut down — they should be welcomed. Friction, when rooted in professional respect and common goals, leads to better outcomes. In the hustle of daily operations, it’s easy to prioritize speed over discussion. But taking time to pause and ask, “Is this really the best way to do it?” can uncover inefficiencies that have gone unnoticed for months or even years. Whether it’s a recurring delay in ordering key components or confusion around repair quote approvals, healthy disagreement can be the spark that leads to long-overdue process improvements. What You Can Do: Encourage your teams to bring up inefficiencies, even if it ruffles feathers. Create “What Went Wrong” sessions where the team openly discusses recent service issues or miscommunications. Train frontline leaders to ask: “Is there a better way to do this?” This approach doesn’t slow you down — it sharpens your edge. In a business where reputation is everything, the ability to catch and correct problems early can be the difference between gaining a loyal customer and losing one forever. Psychological Safety Builds a Smarter, More Agile Team When people are afraid to speak up, they stay quiet — even when they know something is off. That silence can cost you time, customers, and even safety. The highest-performing service and parts teams foster an environment where everyone feels safe to raise concerns, admit mistakes, or suggest new ideas. This doesn’t mean lowering standards or tolerating excuses. It means removing fear from the learning and improvement process. This is especially important in multi-generational teams. Younger technicians may hesitate to offer input when seasoned veterans are present. Conversely, experienced employees may be reluctant to ask questions about new systems or technologies. A culture that encourages openness across all levels of experience allows the entire department to grow together. How to Build It: Acknowledge when leadership makes mistakes — it sets the tone for the team to do the same. Celebrate team members who identify potential problems, not just those who solve them. Provide anonymous feedback channels and act on what you learn. Psychological safety also boosts adaptability. In today’s aftermarket world, teams need to pivot quickly — whether it’s adjusting to supply chain delays, implementing new scheduling software, or adapting to customer service policies that shift overnight. Teams that feel safe are more responsive, creative, and aligned. When your people believe their voice matters, they bring more than their labor — they bring their insight. Shared Ownership Drives Engagement and Results One of the most overlooked performance drivers is ensuring that your team feels their work matters to the bigger picture. When counter staff, field technicians, and support roles understand how their work contributes to customer satisfaction and dealership profitability — and when they have a stake in the outcome — accountability increases. So does retention. We’ve all seen what happens when employees feel like cogs in the machine: enthusiasm wanes, quality dips, and turnover climbs. However, when employees are treated as contributors to the bottom line, they are not just labor costs — their mindset shifts. They care more about the outcome and take more pride in their role. Some dealerships are implementing this through bonus structures tied to department performance, while others have clearly communicated KPIs that are visible to everyone. The goal isn’t to turn every employee into an executive — it’s to help every employee act like one. Ways to Create Ownership: Post service efficiency, quote conversion rates, and parts fill rate goals in common areas. Tie quarterly bonuses to department-wide targets like first-time fixed rate or parts margin improvement. Involve employees in planning inventory strategies, scheduling changes, or tool upgrades. A shop floor bulletin board or digital dashboard can go a long way in making dealership performance visible and relevant to everyone. Even a brief monthly meeting that recaps progress toward shared goals can help people feel more connected to the mission. When the whole team is rowing in the same direction, performance becomes a collective outcome, not just a manager’s responsibility. Culture Is the Competitive Advantage You Control Every dealership is facing similar headwinds: technician shortages, rising input costs, and customers who expect the same level of service as Amazon. But not every dealership is creating the kind of culture that turns those challenges into opportunities. It doesn’t take a massive overhaul. Often, it just takes a consistent effort to change the conversations happening in the breakroom, during team meetings, and at the parts counter. By encouraging disagreement, fostering safety, and building ownership, you’ll make more than just a high-functioning team — you’ll create a dealership where people want to stay, customers want to come back, and performance sustains itself. That’s the kind of competitive advantage you don’t have to wait for the market to deliver. It’s one you build from the inside out. About the Author: Chris Aiello is the Business Development

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Is your Dealership equipped for the Future of Customer Experience?

Fri, 20 Jun 2025 05:00:48 +0000

Back in March of this year, after attending and exhibiting at this year’s record-breaking ProMat Show in Chicago, one thing is clear: the future of material handling is arriving faster than many in our industry anticipated. The pace of innovation, particularly in automation, robotics, and artificial intelligence, has accelerated, and it’s reshaping expectations across the board, especially in the aftermarket segment for lift truck dealerships. More than 1,160 exhibitors showcased a diverse range of products, including autonomous mobile robots, predictive maintenance platforms, and traditional material handling solutions. There were also over 200 educational sessions that delved deeply into how these technologies are reshaping the supply chain landscape. The energy at the show was unmistakable, and automation is no longer just a buzzword; it’s a wave that’s already hitting the shores of warehouse and distribution operations. The tools on display weren’t just aspirational concepts; they were real, functional, and increasingly deployed in operations ranging from Fortune 500 distribution centers to mid-size regional warehouses. There certainly is an acceleration in the adoption of these technologies by end-users in manufacturing and supply chain operations. For those of us in the dealership world, particularly in parts and service, this acceleration is something we can’t afford to ignore. Automation Doesn’t Replace Lift Trucks—It Changes the Environment They Operate In Let’s be clear: forklifts and other industrial trucks aren’t going anywhere. They remain the backbone of warehouse operations. What’s changing is the ecosystem around them. When autonomous mobile robots (AMRs) are moving pallets across zones and AI-driven WMS platforms are directing workflows in real-time, the role of lift trucks—and the expectations for their uptime—become even more mission-critical. That means the pressure on dealers to support uptime, supply the right parts, and deliver expert service is only increasing. Your customers who invest in automation aren’t looking to slow down. They need every component of their operation, including forklifts, to work flawlessly and integrate smoothly with the rest of their tech-enabled infrastructure. Downtime isn’t just inconvenient; it disrupts a carefully calibrated, digitally orchestrated supply chain. What This Means for the Aftermarket Side of the Business Here’s the part that matters most for aftermarket leaders: we are entering a new service era where speed, visibility, and specialization are becoming non-negotiable. Faster Fulfillment Is No Longer a Bonus—It’s a Baseline End-users now expect the same speed they’ve built into their automated warehouse systems to be reflected in the support they get from their dealership. This means the pressure is on your parts department to streamline inventory management and logistics. Stock outs will lose customers. Delays will be magnified. Dealers who invest in e-commerce platforms, real-time inventory visibility, and regional stocking strategies will gain a competitive edge. Technicians Must Be Trained to Support Smart Warehouses Service departments will need to evolve. Technicians are no longer just wrench-turners; they need to be systems thinkers who can troubleshoot not only forklifts but also understand how those trucks interact with other automation technologies. This includes knowledge of sensor systems, battery management software, telematics, and other related technologies. Dealerships should invest now in technician training that keeps pace with this expanding skill set. Parts Sales Are Becoming More Specialized As automation reshapes warehouse operations, the range of specialty attachments, sensors, batteries, and high-wear items associated with high-cycle, tech-integrated environments will expand. Dealers who understand this shift and proactively stock and promote these specialized parts will better serve their customers—and increase their margins. Predictive and Remote Maintenance Models Are Rising Automation isn’t just about moving goods faster—it’s also about predicting failure before it happens. Dealerships should expect an increase in customers inquiring about remote monitoring, telematics-based service models, and predictive maintenance options. Those that embrace these tools will not only reduce customer downtime but also create stickier, more long-term service relationships. The Dealer’s Role Is Becoming More Strategic As warehouses adopt complex systems, they’ll rely more heavily on trusted partners to help them optimize those systems. This positions the dealership not just as a vendor but as a strategic advisor. Offering insights, service planning, system integration advice, and even retrofit suggestions will become part of the aftermarket value proposition. Hiring and Training for the Next-Gen Aftermarket Team As automation, robotics, and AI continue to integrate into warehouse operations, one of the most critical shifts lift truck dealerships must make is in how they build and train their aftermarket teams. Traditional roles within the parts and service departments are being stretched—and in some cases redefined—to meet the technical demands of this evolving customer base. The Rise of the Specialized Parts Professional Historically, the parts counter has focused on sourcing and supplying components tied to forklifts and other off-highway industrial equipment. That job still exists and remains critical. But today’s warehouse customers are increasingly asking their dealers to support a broader range of systems—including conveyor belts, robotic shuttles, vertical lift modules (VLMs), automated storage and retrieval systems (AS/RS), and a growing number of smart sensor and control technologies. This shift raises the question: Can a single parts person effectively serve both markets? In many cases, the answer is no—or at least, not for long. Dealers are starting to recognize the value of segmenting their aftermarket staff by specialization. That might mean hiring a dedicated parts expert trained explicitly in supporting warehouse automation systems and industrial controls, separate from the traditional forklift parts team. These roles require familiarity with different product catalogs, supplier relationships, and service-level expectations. Selling a laser sensor for an AS/RS is a very different transaction than selling a mast chain for a 5,000 lb. forklift. Dealers who want to win business from warehouses adopting automation should consider building a dedicated parts desk—or at the very least, assigning a go-to person trained in automation system components, software integrations, and OEM-specific support structures. Service Technicians: Generalists vs. Specialists On the service side, the need for specialization is even more pronounced. Technicians trained in internal combustion forklifts or electric lift trucks are not automatically equipped to troubleshoot a malfunctioning conveyor PLC, reprogram a robotic cart, or calibrate

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Safety is more than a checklist—It’s a sales opportunity

