Aftermarket Archives - Material Handling Wholesaler

Curiosity Is the Competitive Edge for today’s Forklift Dealers

Mon, 20 Apr 2026 05:00:00 +0000

The first quarter of the year always brings a flurry of industry activity. Conferences, trade shows, and association meetings seem to stack up back-to-back on the calendar. For many of us in the material handling world, these events provide a chance to reconnect with colleagues, see new equipment, and hear perspectives from leaders across the industry. After attending several events already this year, one theme kept resurfacing in conversations and presentations. Change is no longer something that happens occasionally in our industry. It is the constant. One speaker I listened to captured it perfectly with a simple message. Dealership leaders need to help their teams embrace change as part of everyday business and create a sense of curiosity within their organizations. For aftermarket leaders, that message carries particular weight. Parts and service departments are where many of the biggest industry changes show up first. The Aftermarket Is on the Front Line of Change When new technology enters the market, the aftermarket feels the impact immediately. Technicians have to diagnose and repair new systems. Parts departments have to understand new product categories. Service managers must support customers as they adapt to evolving equipment and operating environments. Think about how much has changed in just the last decade. Electric equipment adoption continues to grow. Battery technology is evolving. Telematics and fleet management systems are becoming more common. Diagnostic tools are increasingly software-driven. At the same time, customers expect faster service response and easier parts ordering. None of these trends is slowing down. If anything, they are accelerating. That is why embracing change is not simply a leadership slogan. It is a practical reality for every aftermarket department. Curiosity Creates Adaptability One of the most interesting ideas raised during discussions at these industry events I have recently attended was the importance of curiosity in the workplace. In many organizations, change can create resistance. People naturally gravitate toward processes and routines that feel familiar. But in an environment where technology, equipment, and customer expectations are evolving quickly, curiosity becomes a competitive advantage. Curiosity encourages employees to ask questions and explore new ideas rather than avoid them. In your aftermarket operations, curiosity might look like a technician learning how to use a new diagnostic tool or becoming more comfortable working with electric equipment. It might involve a parts manager exploring digital parts catalogs or evaluating whether online ordering could improve the customer experience. It might also mean a service manager digging into data to better understand patterns in repeat service calls or customer equipment downtime. When employees are encouraged to stay curious, change becomes less intimidating and more manageable. Training Is the Bridge Between Today and Tomorrow Of course, curiosity alone is not enough. It must be supported by ongoing training. One of the realities of our industry today is that the technical knowledge required to maintain and repair modern equipment is constantly evolving. New battery systems, new software platforms, and new diagnostic tools require technicians to keep learning throughout their careers. The same applies to other roles within the aftermarket operation. Parts personnel must stay up to date on new product lines and technology components. Service managers must understand emerging trends that impact customer operations. Sales teams must be able to communicate the value of maintenance programs, safety products, and new service offerings. Dealerships that invest in continuous training are building a stronger foundation for the future. Training improves technician confidence, increases first-time fix rates, and ultimately leads to better customer outcomes. It also helps dealerships retain employees by demonstrating the organization’s commitment to their long-term development. In an environment where skilled technicians are in high demand, that commitment matters. Preparing for an Evolving Industry Another point that surfaced during some of these industry conference discussions was the broader evolution of the dealership landscape. Across many industries, consolidation continues to reshape the competitive environment. Larger dealer groups are emerging, and customers are increasingly expecting sophisticated service capabilities and strong technical support. At the same time, equipment technology will continue to evolve. Electrification, automation, and digital fleet management are all areas that will influence how dealerships support their customers. For aftermarket leaders, this means preparing teams not just for today’s equipment but also for tomorrows. Encouraging your employees to learn new technologies, participate in training programs, and stay engaged with industry resources helps position your dealership to adapt successfully. The Role of Industry Education and Advocacy Finally, the conversation around change also highlighted the importance of education and advocacy within the material handling industry. Organizations such as MHEDA, ITA, and other industry groups play a critical role in educating the next generation of technicians and leaders. Technical training programs and equipment manufacturers all play a role in developing the workforce that supports our equipment in the field. Dealerships benefit when they actively participate in these efforts. Encouraging employees to attend training programs, supporting technician certification, and staying involved with industry groups helps strengthen the talent pipeline that the entire industry relies on. If we want the next generation of technicians and parts professionals to succeed, the industry must continue to invest in education and awareness. A Simple Challenge for Aftermarket Leaders The takeaway from this year’s conference and trade show season is clear. Change is not something that will arrive someday. It is already shaping how aftermarket departments operate. The question for dealership leaders is whether their teams are being prepared to adapt. Here is a simple challenge to consider this month. Take a moment to look around your aftermarket operation and ask a few questions. Are your technicians receiving the training they need to stay ahead of new technologies? Are your parts and service teams encouraged to explore new tools and processes that could improve the customer experience? Are you creating an environment where curiosity is welcomed rather than avoided? Dealerships that embrace change will not just survive the shifts happening in our industry. They will find new opportunities for growth along the way. The dealerships that keep learning will be the ones

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Why Customer Experience is now a Revenue Driver for Parts Departments

Tue, 17 Mar 2026 07:00:29 +0000

They say April showers bring May flowers. In the material handling world, spring conference season often brings the same result: fresh ideas taking root and new ways of thinking about how we support our customers. For years, customer experience in the parts department was defined by availability and price. If you had the part and the price was competitive, you were in a strong position to win the order. That foundation still matters, but expectations in today’s market have evolved well beyond inventory and margin. Dealers are no longer competing solely with other local providers. They are competing with the buying experiences customers encounter every day, especially the speed, transparency, and simplicity driven by Amazon-style purchasing behavior. That shift is redefining what “good service” looks like in the parts world. At a recent MHEDA networking summit, I attended a session titled The Future of Customer Experience for Material Handling Dealers. The discussion centered on how dealerships can differentiate in a crowded marketplace by leveraging technology, fleet insights, and optimized service dispatch to deliver faster, more consistent support. While much of the conversation leaned operational, the implications for parts departments were immediate and clear. Customer experience is no longer confined to the service lane. It begins the moment a parts request is placed and continues until the order is installed, invoiced, and followed up on. Response speed is the new first impression In the past, customers expected to wait for parts quotes. Today, responsiveness shapes perception before price ever enters the conversation. When a customer emails, calls, or submits an online request, they are often doing so while equipment is down. Every hour matters. A delayed acknowledgment can feel like a lack of urgency, even if the parts team is actively researching availability. Dealers that stand out treat response speed as part of the product they deliver. Quick confirmations, even without final pricing, signal professionalism and control. Letting the customer know the request is in motion, what is being checked, and when to expect an update keeps confidence high while the work happens behind the scenes. Clean order communication builds trust Accuracy has always been important in parts. What has changed is how customers expect that information to be communicated. Order confirmations that are vague, incomplete, or delayed create unnecessary anxiety. Customers want clarity around what was ordered, when it will ship, how it will arrive, and whether any items are backordered. Dealers that are improving the customer experience are tightening communication at every step. Clean confirmations, clear shipping details, and proactive clarification on partial shipments eliminate surprises. When communication is structured and consistent, customers spend less time chasing updates and more time relying on their dealer as a partner. Proactive updates matter more than reactive answers One of the strongest themes from the MHEDA session was the importance of proactive communication. Technology and fleet-visibility tools are enabling dealers to anticipate needs, but the same principle applies to parts orders already in motion. Customers should not have to call for updates. When shipments are delayed, when parts are backordered, or when delivery timing changes, proactive outreach preserves trust. Silence, even when unintentional, can be frustrating. Parts departments that lead in customer experience use automated notifications, CRM triggers, or simple manual check-ins to keep customers informed. The goal is not complexity. It is consistency. Consistency in return policies removes friction Returns are another area where customer experience often breaks down. Inconsistent policies, unclear restocking fees, or slow credit processing can create tension that outweighs the value of the original order. Customers understand that returns carry a cost. What they want is predictability. When policies are clearly communicated upfront and applied consistently, conflict decreases significantly. Dealers enhancing the parts experience are simplifying return guidelines, setting clear credit timelines, and ensuring CSRs communicate expectations before the order is finalized. Transparency at the beginning prevents frustration at the end. Technology is raising the baseline One of the more compelling takeaways from the MHEDA session was how technology is reshaping customer expectations across the dealership. Fleet insights, telematics data, and service dispatch optimization are helping dealers deliver faster onsite support. For parts departments, the parallel lies in digital ordering tools, inventory visibility, and automated communication. Customers increasingly expect real-time availability, online ordering options, and immediate confirmation of order status. Dealers do not need to replicate Amazon to compete with Amazon-style expectations. But they do need to remove friction wherever possible. Even incremental digital improvements can significantly enhance the buying experience. Customer experience is now a growth strategy The parts departments seeing the most sustained growth are not just focused on what they sell. They are focused on how customers feel during the transaction. Speed of response, clarity of communication, proactive updates, and consistent policies are no longer soft skills. They are competitive differentiators. In our industry, where many dealers have access to the same suppliers, experience becomes the deciding factor. Customers remember how easy it was to do business far longer than they remember the exact price they paid. The takeaway for dealers is straightforward. Customer experience in the parts department is no longer a support function. It is a revenue driver. Those who invest in communication, process consistency, and technology-enabled transparency will not just retain customers, they will grow with them. One additional takeaway that stood out to me from a recent conference speaker was simple but powerful: Secret shop your own parts department. Call in as a customer. Submit an online request. Send an email for a quote. Then step back and evaluate the experience. How quickly did your team respond? What was the tone on the phone? Was the communication clear and confident? How seamless did the transaction feel from start to finish? For dealership leaders and owners, this firsthand perspective can be eye-opening. It reveals gaps that reports and dashboards often miss. In today’s market, where customers compare every buying experience to the best one they have ever had, even small improvements in responsiveness, clarity, and follow-up can make a meaningful

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Price is the Excuse. Process is the Problem.