Tue, 20 May 2025 05:00:23 +0000

Each June, National Forklift Safety Month serves as a valuable reminder of how critical safety is to the material handling industry. But it’s not just a time for awareness—it’s a prime opportunity for your dealership to strengthen customer relationships, differentiate yourself in a competitive market, and drive growth in your parts and service departments. Forklifts are essential to warehouse and distribution operations, but they also present serious risks. According to OSHA data, thousands of injuries and dozens of fatalities occur each year due to forklift-related incidents. Many of these are preventable with the right equipment, training, and safety protocols in place. For dealers, that reality presents both a responsibility and a business opportunity. In a previous edition of mine on this topic, I emphasized how offering safety-related products and services reinforces your role as a trusted advisor to your customers. This year, I want to expand that idea by focusing on how smart safety strategies can translate into tangible sales and profitability gains for your parts and service departments. Safety is More Than a Checklist—It’s a Sales Conversation Many dealerships treat safety as a compliance issue—important, but not necessarily strategic. That’s a missed opportunity. When your parts and service teams actively promote safety products, inspections, and training, you create new touchpoints to serve your customers and generate additional revenue. Think about your service technicians. They’re often the first to notice missing seatbelts, worn backup alarms, or cracked mirrors during PMs or on-site calls. Equipping your service team with a list of safety upsell opportunities—back-up cameras, LED warning lights, pedestrian alert systems—turns routine maintenance into a conversation that protects people and boosts your bottom line. At the same time, your parts counter team should be fluent in safety solutions. Do they have projection lights, strobe beacons, and horn kits ready to recommend when a customer comes in for a standard replacement part? Are they promoting high-visibility gear, impact barriers, or overhead guard covers during June’s safety spotlight? These small additions not only enhance your customer’s fleet; they contribute directly to your sales mix. The Rise of Visual and Proximity-Based Safety Tech One area that continues to evolve—and create opportunity for dealerships—is visual safety and proximity alert technology. Traditional safety lights and alarms still serve a critical function, but today’s options go far beyond the basics. For example, TVH’s Play It Safe product line includes: Blue and red projection lights that visually alert pedestrians to a forklift’s presence, even around blind corners or high-rack intersections. Rotating beacons and LED strobes to enhance visibility in busy or low-light environments. Zone lights that create visible safety zones around a forklift to maintain proper pedestrian distance. These products are effective, affordable, easy to install, and ideal for bundling into fleet safety upgrades or PM packages. As fleets age or companies add new operators, these simple add-ons can drastically reduce risk. That means ongoing revenue streams for your dealership through retrofits, service calls, and parts replenishment. PPE and Facility Safety: Expand Beyond the Forklift Forklift safety doesn’t end at the lift truck. Dealerships should also offer personal protective equipment (PPE) and facility safety products. Many of your parts suppliers’ catalogs include: Hi-vis clothing and safety vests Hard hats, face shields, and safety glasses Hand and foot protection Column guards, floor striping, and pedestrian barriers For customers trying to meet warehouse safety audits or ANSI/OSHA standards, these items are often purchased in bulk and replenished regularly. By keeping them stocked and suggesting them during sales conversations, your dealership can expand its aftermarket footprint beyond just forklift components. Even something as simple as a safety mirror in a warehouse aisle or a replacement horn on an older unit shows that your dealership is thinking ahead for your customers. That builds trust and repeat business. Turn Safety into Service Opportunities National Forklift Safety Month is also the perfect time to offer safety inspections as a service. Whether performed by your shop techs or field service team, these walk-throughs can flag missing or damaged components and lead directly to quotes for: New seat belts or operator restraints Wheel and tire replacements Lighting upgrades Backup alarms or cameras These inspections take relatively little time but can generate meaningful add-on sales while providing clear value to the customer. More importantly, they show your dealership’s proactive commitment to keeping your customers compliant and safe. From Compliance to Competitive Advantage When your dealership leans into safety, you aren’t just checking a box—you’re carving out a competitive edge. Customers increasingly want suppliers who take a holistic view of their operations. If your team consistently points out safety risks, recommends helpful solutions, and offers easy ways to stay compliant, you’re more than a vendor. You’re a partner. And that partnership pays off. Safety products generally have healthy margins, and bundling them with standard parts orders or service visits increases average ticket size. Customers are more likely to stick with vendors who help them avoid costly accidents and improve workplace morale. National Forklift Safety Month is a built-in marketing campaign that dealerships can and should leverage. Host a safety-themed open house. Promote safety bundles on your website and social media. Equip your team with talking points and flyers. Run a contest for operators who complete safety refreshers. Send an email campaign featuring your top-selling safety items. Whatever you do, don’t let June come and go without making the most of it. Safety doesn’t just protect your customers—it can also protect and grow your business. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for over 19 years, serving in various roles, including service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories to various equipment markets, including material handling, equipment rental, and construction and earthmoving dealerships.

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When disasters strike, do you have established vendor relationships to help your company stay operational?

Sun, 20 Apr 2025 05:00:24 +0000

In one of my early editions, I discussed the hidden costs of variability in the supply chain. This is always a relevant topic worth discussing; in that edition, it focuses on shipping delays, raw material shortages, and uncertainty about when your products will arrive. At the time, you were used to your suppliers providing next-day shipping or local same-day pickup. Weekly stock orders arrive on the same day each week, like clockwork. All of those conveniences we take for granted were unknown variables back then. While we have returned to somewhat normal ‘clockwork’ deliveries, this year has presented its challenges thus far due to weather conditions. Record snowfall and freezing temperatures hampered the start of 2025. Additionally, natural disasters are striking with greater frequency and intensity than ever before. For material handling dealers, disruptions due to weather or natural disasters don’t just slow things down—they threaten your customer relationships, increase costs, and create uncertainty in an already competitive industry. When parts don’t arrive on time, your customer applications, such as warehouses and distribution centers, can come to a halt, and your customers will quickly seek alternative solutions. The question isn’t whether supply chain disruptions will happen but how prepared your dealership is to handle them when they do. When disasters strike, dealers’ toughest challenges keep critical parts flowing while navigating supply chain disruptions, shipping delays, and unpredictable customer demands. A single storm or wildfire can shut down a key supplier, leaving dealers scrambling to find alternatives. Freight routes get clogged, labor shortages emerge, and what was once a simple reorder turns into a logistical nightmare. These disruptions lead to longer lead times, higher costs, and customer frustration—things no dealer wants to deal with. So, what does this mean specifically for smaller forklift dealerships or independent material handling dealers? Unlike large, factory-owned operations, smaller dealers often lack the buying power or extensive supplier networks to absorb shocks easily. Additionally, they may not have the luxury of stockpiling large amounts of parts or the ability to pull inventory from multiple branches. Every disruption hits closer to home—directly affecting the ability to keep their customers’ fleets running. For example, if your primary supplier’s warehouse is shut down due to a hurricane, your parts orders could be delayed for weeks. That delay doesn’t just impact your inventory; it also disrupts your service technicians’ ability to complete repairs on time. Missed deadlines for preventive maintenance agreements, delayed customer repairs, or repeated back orders will damage your dealership’s reputation and profitability. These supply chain slowdowns can also create cash flow challenges. You may be required to source higher-cost parts from alternative suppliers or incur expedited shipping fees to meet customer demands. Rising freight costs, combined with unexpected supplier surcharges, erode margins and necessitate challenging pricing decisions. Additionally, with tight inventories, you risk losing parts sales to competitors who can source the part more quickly. That’s why, if you’re a smaller dealership, you must be intentional about how you prepare. Relying on a single supplier with a single warehouse leaves your business vulnerable. Building relationships with vendors that have multiple distribution centers (Hint, Hint!)—even if they aren’t your primary suppliers—gives you more flexibility when emergencies arise. Having backup plans doesn’t necessarily mean doubling your inventory but having go-to options for high-demand parts. Another area small dealers often overlook is communication. Customers today expect transparency, especially when their equipment is down. Being upfront about potential delays, explaining why they occur, and offering realistic solutions like substitute parts or service alternatives helps maintain a strong relationship—even when things don’t go perfectly. You might not be able to control the global supply chain, but you can control how you respond. On the inventory side, even if you don’t have advanced systems, there’s value in closely tracking which parts tend to be bottlenecks during past disruptions. Perhaps it’s hydraulic components, control modules, or specific brands that are more difficult to source when disaster strikes. For example, maintaining a modest buffer stock of these items, especially during peak seasons or hurricane-prone months, can prevent a service shutdown when the next storm arrives. Technology is another area where small dealers can gain an edge. Cloud-based inventory platforms or vendor portals make it easier to see when suppliers are experiencing slowdowns. You don’t need to invest in expensive systems to benefit—many suppliers now offer real-time visibility tools. Using those tools to react quickly, place orders earlier, and keep your service team informed is key. Logistics flexibility is crucial, too. You may need to get creative working with local courier services, partnering with other regional dealers to share inventory in a pinch, or shifting to suppliers with distribution centers closer to your market. Having options lined up before disaster strikes helps you avoid last-minute panic. The truth is that supply chain disruptions aren’t going to disappear. If anything, they’re becoming part of how we do business. That’s why being prepared can’t be something you only think about when things go wrong; it must be part of how you run your business every day. It’s not about fancy tools or overcomplicated strategies. It’s about maintaining a clear line of sight on your inventory, knowing where your parts are sourced, and staying ahead of market changes. At the end of the day, it comes down to being able to adjust quickly and keep your customers taken care of, even when things don’t go as planned. The dealers who stay flexible, work closely with their suppliers, and communicate openly with their customers will be the ones who remain steady, no matter what’s happening around them. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for over 19 years, serving in various roles, including service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories to various equipment markets, including material handling, equipment rental, and construction and earthmoving dealerships.

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Is your dealership prepared to take on the electrification market shift?