Fri, 20 Feb 2026 06:00:22 +0000

Ask most service managers why they lose jobs today, and the first answer is usually price. Labor rates are higher than ever. Parts costs continue to fluctuate, often with little warning. Travel fees are increasingly a point of customer pushback, especially as expectations for value and transparency rise. Customers feel the pressure, and dealerships feel it too. But in today’s market, price is rarely the true reason a service job is lost. More often, the decision is made long before a quote is reviewed. Service work is not disappearing. It is quietly slipping away through process gaps that erode confidence and slow decision-making. After watching dealerships navigate the aftermarket over the past year, one thing becomes clear: The dealers winning service work are not always the cheapest. They are the most consistent, the most responsive, and the clearest in how they communicate with customers. Slow response kills confidence Speed signals competence. When a customer calls in with an issue or submits a service request, they are looking for help now, not later. Customers want to know when help is coming, even if the answer is not ideal. Too many dealers wait to confirm schedules until every detail is finalized. That leaves customers in limbo, unsure whether to wait or keep searching for another provider. Dealers who consistently win service work treat the initial response as part of the service experience. A same-day acknowledgment reassures the customer that their issue is being addressed. Clear communication around next steps and timing keeps you engaged with your customer while the technical details are being worked out. Dealers that retain service work set expectations early. Providing a realistic service window, explaining parts availability, and being honest about technician schedules builds trust. Customers are far more forgiving of delays when they are disclosed upfront rather than discovered later. As an industry colleague once said to me, ‘A customer will wait for a part or a technician to arrive; however, they will not wait for an answer to their call or request’. Unclear pricing creates hesitation Customers understand that service costs money. What they struggle with is inconsistency or surprise. Travel charges that vary by technician, labor categories not clearly explained, and environmental and shop fees introduced late in the process all create friction. When pricing feels unpredictable, customers slow down and begin comparing alternatives. Dealers that reduce this friction focus on clarity rather than justification. Defined labor categories, consistent travel policies, and standard diagnostic charges explained upfront help customers understand what they are paying for. When pricing is clear and repeatable, even a higher number becomes easier to accept. Confusing quotes slow decisions A quote that feels rushed or overly technical often creates doubt. Long descriptions without clear priorities, vague scopes of work, or missing context force customers to interpret what is being proposed. That uncertainty leads to hesitation, follow-up questions, or silence. Strong service departments simplify without oversimplifying. They explain what is being repaired, why it matters, and what could happen if it is delayed. Consistent formatting and straightforward language help customers make decisions faster and with more confidence. A clear quote communicates professionalism and control. Weak follow-up and internal friction quietly cost service jobs One of the most overlooked reasons dealers lose service jobs is what happens after the initial service visit or after a quote is sent. Too often, proposals go out and then stall. No reminder. No check-in. No confirmation. From the customer’s perspective, silence can feel like disinterest or a lack of urgency, because the dealership is simply caught in internal delays. Behind the scenes, service work slows as information moves between the parts department, service writers, and technicians. Each handoff introduces lag and increases the chance of miscommunication. While your customers may never see your internal processes, they experience the outcome as slower responses and longer decision cycles. Dealers that improve job capture make follow-up a built-in part of their workflow, not an afterthought. A brief call or message within 24 to 48 hours helps maintain momentum and reinforces professionalism. At the same time, they streamline internal approvals, reduce duplicate steps, and tighten work order flow. Even small process improvements can lead to faster turnaround, clearer communication, and more service jobs won for your dealership. Dealers are not losing service jobs because customers no longer value service. They lose them because the experience does not match expectations in today’s market. Customers want fast acknowledgment, clear pricing, confident communication, and predictable scheduling. Dealers who consistently deliver these fundamentals will win more work, even as costs rise and competition tightens. Service departments do not need sweeping transformation to improve results. They need disciplined execution of the basics. The good news is that every issue outlined here is within the dealer’s control. Fix the process, and the jobs follow. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has over 20 years of experience in the equipment industry, including service, quality assurance, and business development roles. Chris now manages a national outside sales team selling replacement parts and accessories across equipment markets, including material handling, equipment rental, and construction and earthmoving dealerships.