Thu, 20 Mar 2025 05:00:26 +0000

As we enter the second quarter of 2025, the material handling industry continues to see the trend toward electrification and sustainability initiatives. While regulatory pressures have fluctuated, more end-users want to transition their forklift fleets to electric models over internal combustion engine (ICE) units. This shift is not confined to one region—it is reshaping fleet policies and dealership strategies nationwide as companies seek cleaner, more cost-effective equipment solutions. As a result, dealerships and service providers must adapt their strategy to support customers switching to electric-powered fleets. Electrification isn’t just about compliance—it’s a fundamental market shift affecting how dealerships sell, service, and support their customers. While much attention is on new equipment sales, the real impact will be felt in service and parts departments, where traditional ICE-driven revenue streams are evolving. This transition brings both challenges and opportunities to dealerships. How can service and parts managers prepare for an electric-dominated market? What strategies will sustain and grow their aftermarket business? Let’s explore how these departments must adapt to the demands of electrification. Service Departments Electric forklifts have fewer moving parts than their ICE counterparts, which means fewer traditional service visits. No more oil changes, fuel system maintenance, spark plug replacements, or exhaust system repairs. This shift challenges service departments that rely on recurring maintenance work to drive revenue. However, there are several strategies dealerships can use to stay relevant in the electrified market. Shift to Predictive and Proactive Maintenance Instead of focusing on reactive repairs, service departments should shift toward predictive maintenance strategies that leverage technology and data analytics. This approach minimizes unexpected downtime and helps customers extend the lifespan of their electric forklifts, ensuring optimal performance over time. One key area of focus is battery health monitoring. Many modern electric forklifts have smart battery management systems (BMS) that track charge cycles, temperature fluctuations, and capacity degradation. By offering remote battery monitoring services, dealerships can proactively alert customers to potential issues before they escalate into costly repairs or forklift failures. Another game-changer is telematics and IoT-based service plans. With built-in telematics, electric forklifts generate valuable data on usage patterns, charging habits, and component wear. Dealerships can use this information to provide subscription-based service programs, allowing them to anticipate maintenance needs and address minor issues before they impact productivity. This proactive approach strengthens customer relationships by reducing unplanned downtime and ensuring their fleet runs smoothly. Retraining Technicians for High-Voltage Systems One of the most significant shifts in forklift servicing is the need for specialized training in high-voltage electrical systems. While ICE forklift technicians are experienced in mechanical repairs, servicing electric forklifts requires an entirely different skill set. Technicians must become proficient in lithium-ion and lead-acid battery maintenance, high-voltage circuit troubleshooting, battery cooling and thermal management systems, electric motor diagnostics, and inverter repairs. Without this expertise, your service department risks falling behind as more customers transition to electric fleets. Your dealership should invest in comprehensive training programs covering key electrical fundamentals, including basic circuits, DC motors, control systems, and advanced motor controls such as SCR and transistor-based systems. Hands-on troubleshooting sessions are particularly valuable, allowing your technicians to apply their knowledge to real-world scenarios by diagnosing and resolving introduced faults. TVH University’s Electric Truck training curriculum is an excellent resource for dealerships looking to upskill their workforce. It offers structured courses designed to equip technicians with the knowledge and hands-on experience required to safely and effectively service electric forklifts. Failing to adapt to this industry shift could mean losing customers who need reliable and knowledgeable service providers for their electric fleets. Dealerships that take a proactive approach to technician training will retain their current customers and position themselves as leaders in their respective markets. Expanding Service Capabilities With electric forklifts requiring fewer traditional service visits, dealerships have an opportunity to enhance their on-site service capabilities. Expanding service offerings ensures that customers receive timely diagnostics and battery maintenance without unnecessary downtime. Well-equipped service vans, stocked with battery testing tools, software diagnostic equipment, and essential replacement components, allow technicians to address issues efficiently at the customer’s location. Parts Departments Traditional parts sales are shrinking with the shift to electrification, but new opportunities are emerging. Instead of engine and fuel system parts, demand is shifting to batteries, electrical components, and charging infrastructure. Parts departments must have the proper inventory to support battery maintenance and repairs. Partnering with the right suppliers can streamline procurement and keep essential battery-related products readily available. Stocking items such as battery cleaning and repair supplies, gauges, indicators, replacement cells, and vent caps ensure customers can maintain their battery systems efficiently. Cables, connectors, and terminal covers are critical components that help your customers keep their battery-powered equipment running safely and effectively. In addition, battery watering solutions are key in maintaining lead-acid batteries, preventing premature wear and performance issues. Keeping a comprehensive battery parts inventory is essential. Partnering with reliable suppliers and implementing strategic inventory initiatives for these products ensures your parts department stays ahead of demand while maximizing revenue opportunities. As more forklift fleets transition to electric, aftermarket strategies must evolve to keep pace. While demand for traditional ICE parts and maintenance services may decline, new revenue opportunities are emerging for dealerships. Investing in technician training for high-voltage systems, battery diagnostics, and electric motor repairs will be critical to supporting this shift. At the same time, service departments must rethink their approach, moving toward predictive maintenance programs and expanding mobile service capabilities to keep customers up and running with on-site battery diagnostics and repairs. Dealerships that take action now will position themselves as key service partners in the growing electric forklift market, regardless of fluctuating regulatory pressures. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 19-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment rental, and construction/earthmoving dealerships.

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Is your dealership prepared to take on the electrification market shift?

Wed, 19 Mar 2025 05:00:26 +0000

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Is your parts department the backbone of your dealership? It better be

Thu, 20 Feb 2025 06:00:06 +0000

The parts department is often referred to as the backbone of a dealership. It provides essential support to the service team, ensures customers receive the necessary components and contributes significantly to the dealership’s bottom line. Despite its critical role, the parts department frequently encounters challenges in maintaining operational efficiency, keeping up with customer expectations, and competing with online resellers. Addressing these challenges requires a strategic approach prioritizing productivity, profitability, and customer satisfaction. Optimizing the parts department involves more than just day-to-day operations. Adopting key strategies and aligning efforts with broader dealership goals can turn your parts department into a competitive advantage. Let’s explore some actionable ways to boost productivity, improve customer retention, and create lasting success for your parts department. Streamline Inventory Management Efficient inventory management is the cornerstone of a productive parts department. To achieve this, your dealership should improve process flow, organize inventory effectively, and remove obsolete or non-returnable parts. Regular audits are critical in identifying slow-moving or outdated stock, allowing your parts department to make room for high-demand items. Using digital inventory tools can make it much easier for your team to quickly and accurately locate parts when needed. Consider upgrading your ERP system if you do not have a sufficient inventory management system today. Pairing these tools with a well-organized parts warehouse layout reduces wasted time searching, streamlines your workflow, and makes delivering top-notch service to your customers easier. Support the Service Team’s Success A strong relationship between the parts and service departments can significantly enhance productivity in your business. The parts department should strive to become the cornerstone of the service team’s success. This requires fostering collaboration and understanding between the two teams. It is essential to establish workflows that ensure technicians have the parts they need on time. Cross-training parts personnel to understand service technicians’ specific needs and timelines helps bridge the gap between departments. Additionally, pre-staging parts for scheduled service appointments can reduce delays and improve efficiency. If you don’t currently have real-time communication channels in place, consider simple solutions like email updates, text notifications, or even a dedicated phone line to keep your team informed about parts availability and delivery schedules. These tools can help strengthen your partnerships and improve overall efficiency. Leverage the Competitive Advantage of Service Technicians The growing presence of internet parts resellers poses a challenge for the traditional dealership parts department. Indeed, as you’ve read in many of my past editions, I favor establishing a digital strategy and e-commerce site to sell your products online. Whether you currently have an e-commerce solution in place or not, your service technicians still offer a unique advantage that online competitors cannot replicate. By positioning technicians as trusted advisors, your dealership can demonstrate the added value of purchasing parts directly from them. Training technicians to identify upselling opportunities during service visits is a powerful strategy. For example, they can recommend preventive maintenance parts or upgrades that benefit the customer long-term. Bundling parts and services into convenient packages further highlights your dealership’s ability to provide comprehensive solutions, ensuring a seamless customer experience. Differentiate with Value-Added Offerings Your parts department can set itself apart by offering value-added programs tailored to your customers’ needs. Consider introducing extended warranties for parts, giving your customers confidence in their purchases and building trust in your dealership. Promote reconditioned and certified parts as reliable, cost-effective alternatives, highlighting their quality and dependability to attract budget-conscious buyers. Offering tailored parts kits or bundles for specific maintenance tasks can demonstrate your understanding of their needs while showcasing convenience and savings. By effectively promoting these offerings, you can educate your customers, build loyalty, and keep them returning to your dealership. Focus on Customer Retention Keeping your customers coming back is key to growing your parts business. Focus on making it easy for them to work with your dealership and anticipate their needs to stay ahead of your competition. Use customer data and purchase history to keep frequently ordered parts in stock and suggest products they might need. Data-informed decision-making continues to be a trend we touch on here in this column if you’ve noticed. Additionally, consider offering creative delivery options like parts consignments at job sites or same-day delivery for urgent orders; it’s all about making things convenient for them. Don’t forget to ask for feedback regularly; it’ll help you identify areas to improve and show your customers that you’re committed to meeting their needs and building strong, lasting relationships. Becoming the Go-To Parts Provider in Your Market The parts department can potentially be your dealership’s most significant competitive asset. By focusing on productivity, profitability, and customer satisfaction, you can create a parts operation that supports your internal teams and strengthens customer relationships. The keys to success lie in strategic inventory management, fostering collaboration with the service team, leveraging unique competitive advantages, and delivering unmatched value to customers. Making intentional changes to boost operational productivity ensures your parts department stays at the heart of your dealership’s success. The time to step up is now. By implementing these strategies, your parts team can go above and beyond, drive profitability, and become a critical part of your business’ growth. Ready to make your parts department the standout leader this year? Start today and seize the chance to build a more substantial, efficient operation. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 19-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment rental, and construction/earthmoving dealerships.

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Raising your labor service rate creates opportunities

Thu, 23 Jan 2025 15:53:29 +0000

I was talking to a General Manager of an OEM lift truck dealership the other day in a major metropolitan market. He told me they had just increased their service labor rates. I couldn’t believe it when he told me they were up over $200 per hour. That starkly contrasts the days when breaching the $100 per hour rate seemed like a daring move. Additionally, he told me they charge a flat 1.5 hours for travel, with a minimum of one hour of work—$ 500 minimum for any retail service job. For material handling dealerships and their customers, these rising rates are a double-edged sword—essential for sustaining skilled labor but challenging for customers’ budgets. Our industry is tasked with finding ways to address the growing financial strain with proactive solutions that maintain customer satisfaction and loyalty. Higher labor rates can certainly be a pain point for your customers. Let’s examine some actions dealers can take to alleviate these pain points while allowing their businesses to thrive and remain competitive. Some might already be familiar with these strategies, while readers newer to the industry might find this useful. Understanding the Customer’s Perspective From a customer’s standpoint, the surge in labor rates raises several concerns: Sticker Shock: Customers accustomed to lower rates may experience immediate resistance to invoices reflecting the high per-hour repair rates. Unpredictable Costs: Forklift repairs can be sporadic, making it difficult for them to budget effectively. Risk of Deferred Maintenance: High costs may prompt customers to delay essential services, increasing the likelihood of equipment breakdowns and unplanned downtime. By understanding these pain points, dealerships can better position themselves as partners in solving—not contributing to—these challenges. Strategies to Address Rising Labor Rates Offer Full Maintenance Agreements (FMAs) One of the most effective ways to help customers manage costs is through Full Maintenance Agreements (FMAs). These agreements bundle routine maintenance and repairs under a predictable monthly fee, eliminating surprise expenses. They also encourage customers to perform the necessary services on schedule, ultimately reducing long-term costs. For example, a dealership offering an FMA for $500 per month could include scheduled maintenance visits, parts replacements for worn items, and labor for standard repairs. While the customer gains cost predictability, the dealership benefits from a steady revenue stream and increased customer loyalty. Educate your customers on the long-term savings FMAs can offer compared to paying for repairs on an ad hoc basis. Develop Tiered Service Plans Not all customers have the same maintenance needs, so providing tiered service plans, for example, basic, standard, and premium—can cater to various budgets. Examples could be: Basic Plan: Covers preventative maintenance services. Standard Plan: Adds coverage for minor repairs and discount rates on parts. Premium Plan: Includes everything in the basic and standard tiers, plus priority scheduling, telematics monitoring, and expanded labor coverage. These examples of flexible plans would allow your customers to choose the level of service that aligns with their operational needs and budget. Encourage Proactive Maintenance Programs Proactive maintenance programs benefit both customers and dealerships. Regularly scheduled maintenance identifies potential issues before they escalate into costly repairs. For your customers, this means less downtime and lower long-term expenses. For your dealership, it creates more predictable workloads and strengthens customer relationships. On average, according to industry data, customers engaging in routine maintenance programs report up to 30% fewer unexpected repairs and a 20% increase in forklift lifespan. Adopt Advanced Technology to Streamline Repairs More and more dealers are utilizing advanced technology, such as diagnostic software and telematics, to streamline repairs and reduce labor hours. Telematics systems, for instance, enable real-time monitoring of forklift performance, allowing technicians to detect and address minor issues before they escalate into costly breakdowns. For example, a telematics alert might flag a hydraulic pressure anomaly, prompting a quick fix during a scheduled maintenance visit rather than an emergency repair. These tools improve operational efficiency and help your dealership position itself as a forward-thinking partner invested in your customers’ success. By proactively identifying potential problems and minimizing downtime, you can demonstrate a commitment to providing value beyond the repair bay. If you’re not offering your customers a telemetry solution or advanced diagnostic technology, now is the time to explore these solutions. These tools can dramatically reduce repair times, prevent costly customer breakdowns, and make your dealership a leader in proactive customer support. Your business can turn rising labor rates into an opportunity by adopting strategies like FMAs, tiered service plans, and advanced technology. These approaches not only address your customer’s pain points but also foster loyalty and predictable revenue, making your dealership a trusted partner. A dealer I recently met with shared a success story of the savings they provided to one of their customers with a fleet of 50 forklifts. This dealer offered their customer an FMA to control repair expenses. Within a year, they reduced unplanned repair costs by 40% and increased their uptime by 30%. They alleviated the financial strain on their customers while improving operational efficiency. Assess your dealership’s service offerings to identify better ways to address customer needs. Effective communication, customer education, and innovative service structures are essential. By prioritizing these strategies, you can strengthen relationships, enhance satisfaction, and foster long-term growth. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 19-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment rental, and construction/earthmoving dealerships.