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The Power Shift: How Battery Technology is redefining the Material Handling Aftermarket

Tue, 20 Jan 2026 06:00:06 +0000

For decades, the material handling space has leaned on lead-acid batteries to power electric forklifts. They have been reliable and well understood, forming the basis of most aftermarket conversations around watering, charging infrastructure, and replacement cycles. Today, we stand at a turning point where battery technology trends and electrification are reshaping the operational and aftermarket landscape in profound ways. The shift is not just about replacing old batteries with new ones. It is about more intelligent energy, fleet optimization, and capturing aftermarket value in a rapidly evolving market. Across the industry, demand is rising for longer run times, reduced downtime, faster charging, and more innovative ways to manage battery health and lifecycle costs. As your customer facilities embrace broader electrification goals, you, as the service providers and aftermarket partner, have a rare chance to lead with expertise, solutions, and support that go beyond the product itself. Market Forces Driving the Charge Electric forklifts have steadily gained market share, spurred by sustainability goals, operational efficiency, and shifting customer expectations. Recent industry data shows that lithium-ion technology continues to gain ground, now representing a substantial and fast-growing share of new forklift battery installations. Lithium batteries are particularly attractive for their faster charging capability, lower maintenance, and longer cycle life compared with traditional lead-acid packs. As these technologies mature, smart battery management systems are becoming part of the value proposition, helping your customers reduce downtime and extend usable life. The total forklift battery market, meanwhile, continues to grow strongly. Industry experts are estimating consistent year-over-year growth and a healthy pace to continue through the rest of the decade. That growth reflects not only fleet electrification trends but also investment in aftermarket service models such as battery-as-a-service, predictive maintenance, and other emerging service offerings. For aftermarket professionals, this expansion translates into more than just selling batteries. It is about partnering with your customers to optimize how they charge, deploy, monitor, and ultimately replace these power sources, thereby reducing the total cost of ownership and improving uptime. Lead-Acid Still Matters, With New Context Despite rising interest in lithium-ion, lead-acid remains a backbone technology in many operations. Its established supply chain, predictable performance, and lower upfront cost keep it relevant, especially in fleets that operate in single-shift environments or where legacy systems dominate. The key for your aftermarket operations is not to treat lead-acid and lithium as competing products, but as complementary tools that fit different operational profiles. Modern lead-acid service includes optimization techniques ranging from conventional charging cycles to opportunity or fast charging approaches that boost uptime without sacrificing battery health. For example, opportunity charging, when applied judiciously, can reduce the need for multiple battery sets per forklift while keeping equipment running longer. These tactics, once considered niche, are now part of the everyday vocabulary for facilities seeking incremental performance improvements. Evolving Expertise in Industrial Power Today’s battery manufacturers are blending decades of lead-acid experience with the realities of modern material handling. The best suppliers have moved beyond simply producing batteries; they are engineering complete energy solutions built around quality, flexibility, and sustainability. Most now offer a wide range of voltage options and plate designs to support the diverse equipment mix found in today’s fleets, along with compatible chargers and accessories that simplify maintenance across multiple facilities. Equally important is the consultative role these manufacturers play. As end users adopt mixed fleets and experiment with different charging strategies, having a knowledgeable partner who can help match battery types, charge profiles, and duty cycles to real-world applications has become a significant advantage. Sustainability has also become central to the industrial battery conversation. Many lead-acid batteries today are produced with high levels of recycled material. They are fully recyclable at the end of life, helping operations meet environmental goals while supporting broader electrification initiatives. A supplier I recently met with, Battery Builders Industrial (BBI), exemplifies this approach, combining long-standing expertise with a forward-looking focus on efficiency and environmental responsibility. As John Gaughan, Vice President of Sales and Marketing at BBI, puts it, “Our strength isn’t just in the range of batteries we manufacture, but in helping customers choose and apply the right technology for their operation. With so many charging strategies and equipment profiles in play, that guidance can make all the difference.” Electrification Beyond Batteries Battery trends are part of a broader shift toward electrification that encompasses everything from warehouse equipment to facility energy management. As forklifts become more electric, facilities are also investing in infrastructure upgrades, such as enhanced power delivery systems, dedicated fast-charging stations, and energy storage systems capable of supporting higher throughput. These changes often require aftermarket expertise in facility assessment, electrical design, and long-term service planning. Smart battery management systems are increasingly in demand as well. These systems provide real-time insights into the state of charge, battery health, temperature, and performance patterns. Such data supports predictive maintenance strategies that can save your customers money by avoiding unexpected failures and extending overall battery life. More than ever, your aftermarket teams need to be fluent in interpreting and acting on this data. Aftermarket Opportunities For aftermarket professionals, the current environment offers several practical opportunities: Education and advisory services: Your customers want to know not just what to buy, but how to make the best choices. Helping them map use cases to specific battery types and charging strategies builds trust and repeat business. Maintenance program development: Structured service plans for watering, equalization charging, and inspections create recurring revenue for your aftermarket operations while helping your customers extend battery life and keep their fleets running at peak performance. Battery health monitoring: Offering or integrating battery management tools enables your dealership to differentiate its service and deliver customized alerts and lifecycle recommendations to customers. Recycling and sustainability solutions: As batteries reach the end of life, guiding your customers through compliant recycling and repurposing options adds value and strengthens long-term relationships. Looking Ahead As electrification continues to redefine what material handling fleets look like, the aftermarket role becomes strategic and more technical. Batteries are no longer commodities

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“A New Year, A higher bar: How dealers can win in the 2026 Aftermarket”

Thu, 18 Dec 2025 06:00:56 +0000

Another January is here, bringing that familiar mix of optimism and reality that comes with starting a new year. Happy New Year! I hope 2025 treated you well, and that you are entering 2026 with some momentum, a few lessons learned, and a clear understanding that the real opportunities in our business still lie in the aftermarket. Industry forecasts and market data all point in the same direction. The market is growing, but the bar is rising. Customers want faster support, more transparency, and more value. Costs continue to climb; technology keeps accelerating, and talent and labor remain a challenge. Parts, service, and rental support are where all of these trends turn into real customer needs and real decisions every day at your dealership. MHEDA’s 2026 Business Trends specifically highlight several forces that matter directly to parts, service, and rental support. These include growing customer demands, tighter contracts, consolidation, and the rising use of artificial intelligence. Additionally, strategic partnerships between manufacturers and dealers are becoming increasingly important as customers demand more options, more data, and faster service. The American Rental Association projects growth again in 2026, although at a slower rate. Contractors and industrial customers continue to rely on rental to manage capital and match equipment to workload. For dealers, this means uptime and fast turns matter more than ever. The message from these sources is consistent. Growth is there, but it requires sharper execution. That puts pressure on your aftermarket operations to operate smarter and remove friction for the end customer. Let us dive into and explore actionable objectives for 2026 that you can implement in your aftermarket operations. Use data and AI to improve uptime Artificial intelligence sits high on MHEDA’s 2026 list for a reason. For dealerships, it does not start with robots or complicated software. It begins with using the data you already have to make clear improvements. Pick one data or AI use case and make it meaningful; more importantly, focus on customer outcomes rather than the technology itself. AI and data only matter when they reduce downtime, shorten repair times, or prevent repeat service calls. If a tool is not clearly improving your aftermarket performance results, adjust it. Dealers who simplify technology rather than overbuild it will gain real traction in 2026. Protect margin through clarity and consistency Customer expectations keep rising, and contract terms keep getting tighter. At the same time, labor, freight, and parts costs continue to increase, so protecting your margins requires structure and clarity. Start by publishing a clear aftermarket menu that makes it easy for customers to understand your billing structure for inspections, planned maintenance, and common repairs. Turn your most frequent jobs into repeatable packages. Build value into your contracts by offering bundles that combine PM, tire programs, inspections, and safety checks, and tie your services to uptime guarantees or response times to strengthen your position. In addition, put reman and repair options front and center, since many customers want cost control. Remanufactured components, rebuild programs, and repair choices help you meet that need while protecting your margin. A clean pricing structure and a repeatable service model give you more leverage in a market where customers shop harder and negotiate more. Strengthening talent, training MHEDA highlights workforce challenges again for 2026, and every dealer is feeling it. Recruiting is tougher, training costs more, and the talent gap continues to widen. Teams are thinner, and younger employees expect development, structure, and a sense of purpose. Start by building real career paths in parts and service, with clear training stages and pay steps for counter staff, service writers, and technicians. Crosstrain for flexibility so that at least one parts person can assist with dispatching and at least one service administrator can handle parts lookups for key accounts. Your people are your engine, and a strong talent strategy helps you support customers faster and more consistently. Align your aftermarket with a steady but slower rental market ARA’s 2026 forecast shows continued growth, although softer than in past years, and for dealerships with rental fleets or heavy rental customers, this means operating with more discipline. Treat rental as its own aftermarket segment by building inspection intervals, PM standards, and reconditioning templates designed specifically for rental units. Tighten communication between rental, service, and parts so that when a unit returns with damage, odd wear, or missing accessories, you document it and use that information to guide stocking decisions and service planning. Support your contractor customers with rental-ready service packages that help them keep their owned equipment fully prepared as they move between owning and renting. Rental customers judge you by uptime, turn times, and the condition of every machine, so make those priorities central in 2026. Strengthening partnerships with OEMs through shared data MHEDA’s trends point to the need for greater collaboration between manufacturers and distributors, as customers increasingly expect more direct access and stronger digital tools. Customers want more direct interaction with the manufacturer, more transparency, and faster access to information. OEMs are responding by building tools, portals, e-commerce options, telematics dashboards, and support channels that connect directly to end users. This does not mean your customers want to bypass your dealership entirely. It means: Customers expect modern, friction-free access to information OEMs are creating more direct digital touchpoints Dealers need to stay aligned with OEMs, so the customer gets a consistent experience Transparency, data sharing, and online access are becoming normal expectations So yes, “demand for direct consumer business” means your customers want a closer, simpler connection to the brand and their equipment data, and OEMs are stepping in to meet that expectation. This raises the bar for dealers to integrate with, collaborate with, and keep pace with those tools. Clear data and aligned goals make these relationships smoother and improve your aftermarket results. Action to Kick-off 2026 If you only apply three ideas from this article as you kick off 2026, make them these: Implement one data-driven or AI-supported process that clearly focuses on customer outcomes with the data