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New Year actionable and proactive strategies that drive growth

Fri, 20 Dec 2024 06:00:42 +0000

Another January is upon us, and with it comes the opportunity to reflect on the year behind us and set our sights on what’s ahead. Cheers to the New Year! I hope that as you read this, your business and personal successes in 2024 have set a strong foundation for an even better 2025. Each January, we find ourselves looking at the challenges and opportunities facing our industry, and this year is no different. At the heart of it all, though, is providing exceptional customer service in the aftermarket—a topic that’s never out of season and always at the core of your business growth. Dealers I speak with are increasingly challenged to deliver quick, value-driven solutions to customers. Furthermore, they always seek actionable and proactive strategies to drive growth, enhance customer satisfaction, and adapt to industry trends. Here are some specific call-to-action items to consider as we head into the New Year: Optimize E-Commerce Platforms for Parts Sales Implementing an e-commerce platform for a forklift dealership can provide several significant benefits, including increased sales, 24/7 availability, and enhanced after-sales support. Most importantly, an e-commerce platform modernizes your dealership’s parts department, making it more customer-centric and operationally efficient. Enhance your e-commerce site with easy-to-use search and navigation, mobile responsiveness, and customer self-service options; this is essential for meeting the growing consumer demand for online accessibility. Make online purchasing seamless for your customers, streamline order processing, and expand your reach to a broader customer base. Dedicated Customer Account Page Creating dedicated customer account pages can revolutionize how you serve your key accounts by integrating parts, service, rental, and sales departments into a single, streamlined platform. These secure portals give customers convenient access to their order history, service schedules, rental agreements, and purchase records. By simplifying account management, you save customers time, enhance operational efficiency, and build stronger relationships. To implement this, consider investing in technology that integrates with your existing systems, creating a unified dashboard for customers. Today’s platforms are available in our industry that offer features like service reminders, real-time rental availability, and sales inquiries. Think of such a platform as a comprehensive tool for managing all customer interactions. Be sure you have a platform that offers mobile-friendly access and live support to ensure your customers can manage their accounts on the go, further increasing satisfaction and loyalty. This customer-centric tool will position your dealership as an indispensable partner to your customers, delivering value and convenience across all departments while fostering long-term growth. Personalized Reordering Alerts for Key Customers If investing in the technology mentioned above is not feasible for 2025, you can also consider this alternative, specifically for the parts department: make parts ordering proactive by analyzing which parts your top customers regularly purchase. Please set up an alert in your system to remind your parts sales professionals to reach out and offer to reorder these parts for them a month before they typically run out. This personalized service shows your customers that you’re paying attention to their needs and partnering with them to reduce their downtime. Forklift Tune-Up Checklist at the Parts Counter A simple forklift ‘tune-up’ checklist can be a highly effective sales tool for your parts counter personnel. When a customer comes in for a minor part, encourage parts counter staff to discuss the following with your customer: Ask about tire condition on the lift they are procuring parts for, and recommend replacement tires or a spare set to prevent downtime from wear. Ask about fork wear and suggest new forks or extensions to address cracks or bends that impact safety. This would also be a good time to upsell a ‘fork wear gauge.’ Ask the customer about their fluids, offer hydraulic fluid, engine oil, or a maintenance kit. For battery health, upsell maintenance kits, watering systems, or replacement batteries. Additionally, don’t forget to ask about lift chains and hoses and recommend replacements, repair kits, or lubricants, stressing the importance of the reliability of these items for the prevention of breakdowns. You could even offer this as a printed guide with your company branding for the customer to take back to their operation. This ‘tune-up’ checklist is an easy, low-pressure way to upsell parts, often resulting in additional parts or service business. Promote Remanufactured (Reman) Products It’s clear that circular economy practices aren’t just a passing trend. They’ve become a key part of the material handling industry’s evolution. Companies are increasingly adopting these practices to not only meet customer expectations but also reduce costs, enhance sustainability, and foster innovation. Remanufactured parts provide a cost-effective and sustainable alternative for many customers, making them an excellent option to promote at the parts counter or on service repairs. When a customer inquiries about an expensive or hard-to-find part, take the opportunity to suggest reman options. Highlight the significant cost savings these parts offer compared to new ones, assure your customers that reman parts meet OEM standards and come with warranties, and educate them on the environmental benefits of choosing a more sustainable solution. Promoting reman products supports cost-conscious customers and aligns your dealership with important sustainability initiatives. By implementing some of these action items, your dealership can make 2025 a year of growth, efficiency, and enhanced customer loyalty. These actions can make tangible improvements in your daily operations, providing your customers with the kind of proactive service that separates you apart from the competition. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 19-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment rental, and construction/earthmoving dealerships.

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Backorder management is more than just keeping parts flowing

Sun, 20 Oct 2024 05:00:16 +0000

I recently attended MHEDA’s Parts and Service Management Conference, and as is often the case with these industry events, I came away inspired with content for this month’s edition. One of the presenters was an industry colleague who gave an insightful presentation on backorder management and building processes for unforeseen delays. As she noted, a phrase that is all too common for parts and service managers is, “We’re just waiting on parts…” Let’s take a closer look at this topic and explore how you can strategically minimize the negative impacts of backorders. Your customers have grown accustomed to same-day delivery and rapid fulfillment, and the pressure to meet high expectations is greater than ever. Backorders are not a matter of if but when, and when they occur, they can create significant disruption throughout the supply chain. The key to handling these challenges effectively is preparation — building processes and teams that can respond proactively rather than reactively. When a backorder occurs, it affects more than just inventory levels. The impact ripples through your entire organization. A low parts fill rate can cause service work-in-progress (WIP) to back up, technicians may become idle, and customer satisfaction can suffer. Uptime is crucial to your customer’s operation, so even minor delays can lead to significant financial loss for your customers, resulting in frustration and potentially damaged relationships. Strategies to reduce the impact of backorders The first step in managing backorders effectively is to have strategies in place that minimize their impact on daily operations and customer experience. Several key approaches to consider are prioritizing communication, optimizing inventory, being flexible in sourcing, and leveraging technology. Clear communication with suppliers and customers is essential. Build strong relationships with your suppliers and maintain open communication to anticipate delays and adjust as needed. Be transparent about delays and expected timelines to maintain customer trust and loyalty. Optimizing inventory is also crucial. Analyze historical data to identify back ordered parts and adjust stock levels accordingly frequently. Use predictive analytics to forecast demand and implement a dynamic safety stock strategy that adjusts based on lead times and demand variability, ensuring sufficient inventory without overstocking. Diversify your supplier base to reduce dependency on a single source. Establish multiple supplier relationships or alternative sources to create backup options and increase flexibility during supply chain disruptions with primary suppliers. Invest in technology that enhances supply chain visibility. Real-time data analytics can help identify potential issues before they escalate, while automated ordering systems keep you informed about orders and priorities. Discuss API services with your ERP provider and suppliers to enable real-time access to pricing, availability, order submissions, and shipment notifications. Developing adaptable team members Beyond strategy and technology, the people managing the backorder process in your organization are critical to its success. A well-prepared team can make all the difference in minimizing the negative effects of backorders. Regular training sessions can empower your team members to handle backorder situations with confidence and agility. Equip your staff with the knowledge and tools they need to make quick decisions, understand alternative options, and find creative solutions to supply chain issues. Cross-training is equally essential. When team members understand multiple roles, they can step in where needed, maintaining workflow continuity. For instance, a parts manager should understand service scheduling well, and a service coordinator should be familiar with the parts ordering process. This flexibility ensures that operations run smoothly, even when key personnel are unavailable. Create an environment where collaboration is encouraged and problem-solving is celebrated. Regular team meetings to discuss backorder challenges and share ideas can foster a culture of continuous improvement. Recognize and reward innovative solutions that improve backorder management processes, reinforcing a proactive approach. When team members feel empowered to contribute ideas and solve problems, they are more likely to take ownership of the issues at hand, leading to quicker and more effective resolutions. Standardizing backorder processes Consistency is key in any operational process, and backorder management is no exception. Standardized processes help ensure that every team member understands their role in managing backorders, which leads to more predictable outcomes and better customer satisfaction. Start by developing and documenting clear procedures for managing backorders. These procedures should cover every process step, from identifying a potential delay to communicating with the customer. Standardized workflows help reduce confusion, minimize errors, and provide a framework for continuous improvement. As mentioned earlier, technology can play a significant role in standardizing processes. Use software tools that provide real-time updates on inventory levels, track supplier performance, and automatically generate alerts for potential delays. Automated communication tools can streamline the process of informing customers about backorders, providing consistent and accurate information without the need for manual intervention. Establish key performance indicators (KPIs) that track important metrics such as backorder duration, parts fill rate, customer satisfaction scores, and service WIP levels to ensure your backorder management processes are effective. Regularly review these KPIs to identify areas for improvement and adjust your strategies accordingly. Creating stability for your customers Backorder management is about more than just keeping parts flowing; it’s about creating a sense of reliability and stability for your customers. When customers trust that you manage unforeseen delays professionally and transparently, they are more likely to remain loyal, even when challenges arise. Focus on building a reputation for dependability. By implementing effective backorder strategies, developing adaptable team members, and standardizing processes, you create an environment where backorders become less of a disruption and more of an opportunity to demonstrate your commitment to customer satisfaction. Remember, backorders are inevitable, but with the right strategies and processes in place, you can ensure they are just a temporary bump in the road, not a detour. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment