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What Football Taught Me About Aftermarket Leadership

Mon, 20 Oct 2025 05:00:37 +0000

Football season is here, making it the perfect time to revisit one of my favorite themes: getting back to basics. In football, even the most talented teams can struggle if they forget the fundamentals. As a youth football coach, I frequently remind my players that success begins with effective blocking and tackling. The same is true for material handling dealerships. No amount of technology or flashy new programs will compensate for a lack of strong fundamentals in your aftermarket operation. Aftermarket leaders who want to grow market share and increase revenue need to refocus their teams on the core principles that drive performance. When you strip away the noise and return to the basics, you create a clear playbook that your people can follow. That is how you build consistent results, loyal customers, and a winning culture. Here are five principles that every aftermarket leader can apply to strengthen their operation. Be Customer-Centric Everything starts with the customer. Too often, we get caught up in chasing internal metrics and forget that the goal is to solve problems for the person on the other end of the phone. Customer centricity means understanding your customers’ fleet mix, pain points, and buying habits. Great leaders encourage their teams to go beyond simply filling orders. They train their staff to ask questions, actively listen, and look for ways to add value; stock the parts their customers need most; offer delivery options that keep their equipment running and reduce downtime; and help them plan preventive maintenance to avoid costly breakdowns. When your customers feel that you are thinking about their business as much as they are, you become a trusted partner instead of just a supplier. That kind of trust is what turns one-time transactions into long-term relationships. Prioritize Technical Expertise Trust is also built through technical knowledge. Your customers depend on your team to distinguish between similar parts, troubleshoot issues, and recommend the most suitable solution. When your team is confident in their technical expertise, they solve problems more efficiently and inspire customer confidence. This means investing in training for both technicians and inside sales staff. Keep your team informed about new equipment, emerging power sources, and diagnostic technologies. Give them quick reference tools, product photos, and spec sheets to ensure first-time-right recommendations. Technical expertise reduces costly returns, shortens downtime, and reinforces your position as the go-to resource in your market. Care for Your People The best aftermarket strategies in the world will fail without engaged employees. People perform better when they know their work matters, when they feel supported, and when they see a path for growth. Caring for your people does not always require big budgets or elaborate programs. Simple actions go a long way. Recognize hard work during team meetings; share performance metrics so everyone can see progress and know where they stand; provide training that helps them grow professionally and personally. When you invest in your people, they become more invested in your customers. Encourage Entrepreneurship One of the most powerful ways to grow an aftermarket department is to empower your team to think like business owners. Allow them to explore margin opportunities, suggest stocking adjustments, and propose process improvements. Entrepreneurship in this context does not mean taking wild risks. It means encouraging initiative. If a customer has a downed truck and a part is unavailable, your team should be empowered to explore creative solutions, such as remanufactured parts, rental substitutions, or alternative sourcing. This kind of thinking captures revenue you might otherwise lose and creates memorable service moments for your customers. Foster Innovation Innovation is not just for tech companies. Every dealership can benefit from a culture that looks for better ways to serve customers. Innovation can be as simple as tweaking a process, reorganizing a stockroom, or improving communication between parts and service departments. Leaders who foster innovation create space for ideas, test them in small pilots, and measure results. Perhaps that means experimenting with same-day delivery routes, introducing a mobile quoting tool, or creating bundled service and parts programs. Innovation keeps your dealership ahead of competitors and positions you as a modern, customer-focused partner. Call to Action for Dealers Just like a football team that drills on blocking and tackling every week, your aftermarket operation needs commitment to the basics. By focusing on customer centricity, technical expertise, care for people, entrepreneurship, and innovation, you provide your team with a simple yet powerful framework for growth. The dealers that win in the next few years will be the ones who stay disciplined in these fundamentals. Technology will continue to evolve. Customer expectations will continue to rise. However, when your team executes the basics consistently, you will be ready for whatever comes next. As you examine your own aftermarket operation, ask yourself: Are we truly customer-focused, or are we just processing orders? Are we investing in technical training so our staff can solve problems confidently? Are we building a culture where people feel supported, empowered, and encouraged to innovate? Pick one of these five principles and make it your focus for the next quarter. Hold a team meeting to discuss it, set one measurable goal, and review progress together every month. Over time, you will see stronger engagement, better customer experience, and measurable revenue growth. Back to the basics is not just a slogan. It is the foundation of a successful dealership. If you commit to it, you will not just keep up with the competition. You will set the pace. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has over 19 years of experience in the equipment business, 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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Driving Efficiency Through Integration: Parts and Service as One