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Dealers Embrace Sustainability: Managing Resources & Environmental concerns

Fri, 20 Sep 2024 05:00:24 +0000

In the past few years, the material handling industry has seen a significant shift toward sustainability, driven by the need to better manage resources and address environmental concerns. The concept of the circular economy is driving this shift for dealerships. This mindset emphasizes maximizing the use of equipment and its parts, reducing waste, and establishing processes that ensure equipment and components stay in service for as long as possible. As we enter Q4 of 2024, it’s clear that circular economy practices aren’t just a passing trend. They’ve become a key part of the evolving material handling industry. Companies increasingly adopt these practices to meet regulations and customer expectations, reduce costs, enhance sustainability, and foster innovation. Circular Economy Defined The circular economy is a system that aims to keep resources in use and get the most value out of them, unlike the traditional “take-make-dispose” approach. In a linear economy, products are made from raw materials, used, and then thrown away. Conversely, the circular economy aims to keep resources in use for as long as possible, get the maximum value from them, and then recover and regenerate materials at the end of their life. Key strategies of the circular economy involve designing products and components for durability, ensuring they last longer, are easy to repair, and can be upgraded. Another important approach is remanufacturing and refurbishing, which focuses on restoring used products and components to a like-new condition. Additionally, recycling and material recovery play a crucial role by reclaiming raw materials from used products and reintegrating them into the manufacturing process. Circular Economy in the Material Handling Industry The material handling industry is well-positioned to benefit from circular economy practices. Forklifts, conveyors, and automated systems combine heavy use with long lifespans, making them perfect candidates for strategies like remanufacturing, refurbishing, and recycling. Remanufacturing and refurbishing are becoming more common in the material handling industry. Companies are offering refurbished forklifts, pallet jacks, and other equipment as cost-effective and environmentally friendly alternatives to buying new ones. These refurbished machines are restored to a high standard and often come with warranties similar to those of new equipment, giving customers reliable and affordable options. Recycling is another vital part of the circular economy in material handling. Companies are finding innovative ways to recover valuable materials from equipment that has reached the end of its life. Metals, plastics, and other materials are extracted and recycled, reducing the need for new raw materials. This lessens the environmental impact and lowers costs tied to getting new materials. Some manufacturers are even developing programs to take back used products from customers, ensuring that valuable materials are recovered and reused in the production process. This approach helps reduce the industry’s overall carbon footprint and supports a more sustainable supply chain. Circular Economy for Forklift Replacement Parts Remanufactured forklift parts offer several key advantages that can drive sales, boost your dealership’s profitability, and enhance customer satisfaction. Cost savings are a primary driver. Remanufactured parts typically cost 30-50% less than new OEM parts, offering a more affordable option for your customers, particularly those with budget constraints. This price advantage can lead to increased sales volume. Because the cost of refurbishing used parts is generally lower than manufacturing new ones, your dealership can enjoy higher profit margins on these parts. Quality assurance is crucial for your customer’s confidence. High-quality remanufactured parts are rebuilt to meet or exceed original OEM specifications, ensuring reliability and performance comparable to new parts. Offering warranties on these parts gives your customers peace of mind, reducing perceived risk and making them more likely to purchase. Another significant benefit is availability and lead times. Remanufactured parts can often be sourced more quickly than new parts, especially for older or discontinued models, reducing customer equipment downtime. Faster lead times also help dealerships respond to urgent customer needs, improving service levels and satisfaction. Promoting the sustainability of remanufactured parts can appeal to your environmentally conscious customers. These parts reduce waste and lower energy consumption, contributing to a circular economy. Highlighting your dealership’s commitment to sustainability by promoting remanufactured parts can enhance your company’s image and attract loyal customers. Offering reliable, cost-effective solutions like remanufactured parts enhances customer trust and relationship building. Educating your customers on the benefits, including their performance and value, helps overcome hesitations, leading to repeat business and referrals. Additionally, remanufactured parts can extend the life of older forklift models, allowing your customers to maximize their investment in their existing equipment, another great selling point for remanufactured parts. When it comes to remanufactured replacement parts for forklifts, you can incorporate these elements into your dealership’s strategy, not only to increase parts sales and profitability but also to position your dealership as a trusted partner in maintaining and extending the life of your customers’ forklift fleets, ultimately enhancing their satisfaction. Looking Ahead As the material handling industry evolves, adopting circular economy practices will likely accelerate. Regulatory pressures, customer demand for sustainable solutions, and the need to reduce costs will drive further innovation and integration of these practices. Companies that embrace the circular economy will be well-positioned to lead the industry into a more sustainable and prosperous future. The rise of circular economy practices in the material handling industry represents a significant shift towards more sustainable and efficient operations. By focusing on these strategies, companies can reduce their environmental impact and unlock new opportunities for growth and customer engagement. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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Isn’t it time to differentiate equipment and parts sales?

Tue, 20 Aug 2024 05:00:40 +0000

In one of my past editions, I shared that dealers sometimes struggle to differentiate the role of an equipment sales rep and the role of a customer service sales representative. Too often, I see these positions rolled up into one function, and I believe these roles should always be separate functions and separate salespersons. Where an equipment salesperson’s objectives are the targeting and identifying of new equipment opportunities, along with quoting and selling of new/used equipment, if they are also tasked with selling service agreements, aftermarket parts, and providing service support, that could lead to not having enough focus on one function over the other. I believe having dedicated customer service sales representatives will allow your dealership to provide focused and professional aftermarket parts support, along with dedication to targeting and obtaining service agreements and upselling service repair quotes. Success as a customer service sales representative hinges on a blend of interpersonal skills, strategic sales acumen, and knowing your product and service offerings while staying abreast of industry trends. Let’s explore some of these skills and areas of focus. Develop and Nurture Customer Relationships First and foremost, building and maintaining strong relationships with customers is the foundation of success in this role. This is accomplished most effectively through frequent on-site visits to customers’ locations. These interactions foster trust and loyalty, setting a foundation for long-term partnerships. Listening actively and responding empathetically to customer needs and complaints is essential in efficiently resolving product or service issues, ensuring your customers are satisfied and expectations are met. Whether promoting service agreements or safety programs, delivering products, or handling follow-up visits on PM services, the customer service sales rep should strive to exceed customers’ expectations by providing exceptional service and support at all of your dealership’s customer experience touchpoints. When targeting new business, the initial contact with a prospective customer should be personable and professional while demonstrating genuine interest in their company. They should follow up consistently with valuable information or assistance rather than just sales pitches or spamming them with sales and product literature in their email inbox. This approach will help establish trust and demonstrate their commitment to the success of the prospective customer’s business. CRM Systems and Communication Effective communication is another cornerstone of success in this role. The ability to effectively communicate through various channels, including phone, email, and face-to-face meetings, will help them stay connected and responsive to your customer’s needs. Your customer service sales representatives must be adept in verbal and written communication as they will be tasked with preparing and presenting proposals, quote recommendations, and presenting and promoting new products and service offerings. Additionally, these customer service sales reps should display confidence and persistence in their communications, especially when it comes to new business development in cold calling prospects. This effort is vital for promoting your dealership’s services, parts, aftermarket and allied products, and rental offerings. Ask your customer service sales representatives if they know your dealership’s value proposition and if they can articulate it clearly and persuasively to convert prospects into loyal customers. CRM systems are essential for managing itineraries, call reports, prospecting activities, and maintaining accurate customer records. Keeping detailed records of customer interactions and follow-ups ensures no opportunity is missed and each customer receives proper attention. Accurate CRM management keeps customer information current and accessible, facilitating better service and follow-up. In my opinion, the effectiveness and use of your CRM systems will determine the success of your customer service sales representatives. Furthermore, working closely with your dealership’s equipment sales representatives and other departments is essential to covering the territory effectively as a customer service sales representative. This collaboration is made possible if all departments within the dealership are on the CRM and will help you provide a seamless experience for your customers, demonstrating that your dealership is a valued partner to your customers. Product and Industry knowledge Your customer service sales representatives should know or be provided the training to understand forklift maintenance and repair. This is crucial for building credibility and trust with customers and prospects. They must be prepared to answer technical questions and provide informed advice to your customers. You should provide continuous professional development for your customer service sales representatives by having them participate in OEM product training, other personal development programs, and industry training. Keeping abreast of industry trends and advancements will ensure they remain a valuable resource to your customers. Be a ‘student of the industry!’ Understanding what your competitors offer and identifying their strengths and weaknesses allows your customer service sales representative to position your dealership more effectively. As stated earlier, clearly articulating what sets your dealership apart, whether it’s superior service, competitive pricing, or comprehensive support, is essential for your customer service sales representatives, especially regarding attracting new business. To excel at your dealership, your customer service sales representatives must take a strategic approach to customer relationships, effectively use CRM systems, and collaborate seamlessly with team members and other departments. By prioritizing customer satisfaction, staying updated with industry trends, and continuously improving through professional development, you can significantly grow sales volume and establish your dealership as an indispensable partner for your customers. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment rental, and construction/earthmoving dealerships.

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Are your parts and service managers “Long-term relationship builders”?