Sat, 20 Sep 2025 05:00:16 +0000

An often common challenge for lift truck dealerships today is the invisible wall that can form between departments. Even when everyone works hard, parts and service frequently operate as separate entities rather than as a unified aftermarket team. This siloed approach can lead to missed opportunities, inconsistent customer experiences, and inefficiencies that quietly erode the dealership’s profitability. A better way forward is to view the aftermarket not as two or three independent profit centers, but as a single, unified business unit. When parts, service, and related product sales operate under shared strategies for inventory, pricing, and customer communication, the result is a more efficient operation and a stronger competitive position. The Cost of Operating in Silos When your aftermarket departments run in isolation, the problems compound over time: A service job may include parts priced at list, while the same parts could be purchased at a discounted rate over the counter. The parts department may stock inventory based solely on historical sales, without considering the service pipeline. Technicians may notice upcoming maintenance needs in the field, but that insight often fails to reach the parts team for a proactive sale. These situations not only create inefficiency internally, but they can also leave your customers confused about pricing, availability, and service options. One Inventory Plan, Multiple Benefits A unified aftermarket strategy begins with one coordinated inventory plan. Rather than each department making stocking decisions in isolation, your dealership should consider the whole picture—service demand based on upcoming repairs and PM schedules, counter and online sales trends for quick-turn items, and seasonal patterns that influence both repair and retail needs. This approach ensures high-demand parts are available where and when they are needed, reduces duplication of slow-moving stock, and makes better use of capital tied up in inventory. Unified planning also creates opportunities for coordinated sales efforts. For example, a seasonal maintenance program can bundle labor, consumables, and replacement parts into a single, straightforward package for your customer. When pricing, timing, and messaging remain consistent across service calls, counter sales, and marketing materials, the result is a seamless buying experience that feels intentional and professional. Shared Customer Intelligence Every customer interaction contains valuable information. Suppose a technician determines that a customer’s machine will require new tires or a mast chain in six months; that data should be immediately flagged for the parts team. Similarly, if a parts salesperson notices a pattern that suggests a fleet is aging, the service department can offer inspections or PM work. When these insights flow freely between teams, your dealership can act proactively instead of reactively, which strengthens customer loyalty and boosts revenue. Consistent Pricing Builds Trust Disparate pricing policies can undermine both margins and trust. Aligning pricing strategies across parts, service, and online sales creates consistency and reinforces the value proposition. This does not mean eliminating flexibility, but rather ensuring that discounts, premiums, and bundled offers follow the same logic across every customer touchpoint. Consistency also provides an opportunity to communicate the “why” behind pricing, such as the investment in technician training, warranty coverage, and guaranteed uptime, so your customers see the full value they are getting. Managing Inventory for Cash Flow and Service Quality Better coordination in inventory management can significantly improve cash flow without sacrificing service quality. This involves identifying and reducing dead stock through regular reviews, prioritizing high-demand and high-margin parts that drive profitability, and utilizing centralized distribution when feasible, allowing multiple branches to share slow-moving items instead of duplicating them. The ultimate goal is to ensure every dollar invested in inventory contributes to faster service or increased sales. Change is the Hardest Part Unifying aftermarket operations requires more than updated reports and processes; it demands a cultural shift. Your managers and staff must see themselves as part of the same team, working toward shared goals. Building this culture means cross-training staff so parts personnel understand service workflows and service managers understand inventory strategy, holding joint department meetings to align on promotions, customer priorities, and stocking needs, and sharing key performance indicators such as fill rate, average invoice value, and work order closeout time so everyone sees the impact of their work on the overall operation. While it may feel uncomfortable at first to open decision-making and share metrics, the payoff is stronger collaboration, better performance, and higher customer satisfaction. This cultural alignment is critical as the aftermarket environment continues to evolve. Customers are keeping equipment longer, online competitors are becoming more aggressive, and technician shortages are putting pressure on service capacity. A siloed operation will struggle to adapt to these shifts. Still, a unified aftermarket team can respond more quickly, maintain a consistent message to customers, and capture greater value from every interaction. Call to Action for Dealership Leaders To start moving toward a unified aftermarket model, your dealership leaders can: Identify communication gaps where customers are receiving mixed messages. Develop a unified inventory plan that encompasses service, counter, and online demand. Set shared revenue and margin goals for both parts and service. Track and celebrate wins together when collaboration leads to improved results. The strongest dealerships will be the ones that remove the barriers between parts and service, align their strategies, and operate as a single, customer-focused aftermarket team. By doing so, they will not only improve efficiency and profitability but also strengthen relationships with customers in their markets. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has over 19 years of experience in the equipment business, 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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You’ve Streamlined Repairs—Now It’s Time to Streamline Invoicing

Wed, 20 Aug 2025 05:00:10 +0000

Most forklift dealerships today have leaped into mobile field service tools. Technicians are equipped with tablets, job notes are submitted digitally, and time and parts usage are logged in real time. It’s a huge step forward from the paper-driven chaos we used to live in. But here’s the real question: If we’ve gone digital, why does it still take too long to bill the customer? The truth is, many of the delays that once plagued the billing cycle haven’t disappeared; they’ve just become more visible. We no longer wait on handwritten work orders or physical timecards, but we’re still seeing work orders sit open for days, sometimes weeks, after the job is complete. The tools are better, but process discipline and accountability are still what separate average service departments from high-performing service departments. The Job Isn’t Done Until the Invoice Is Sent In your dealership’s service department, doing the work is only half the equation. The real success comes from turning that work into revenue, quickly. Every hour a completed work order sits unbilled is a lost opportunity. It affects cash flow, margins, parts reinvestment, and even technician utilization. In other words, your dealership doesn’t make a profit until the paperwork is finished and the cash is collected. We’ve optimized how we diagnose and fix trucks. Now it’s time to maximize our invoice and collection processes. Because if a job is completed on Monday and isn’t billed until next week, you’re not running at full speed, no matter how good your technician’s repair work was. Paperless Tech Can’t Fix Broken Follow-Through Going digital should eliminate paperwork delays, but it doesn’t always eliminate workflow breakdowns. Even with tablets in hand, jobs still get stuck in the system. Why? Jobs get stuck for a variety of reasons: technicians may not enter job notes right away; Customer PO numbers might not have been collected at the time of dispatch; parts are sometimes added after the fact and need re-approval; warranty information may be missing or unclear; the service manager’s review queue can become backlogged; and the billing team may be waiting on clarification before they can finalize the invoice. These aren’t system problems. They’re execution gaps. And until your teams start treating the end of the job, billing, and collection, with the same urgency they give to the initial repair, you’re always going to have money stuck in limbo. One of the most important things your dealership can do is clearly define who owns each step in the billing process. Everyone plays a role in the process: technicians must enter job notes and flag issues on time; parts and service coordinators are responsible for ensuring all charges are properly captured; service managers need to review and approve work promptly; team members that are tasked with finalizing and sending the invoice; and accounts receivable teams follow up to ensure timely collection. When everyone owns their part of the billing process, the process flows. When no one owns it, revenue sits idle. How to Improve Billing-to-Cash Performance Improving your billing-to-cash cycle doesn’t require a major system overhaul; it just needs a sharper focus on follow-through, accountability, and visibility into the right metrics. Start by setting clear internal expectations. For example, establish service-level targets such as invoicing every completed job within 48 hours. This gives your team a measurable standard and prevents work orders from sitting idle. From there, track how many work orders are aging, specifically those open for more than three to five days, and drill into the reasons behind the delays. Whether it’s missing job notes, parts waiting for approval, or warranty hold-ups, these slowdowns directly impact cash flow and should be reviewed regularly. Invoice accuracy is another key area that often gets overlooked. Invoices that require corrections or are missing charges only delay the process further. Consider conducting a weekly audit to catch recurring issues like unbilled labor, travel, or miscoded parts. As you dig into the data, patterns will emerge, whether it’s a specific technician, a branch location, or even a certain customer type. Identifying those trends allows you to fix what’s fixable before it becomes a recurring cash flow problem. And don’t underestimate the power of recognition. In many service departments, the focus is strictly on billed hours and service call volume, but billing speed matters just as much. Acknowledge and reward the teams or individuals who consistently invoice quickly and accurately. Time is money, and how fast you get from repair to revenue should be part of your success metrics. To keep your progress on track, monitor KPIs like average days to invoice, the number of open work orders aged more than five days, and your invoice accuracy rate. Track the percentage of jobs billed within the same week they’re completed and keep a close eye on DSO (Days Sales Outstanding) for service invoices. Lastly, be sure to monitor the warranty claim cycle time, which can quietly erode cash flow if left unmanaged. When these performance indicators are tracked regularly and paired with clear ownership and process discipline, you turn your service department into a true profit center, not just a cost recovery unit. The result isn’t just faster billing. It’s better margins, more substantial cash flow, and a more accountable aftermarket team. Questions to Bring to Your Next Service Meeting To turn strategy into action, start with a few simple questions at your next service meeting. How many open work orders are currently aging, and what’s causing the delay? What is your average turnaround time from job completion to invoice? Are you consistently capturing all parts, labor, and travel charges before the invoice goes out? When jobs get stuck, who’s accountable for moving them forward? And finally, what’s one process change your team could make this month to speed things up? These aren’t finger-pointing questions; they’re team alignment questions. Everyone plays a role in turning completed work into collected revenue. It’s easy to focus on field performance metrics like wrench time, call volume, and first-time fix rate.

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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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