Sat, 20 Jul 2024 05:00:02 +0000

It is hard to believe we’re already well past the first half of 2024! Time is flying, and I hope everyone is hitting their sales, customer experience, and satisfaction goals. As we progress into the latter part of the year, it’s important to take a moment to reflect on our accomplishments, reassess our strategies, and gear up for the challenges ahead. This month’s edition let’s explore the topic of managing customer expectations and how you can enhance your service delivery to stay ahead of your competition. Parts and Service Managers at your dealership are at the forefront of customer interactions and play a critical role in maintaining the efficiency and reliability of your customer’s lift truck operations. One of the key challenges they face is managing your customer’s expectations, particularly when it comes to parts, service, and other aftermarket activities. Getting this right not only ensures customer satisfaction but also strengthens your dealership’s reputation and builds long-term loyalty. In June’s edition of Material Handling Wholesaler, I discussed how the success of your dealership hinges not only on the quality of products and services you sell but also on the seamless collaboration between the different departments within your dealership. Also, siloed departments within your dealership can impede efficiency, communication, and ultimately, customer satisfaction; breaking down these silos is essential for thriving in today’s landscape within our industry. Fundamentally, the quality of the relationship you have with your customer, your grasp of their needs, and the effectiveness of your communication is vital. How your various departments interact with your customers must be perceived as genuine, dependable, and credible. Failure or reluctance to communicate to your customer, especially when for example there are delays in parts or service delivery, or there are additional costs that were not initially anticipated, can cause customer dissatisfaction and failure to meet their expectations. Here are some ways we can effectively manage these expectations. Clear Communication is Key Communication is the foundation of managing expectations. From the moment a customer contacts your dealership, they need clear, transparent information about the services and parts you offer, costs, and expected timelines. Miscommunication can certainly damage your credibility. Effective communication is essential for managing customer expectations. This begins with providing detailed quotes that are comprehensive and include all potential costs—labor, parts, and any additional fees. Transparency in quotes prevents surprises and builds trust with your customers. Additionally, drafting clear service agreements that outline the scope of work, timelines, and service levels is crucial. Ensuring your customers understand these terms before starting any work sets a solid foundation for mutual expectations. Finally, keeping your customers informed about the status of their service requests through regular updates is vital. This consistent communication helps manage expectations, especially if there are delays or additional work required. Set Realistic Expectations Setting realistic expectations is crucial. Honesty about what your team can achieve and within what timeframe will always work in your favor. Before committing to a job, assess the situation thoroughly and advise your customers on what can realistically be done, including evaluating part availability and repair timeframes. Be upfront about potential limitations or delays; if a part is backordered, inform the customer of the expected delivery time and any available alternatives. Additionally, help your customers prioritize their needs based on urgency and impact, as not all requests are equally critical. Managing this can help set realistic expectations about response times and service delivery. Building Long-Term Relationships I came across an industry colleague’s profile the other day on LinkedIn. His job title was: Long Term Relationship Builder! How clever is that! But it speaks to exactly the point here, managing customer expectations is about more than just the immediate service interaction. It’s about building long-term relationships based on trust and reliability. Satisfied customers are more likely to return and recommend your products and services to others. After completing a service job, follow up with your customers to ensure they are satisfied, demonstrating your commitment to quality and customer care. Additionally, you could implement loyalty programs that reward your repeat customers with discounts on future services or priority scheduling for urgent repairs. Finally, understand the unique needs of each customer and tailor your services accordingly, as personalized service can significantly enhance customer satisfaction and loyalty. Leverage Technology Implement customer portals that can be accessed through your company’s website where your customers can track the status of their service requests, view service history, and communicate with your team. Additionally, integrate feedback systems to gather customer input on their service experience, using this feedback to make continuous improvements and show customers that their opinions are valued. For Parts and Service Managers at your dealership, managing customer expectations is a crucial part of their role. By focusing on clear communication, setting realistic expectations, providing consistent quality, leveraging technology, and building long-term relationships, you will not only meet but exceed your customer expectations. This approach fosters trust, loyalty, and long-term success for your dealership. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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Is your dealership too busy selling hats to each other?

Mon, 20 May 2024 05:00:52 +0000

In April’s edition, I wrote about the topic of data-driven decision-making. In one instance, I discussed how most dealerships I visit live with silos of data that do not integrate with each other. The topic of data silos and departmental silos resonated with some of my industry colleagues, so I felt compelled to make it a topic for this month’s article. For your business, success hinges not only on the quality of products and services you sell but also on the seamless collaboration between the different departments within your dealership. The traditional model of siloed departments can impede efficiency, communication, and ultimately, customer satisfaction; breaking down these silos is essential for thriving in today’s landscape within our industry. I recently spoke to an industry colleague that referenced the phrase, “We’re too busy selling hats to each other” when explaining the struggles with departmental silos within their dealership. They noted this phrase came from the book, ‘Results Rule! How to Build a Culture That Blows the Competition Away,” authored by Randy G. Pennington. In the book, it is highlighted that the phrase is often used metaphorically to describe a situation where your employees are preoccupied with trivial or inconsequential matters rather than focusing on more important issues or opportunities, i.e. delivering best-in-class customer service. In essence, it suggests that instead of focusing on meaningful endeavors or addressing critical challenges, your employees are caught up in relatively unimportant tasks or pursuits, akin to metaphorically selling hats to each other, which might seem busy or active but ultimately lack substance or value. Is your business too internally focused? Are your employees and departments “too busy selling hats to each other?” When your business becomes too internally focused, it risks losing touch with the external factors that drive your relevance and innovation. This inward focus can manifest in various ways, each posing significant challenges to your dealership’s growth and competitiveness. One of the most glaring issues when your employees are too internally focused, and your various departments act independently within silos is the lack of customer-centricity. When your employees become too preoccupied with its internal operations and processes, they may lose sight of the evolving needs and preferences of your customers. This disconnect can lead to your services or once competitive advantages no longer resonating in the market, ultimately resulting in declining sales and customer dissatisfaction. Moreover, an internal focus often breeds complacency and resistance to change within the organization. When losing focus externally on things such as feedback from customers or insights from industry peers, your dealership will risk falling into a state of stagnation. This stagnation can quickly lead to obsolescence, as your competitors seize opportunities and innovate ahead. Furthermore, an internally focused dealership is likely to miss out on valuable opportunities for innovation. Innovations often arise from understanding market gaps and anticipating future needs, both of which require a keen awareness of external dynamics. By neglecting to engage with the market and monitor industry trends, you limit your ability to innovate and stay ahead of the curve. Siloed departments are usually a result of these internally focused habits in your dealership which present several challenges. Firstly, communication breakdowns frequently occur, leading to misunderstandings, service delays, and dissatisfied customers. Secondly, these departments often operate with disparate processes that do not align with your dealership’s overarching goals, resulting in redundancy, resource wastage, and decreased productivity. Additionally, the lack of cross-departmental collaboration can lead to missed opportunities for upselling, cross-selling, and delivering comprehensive solutions tailored to your customers’ needs. What are some strategies you can implement to start to break down silos within your dealership? First, look at forming cross-functional teams comprised of individuals from various departments within your dealership. This can promote collaboration and facilitate a comprehensive approach to problem-solving. Secondly, establish shared customer-centric key performance indicators and goals. This ensures alignment across all of your departments, guiding them towards common objectives. Furthermore, implement regular communication channels through formal and informal meetings, such as quick-standing hurdles. This fosters dialogue and strengthens interdepartmental relationships. Lastly, invest in training programs that emphasize cross-departmental understanding and skill development. This is crucial for breaking down barriers and cultivating more cohesiveness amongst departments across your dealership. A cohesive approach to sales, service, and support ensures a smoother experience for your customers, from initial inquiries to after-sales service. Remember to prioritize customer service! Exceptional customer service doesn’t end when the sale is made. Ensure your dealership has a dedicated customer service team equipped to handle inquiries, technical support, and service requests promptly and professionally. Also, look to foster a culture of feedback. Actively seek feedback from your customers regarding their experiences with your dealership and the aftermarket services provided. Whether through surveys, reviews, or direct communication, encourage customers to share their thoughts and suggestions for improvement. Use this feedback to identify areas of strength and areas for enhancement, demonstrating your commitment to continuous improvement and customer-centricity. I’m not saying internal processes, optimization, and employee engagement aren’t important, but they need to be balanced with an outward focus on customers, market trends, competition, and innovation. To excel against competitors, your dealership must balance internal optimization with customer service. While internal processes are crucial for efficiency, they shouldn’t overshadow the main goal: providing exceptional service to customers. Adopting an outward mindset positions your business for long-term success and ensures you remain relevant and competitive in this ever-changing industry. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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Is your dealership embracing technology?

Sat, 20 Apr 2024 05:00:29 +0000

I recently attended MODEX 2024, and this year’s show was highly anticipated by professionals across our industry. Automation, robotics, software solutions, artificial intelligence, and more were all on display providing a glimpse into the future of our industry. With connected smart automation solutions aimed at streaming supply chain operations it made me think of different areas where a lift truck dealership could streamline their operations to gain efficiencies and improve their customer experience. This led me to the topic of ERP (Enterprise Resource Planning) integrations. ERP is your business system software where business activities such as procurement, work orders, accounting, operations, etc. are performed. There is a numerous amount of ERP providers that provide their version of a dealer management platform. Additionally, there are many legacy systems out there, however, these days, many dealers are migrating to a modern dealer management platform that allows for integrations. By definition, an ERP integration allows your operation to streamline business processes, improve efficiency, and facilitate seamless communication and data exchange between different systems, ultimately leading to enhanced decision-making and the ability to adapt to external and internal changes. In last month’s edition, I wrote about the importance of ‘data-driven decision making’ where I noted that in our ever-changing industry, the ability to make informed decisions swiftly and accurately can be the difference maker in running a successful dealership and remaining competitive in the market. A modern ERP system that allows for integrations will assist your management team in decision-making about productivity and profitability. Non-integrated systems result in manual data updates, meaning that information isn’t promptly integrated into the ERP system as it arises in ‘real-time.’ Consequently, you will have to have someone within your company dedicate time to manual data transfer and uploads, resulting in wasted time. As labor resources are at a premium these days, that wasted time could be better spent on sales growth activities. There are various methods to achieve ERP integration between your platform and other systems. One of these methods is an API, or Application Programming Interface, which is a set of rules, protocols, and tools that allows different software applications to communicate with each other. In addition to API, other methods include middleware, file transfer, web services, and EDI, or Electronic Data Interchange. While this is not a programming and technical monthly column, you should be aware of these methods of integration and discuss them with your current and/or prospective ERP providers. You will also want to make sure your ERP system can integrate with your various business systems (such as CRM software) and your various suppliers. Let’s explore the benefits of ERP integrations as they relate to your parts and service departments. Parts Department Does your current platform allow for direct communication between your suppliers and your ERP system? Having the ability to connect to integrate with your suppliers will help streamline your order and procurement process with real-time, instantaneous feedback on product, pricing, and availability. Other benefits for your parts department operation include: Eliminating pricing and stock count discrepancies No need to request or manually upload new price files, tapes, etc. Ability to work on one system (your ERP system) and not have to go back and forth to the supplier portal to check product information, price, availability, etc. The ability to provide end-to-end visibility into the supply chain, from suppliers to customers, is key to your parts department being competitive in your market. Your parts department managers can track the movement of parts, monitor lead times, and identify bottlenecks or breakdowns in the supply chain. They can then proactively address any issues because they will have better visibility of supply chain performance. Another great benefit of having your ERP system integrated with your suppliers is the ability to sell products online. If you currently have an e-commerce platform or are thinking about creating an e-commerce platform to sell your products online and grow your parts counter sales, this integration will be vital to the success of setting up or updating your e-commerce site. Service Department ERP integrations can equip your service managers with real-time data that allows them to manage service technician productivity and profitability more effectively. It will also allow you to streamline processes and enable data-driven decision-making. Other benefits for your service department operation include: Many modern ERP systems offer mobile applications that allow technicians to access work orders, customer information, and inventory data from their phones or tablets while in the field. If your ERP system does not have built-in mobile applications, there are mobile applications that can integrate with many legacy ERP systems as well. Mobile accessibility will empower technicians to work more efficiently, without needing to return to the office for information or updates. Integrations can also provide your technicians with access to detailed information about customer history, equipment specifications or manuals, and equipment service history. This allows your technicians to diagnose issues more accurately, order the right parts, and complete repairs right the first time, reducing rework. If your sales department and/or other departments operate on a CRM (Customer Relationship Management) platform, an ERP integration with the CRM can lead to enhanced communications with your customers. This facilitates more personalized and effective communication, which leads to improved customer relationships and loyalty because each customer experience touchpoint that your customer has with your business is uniform. Integrating your ERP systems with other software solutions and your supplier’s systems, will eliminate data silos, reduce manual data entry and errors, streamline processes, enhance visibility into your business operations, and ultimately improve productivity for all departments within your business. You will also foster collaboration amongst your various departments, which is crucial because it promotes cross-functional communication, teamwork, and employee engagement. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets

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Data-driven decision making

Wed, 20 Mar 2024 05:00:09 +0000

One of the MHEDA’s 2024 Material Handling Business Trends states, ‘Technology is profoundly impacting the material handling industry including artificial intelligence, digital automation, data-driven decision-making, and the integration of advanced systems that optimize efficiency, productivity, and safety. Members must have a clear understanding of emerging technologies.’ Let’s dissect that statement, in particular explore the topic of ‘data-driven decision making.’ In our ever-evolving industry, the ability to make informed decisions swiftly and accurately can be the difference maker in running a successful dealership and remaining competitive in the market. Nowhere is this more apparent than in the operations of your service department. The service department is tasked with maintaining, repairing, and optimizing the end customer’s equipment to ensure the customer’s warehouses and logistics operations run smoothly. The service manager is responsible for managing the department’s productivity and profitability. Therefore, the importance of data-driven decision-making cannot be overstated. Gone are the days when service departments relied solely on intuition or past experience to address maintenance issues or plan repairs. Today, the availability of data and advanced analytics tools empowers service managers and technicians to leverage valuable insights in real-time, leading to increased efficiency, reduced downtime, and ultimately, improved customer satisfaction. However, most dealerships I visit live with silos of data that do not integrate. The cost and difficulty of properly connecting all these data sets becomes a struggle for even the largest dealerships. If you must deal with orderly silos of data, it is important to identify the purpose of each data set. Then inside of those data sets identify what things need to be managed the most. Often service managers are tasked with manually running their own data reports to analyze. In today’s fast-paced environment, waiting for managers to manually run reports can result in missed opportunities and delayed actions, meaning by the time the manager has time to run or review the report, oftentimes it is too late. Also, if the output is long lists of data or actionable items, this can be overwhelming to the service staff that already have a full day of work fielding inbound calls and everyday tasks and projects that get longer by the week. Let’s look at Work-in-Process (WIP) reports from your business system as an example. Instead of running a report that generates the entire list of current WIP, look to generate a ‘subscription’ type report model that can provide the 10 oldest work orders by open date and have it auto generated each Monday to start the week. Additionally, you could set up another subscription report to show the 10 oldest work orders by the last day of labor date posted to the work order. Essentially, your Service Manager should get this data ‘pushed’ to them automatically in subscription form and then the data-informed decision-making process makes it obvious the next 10 things to address and work on. As my industry colleague, John L. Gelsimino (President, All Lift Service, and MHEDA’s Immediate Past Chairman), says, “Call it actionable data – easy-to-digest information that allows the manager to quickly identify problems to jump in on.” He will tell you that this type of strategy can be used for any type of dealership management data. Furthermore, data-driven decision-making fosters continuous improvement and innovation within your service department. By regularly monitoring key performance indicators (KPIs) and benchmarking against industry standards, your service manager can identify areas for improvement and implement strategies to enhance efficiency and productivity. For example, if data analysis reveals that the average time taken to complete a repair is higher than industry norms, your managers can investigate the root causes of delays and implement process improvements to streamline workflows. By charting out revenue per technician in a rolling 12 format you can better determine the technician’s performances and how they are trending. Here are some other tips to optimize data-driven decision-making in your service department: Dashboard Visualization: Develop user-friendly dashboards that provide at-a-glance insights into critical performance indicators. These dashboards should be accessible to all relevant parties at your dealership, allowing them to quickly assess the status of operations and identify areas requiring attention. Predictive Analytics: Leverage advanced predictive analytics algorithms to forecast customer equipment failures and maintenance needs. By analyzing historical data and identifying patterns, these algorithms can anticipate potential issues before they arise, empowering your service department to proactively address them. Additionally, this will give you an advantage over your competition and help maintain customer loyalty. Mobile Applications: Provide service technicians with mobile applications that enable them to access relevant data and documentation on the go. This allows technicians to quickly retrieve information, input data, and communicate with your service department from the field, minimizing delays and improving responsiveness. In conclusion, data-driven decision-making is paramount in today’s landscape for forklift service departments seeking to remain competitive and efficient. By leveraging data and analytics tools, Service Managers and technicians can proactively address maintenance issues, optimize resource allocation, enhance safety, and drive continuous improvement. Ultimately, embracing a data-driven approach not only ensures the smooth operation of your customer’s equipment but also contributes to the overall success and profitability of your dealership. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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Service and part departments need to track their KPIs to achieve growth

Tue, 20 Feb 2024 06:00:00 +0000

As we are well into the first quarter of 2024, the subject of labor shortages continues to be a trend across our industry. Dealers that I talk to stress that the growth of their service and parts departments’ revenue continues to be impacted by the shortage of skilled forklift technicians. The topic of attracting, hiring, and retaining technicians continues to be a hot topic, however, in this month’s column, I will focus on another topic as it relates to service technicians, technician productivity, and efficiency. The key to your dealership’s service department’s success goes beyond the number of technicians you have and how busy they are. The question to ask is how productive and efficient they are in their work. Long hours on the clock may not be the key metric; rather, it’s their productivity that impacts your dealership’s profitability. Today, many dealerships have adopted business system software that will track and compute these metrics as they pertain to technician productivity for you, yet sometimes this this Key Performance Indicator (KPI) is neglected. Service Department Efficiency Before measuring technician productivity and setting up KPIs, your service department operations and processes must first be efficient. Running an efficient service department within your dealership requires a combination of effective management, skilled personnel, and streamlined processes. The efficiency of your service department is critical in meeting your customer demands and driving the success and revenue of the department. A crucial factor is the proficiency of the service technicians on your staff, who should be well-trained and certified to handle the diverse range of equipment they are being asked to diagnose and service. Investing in ongoing and continuing training programs will ensure your technicians are up to speed on the latest technological advancements in equipment and diagnostic tools. Additionally, having a well-organized and stocked spare parts department or service van parts inventory is an important factor for efficiency. You want to ensure that the necessary spare parts are readily available to your service technician when your customer’s equipment goes down. Be sure your parts department staff have the necessary resources to look up, procure, inventory, and deliver the right parts as needed to positively impact technician efficiency and customer satisfaction. Establish clear communication channels with your customers so your service department and technicians understand their needs and expectations. Providing regular updates on the status of repairs and offering estimated completion times helps build trust and satisfaction with your customers. Additionally, if everyone at your dealership (service dispatcher, service writer, technician, customer service sales rep, etc.) is on the same page with the customer, it will show the customer that your dealership is running a customer-centric service department. Having efficient workflow processes and effective management of work-in-process is another critical element to the efficiency of your service department. There are many business systems and field service mobile solutions today that allow for the efficient documentation of service records and collaborations between your service, sales, and parts departments that further enhance the overall performance and customer satisfaction of your dealership. If you are still asking your technicians to use paperwork orders to document their service work orders and billable hours and turn them in manually to the office, it may be time to look to invest in a modern field service mobile solution. This will also streamline your processes of converting a completed service work order to a customer invoice more efficiently. An additional benefit, as you look to attract, hire, and retain technicians, is that state-of-the-art technology is more attractive to workers for their everyday job tasks. Technician Productivity Now that you’ve streamlined processes and demonstrated your service department can run efficiently, it’s also crucial to stress the importance of productivity. Simply computed, technician productivity can be calculated by dividing their working hours by the available hours and their efficiency by how long they take to complete a service job versus the standard time estimated to complete that job. For many dealers, a normal paid working day consists of eight hours for your service technicians, which you compensate them for even if they are unable to bill out all that time to retail customer service jobs. While not all their time will always be 100% billable to your customers, your processes should maintain accountability for every paid hour to be billed out to a customer invoice, internal invoice, or general ledger (GL). These three types of hours to be billed are commonly referred to as retail hours, internal hours, and expense hours. Retail hours are hours you can bill your customer for a service job. Internal hours billed include repairs to your rental fleet, pre-delivery inspection of new equipment sales, and equipment serviced under full maintenance lease agreements. Expense hours include training hours, team meetings, and other non-billable tasks. The key here is to invest in technology and systems that can effectively account for every retail, internal, and expense hour of your technician. The forklift service industry landscape is evolving, and strategic adaptation is key to the future profitability of your dealership. Embracing change, staying up to date with technological advancements, and consistently innovating your service offerings can position your dealership as a leader in your market, while also attracting and retaining customers with opportunities for revenue growth. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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Are you embracing the electrification of forklift fleets?

Sat, 20 Jan 2024 06:00:37 +0000

This time last year, in February 2023’s edition, I asked the question, ‘who owns the end-customer and their customer experience’ when it comes to the dealership and the battery agent? Electrification in the material handling industry, electrified equipment, and fleets, continue to be business trends within our industry and into the future. According to Transparency Market Research, they estimate the global forklift battery market will reach US $43.1 billion by the end of 2031. Warehouse operations continue to grow and expand within your service areas. This expansion has of course increased the requirement for forklifts, concurrently driving an increased demand for forklift batteries, battery service, technical support, battery monitoring and battery management. The growing trend towards electric forklifts can be attributed to their environmental benefits, lower operating costs, and advancements in battery technology. As we continue to see the electrification of forklift fleets across our industry, many dealers and independent service providers have embraced this as part of their business strategy. If you are considering adding forklift battery service and maintenance to your service offering, let’s take a closer look around some of the topics surrounding this trend and how it can be a new avenue of profitability for your dealership. Sustainability More and more dealers and suppliers I talk to are adding sustainability initiatives and incorporation of Environmental, Social, and Governance (ESG) strategies into their businesses. They are also being asked by their customers on what they are doing in regard to ESG, especially as many forklift users are embracing 100% zero-emission forklifts which is being driven by their own corporate sustainability initiatives. Implementing a battery service program into your ESG strategy aligns with the broader goals of environmental responsibility, social impact, and governance excellence. By prioritizing sustainability in your operations, your dealership not only contributes to a greener future but also positions itself as a leader in the industry, attracting environmentally conscious customers and employees. This also reflects a commitment to responsible business practices and long-term value creation. An additional part of a comprehensive battery service program is the inclusion of battery reconditioning services as part of your service offering, which further emphasizes your business’s commitment to sustainability. Instead of outright replacements, reconditioning offers a cost-effective alternative that resonates well with your budget-conscious customers. It’s not just about saving money – it’s about presenting environmentally friendly options that align with the sustainability goals of many businesses as noted previously. Extending the life of forklift batteries through reconditioning conserves resources and helps minimize waste of batteries that would otherwise end up in garbage landfills. Also, this eco-friendly service offering not only mitigates environmental impact but also presents a competitive advantage for your business to further market itself with the sustainability initiative. Technicians and Technology As the complexity of forklift battery systems increases, many of your customers opt to outsource maintenance services to specialized providers. This trend is driven by the need for expertise in handling advanced battery technologies and ensuring compliance with manufacturer specifications. Therefore, investing in your service staff through training and certification programs is an investment in the success of a battery service program. Well-trained technicians equipped with the latest knowledge and skills instill confidence in your customers. Certification adds a layer of credibility, assuring your customers that their forklift battery service and management is being serviced by experts. Customers value transparency and expertise and investing in state-of-the-art diagnostic tools and technologies is a strategic move. Outfitting your technicians with these tools will not only enable your technicians to identify battery issues with precision but also showcases your commitment to provide advanced services. Incorporating fleet management software and battery monitoring systems into your service program also enhances efficiency. Real-time monitoring allows your service team to be proactive, which ensures the reduction of unexpected breakdowns for your customer. This not only adds value to your service but positions your dealership as a leader in technology, which is also good for attracting the younger generation of technicians entering the workforce. Customer Satisfaction Establishing a battery service program isn’t just about meeting a market demand – it’s about positioning your dealership for long-term success in our ever-evolving industry. Offering solutions that go beyond a conventional service department, your dealership can not only stay ahead of the competition but also become a driving force for the future of forklift battery services. Your customers prefer streamlined services, and offering forklift service alongside dedicated battery services positions your dealership as a convenient and reliable partner. A forklift battery service program is a strategic investment that can boost your service department’s profits. The increasing emphasis on sustainability and cost-effectiveness in business operations will continue to fuel the demand for extensive battery services. The ongoing shift from conventional internal combustion forklifts to their electric alternatives, driven by a commitment to sustainability and reduced carbon footprint, underscores the importance of cleaner and more energy-efficient solutions. This transformative transition has elevated the need for maintenance, reconditioning, and replacement services for forklift batteries. By aligning with this trend, your dealership can solidify its position as a comprehensive, one-stop solutions provider for customers seeking forward-thinking and environmentally conscious options. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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Elevate customer service in the parts department

Wed, 20 Dec 2023 06:00:03 +0000

Can you believe we’re already in January? Cheers to the New Year! I hope as you read this, your business and personal successes were prosperous in 2023 and you are entering the new year with enthusiasm for everything 2024 has in store. With that, let’s delve into the topic of customer service at the dealership—a subject consistently at the forefront of discussions among industry professionals. Customer service training and the overall customer experience should be paramount on your priority list as you look for ways to grow your business. Successful dealers I speak with always point to how their success in after-sales service is because they recognized and implemented a good customer service training and customer experience program. As I’ve written in the past, the competition for talent is certainly not limited to your service technician staff. The competition for parts professionals, sales staff, office personnel, and management continues to be fierce. That is why you want to be sure to stay informed about the retention, recruitment, and development of these positions. In my current role, I certainly have a focused interest on the training and development of your parts professionals. A well-functioning parts department is critical to the success of your service department and dealership overall. Whether it’s supplying replacement parts, providing technical look-up and research, or offering expert advice, the parts department plays a pivotal role in ensuring customer satisfaction. Here are some key principles to revisit, implement, and/or adopt to elevate the customer service in your parts department: Product Knowledge Exceptional customer service begins with a deep understanding of the products being offered. In the parts department, it’s a necessity. Your parts professionals should be well-versed in the intricacies of the equipment and machinery sold by your dealership, knowing the specifications and compatibility of various parts. They should also be equipped to look up, source, and procure parts from competitive equipment that you may be servicing or selling parts over the counter for. A parts professional that enhances their product knowledge can contribute more effectively to the success of the department and the organization as a whole. Training How to build this product knowledge, you ask? If you are an OEM dealer, look to take advantage of any parts training they provide to your dealership. Additionally, the Parts Professional training program put on by TVH University is a valuable training resource. Training to establish knowledge on the most common parts on truck classes I-V, training to provide an understanding of model and serial numbers for major OEMs and how to utilize parts look-up research tools are just some of the topics covered in this course. In addition, the quality customer service training portion that is intended to strengthen the sales and customer service skills of your parts professionals to deliver better customer service over the phone, email, and in person. A well-informed parts department staff is better equipped to provide excellent customer service, answer inquiries accurately, and guide customers to getting the right part. Communication Communication is key in any customer service setting. Establish clear and accessible communication channels for your customers to inquire about parts availability, pricing, and specifications. Responsive communication not only builds trust but also contributes to a positive customer experience. Whether it’s through phone lines, email, or an online portal, make it easy for customers to get the information they need. As an industry colleague once told me, “Customers are willing to wait for a part, however they cannot wait for an answer.” In our world of instant communication, availability and responsiveness are non-negotiable components of exceptional customer service. Customers expect timely responses to inquiries and concerns, whether communicated through phone calls, emails, or in-person interactions. Being accessible builds trust and demonstrates a commitment to customer satisfaction. Relationships This may sound obvious as we all know in our industry that people buy from people. However, building off of the importance of communication as a key customer service principle in the previous paragraph, you also want to make sure that your parts professionals understand that building relationships is paramount to the growth and success of the department. Build relationships beyond the transactions; get to know your customers and their unique needs. Personalizing interactions fosters a sense of loyalty and customer satisfaction. Remembering a customer’s preferences, previous purchases, or equipment specifications adds a personal touch that goes a long way in creating lasting connections. Also remember, in the world of email, text, and digital chat communications, the in-person interaction and over the phone voice interactions help build a foundation of trust and familiarity with your customer and your business. Conclusion Exceptional customer service is the linchpin that can differentiate your dealership, fostering customer loyalty, repeat business, and positive word-of-mouth referrals within the industry. Every successful interaction in the parts department not only fulfills an immediate need but contributes to the long-term success and reputation of your dealership. Elevate your customer service in the parts department, and watch it become a driving force for customer loyalty and business growth. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 18-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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Know your Key Performance Indicators in rental management

Fri, 20 Oct 2023 05:00:13 +0000

As the calendar turns to November, it’s hard to believe that it’s been over a year now since becoming a regular contributor in this Aftermarket column. In last month’s edition, I wrote about the topic of relational capital; the intangible asset that encompasses the network of relationships you build with your customers, partners, and employees. My personal relational capital has allowed me to regularly get inspiration for content to contribute to this monthly column. So, with that, this month’s inspiration came from my attendance at the recent MHEDA Rental and Used Equipment Management Conference in Chicago. The goal of the conference was not only to enhance rental and used equipment management skills, but also to increase the profitability of said departments. A common topic shared after speaker presentations and during round-table discussions was the topic of having dedicated technicians for your rental equipment. Let us further explore this topic. Many dealerships I visit tend to have a dedicated rental equipment department. The rental department managers are responsible for making the service and parts decisions for the equipment within. Many of the rental management professionals I spoke to at this conference shared the same sentiment: When it comes to managing a rental fleet, where efficiency and reliability are paramount, the role of dedicated technicians cannot be overstated. Whether your dealership rents forklifts, construction equipment, or any other type of machinery, having a team of specialists solely focused on maintaining and servicing your rental fleet can be a game-changer. Three important rental management KPIs that are related to aftermarket parts and service include: Maintenance Costs: Monitoring the expenses related to maintaining your rental fleet. Costs include technician labor, spare parts, as well as any other 3rd party maintenance costs. Regular maintenance can extend the lifespan of your equipment and reduce long-term costs. Employee Productivity: It is important to regularly measure the productivity of your staff involved in the rental process, including sales, customer service, maintenance and logistics. Downtime: Monitoring the amount of time your rental equipment is out of service due to maintenance, repairs, waiting on spare parts, and other reasons. Reducing downtime is crucial for maximizing profitability. These three KPIs (Key Performance Indicator) are why it’s recommended to have dedicated technicians servicing your rental equipment. Dedicated technicians are the heart and soul of your rental fleet maintenance. They are the ones who will know the intricacies of your equipment. By specializing in the specific make and model of forklifts or any machinery within your fleet. They can develop an intimate familiarity that extends far beyond the operator’s manual. Their expertise enables them to swiftly diagnose issues, execute efficient repairs, and minimize downtime. These specialists are the guardians of your machinery, ensuring it operates at peak performance. Consistency is a cornerstone of dedicated technician teams. With a singular focus on your rental fleet, they adhere to a standardized maintenance and inspection regimen. Every forklift, aerial work platform, or other machine receives the same meticulous care, enhancing reliability, safety, and unwavering quality assurance. Technician efficiency is a precious commodity. With dedicated technicians, you gain an edge in efficiency. These specialists are not distracted by the demands of everyday service calls with a wide array of customer owned equipment. Their undivided attention translates into quicker turnaround times for maintenance and repairs, ultimately benefiting your bottom line. Preventive maintenance is the key to cost savings and a well-run rental fleet. Dedicated technicians excel at identifying and rectifying issues before they escalate into costly problems. By proactively addressing maintenance needs, they keep downtime to a minimum and ensure that the machines in your fleet remain reliable money-making machines. Dedicated technicians create accountability and clear lines of responsibility. With a specialized team in place, it’s easier to pinpoint who is responsible for the condition of each machine. This accountability fosters a culture of excellence and ensures that your forklifts or other equipment are consistently kept in optimal working condition. These dedicated technicians also maintain meticulous records of all maintenance and repair activities for each piece of equipment in your rental fleet. This documentation is invaluable for tracking the history of each machine, adhering to maintenance schedules, and ensuring compliance with safety regulations. Dedicated technicians are the driving force behind your rental fleet’s success. Their expertise, consistency, and commitment to excellence ensure the continued reliability of your equipment and elevate your service quality. In the competitive landscape of equipment rentals, dedicated technicians are a strategic investment that propels your business towards operational excellence and customer satisfaction. By having a team of dedicated technicians responsible for servicing your rental fleet, you not only ensure the well-being of your equipment but also elevate the overall quality of service you provide to your valued customers. In the competitive world of equipment rentals, dedicated technicians are an investment that pays dividends in operational excellence. Downtime is lost time. So, look to employ dedicated technicians for your rental equipment to ensure operational efficiency, profitability, and customer satisfaction. The presence of dedicated technicians instills a sense of accountability and excellence in the management of your rental fleet, making them an indispensable asset for success. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 16-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

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