What to Evaluate in a Forklift Supplier?

Evaluating Forklift Supplier Manufacturing Control and Quality Systems

The first aspect to consider when evaluating a forklift supplier is whether they are a manufacturer or a distributor. Although both are capable of selling you trucks, there is a significant difference when issues arise, or specialized equipment beyond standard offerings is required. A supplier that retains control of manufacturing is able to control quality, lead times, and the ability to accommodate changes.

The supplier with direct manufacturing capability retains control of the raw materials, oversees manufacturing and assembly, and inspects the products. Because of their control over the entire process, accountability is vertically integrated. When there is a quality control concern, the trading company and the remote factory cannot shift the blame. Because the supplier builds the product, they are liable and able to find the root cause of the issue. The trading company is unable to take the actions required to control the concern.

Because they own the entire process, trading companies are unable to control quality. Systems are evidence of the control and discipline to defend the manufacturing. Quality control certifications are indicators of a trading company commitment to discipline in the process. Inquiries about quality at different steps of manufacturing should generate a clear and reasonable response. A reliable manufacturer will control and defend the quality of their products at each step of manufacturing. The absence of these quality control systems is evidence of neglect.

The depth of engineering capability can also be important. A supplier with their own engineering staff can directly manage the majority of their technical queries. They can also review modification requests to determine the feasibility or safety of modifications. They can also clarify their thought process on the design choices made. As your application needs more design specialties, this engineering depth becomes more valuable.

  Assessment of the Forklift Provider’s Parts Inventory and Supply Chain

 A forklift that is out of order due to parts shortages becomes a very costly liability. The costs of the downtime during a back order of a key part outweigh any savings made in the purchase costs. An assessment of a forklift supplier should entail a rigorous evaluation of their parts supply management as that will directly impact your operational uptime rather than reliance on manufacturer operational uptime.

 Parts inventory depth is a key determining factor. If a supplier has inventory stocking of the key parts, they have made a major commitment to the service of their parts inventory. They are preventing costly operational downtime that may occur due to reliance of a factory in overseas time zone in operational time. Inquire about parts fill rates, usual replacement parts and the supplier inventory. There are ways to expedite the order of non-stock items. All of these provide support for a supply priority rather than reliance on hope.

Supply chain transparency is crucial. A good supplier shows you the origins of each of the main components of a forklift, as well as the lead times of those components’ replacements. These major components include the engine, the transmission, the controller, and the hydraulic pump. A supplier that sources major forklift components from major worldwide manufacturers with their own service networks provides you with more options if a part fails. If a supplier uses [proprietary or obscure] components, you risk having a much less comfortable dependency if a part is critical and needed.

For operations that have more than one site, it is important to consider the coverage of parts distributors. A supplier that has a network of local parts depots is able to service your location much faster compared to a supplier that uses a single central location for all their products. For operations that cross various geographies, parts supplier coverage is the key to minimizing the downtimes of your trucks.

Forklift Supplier Service Infrastructure and Technical Support

The service capabilities of a supplier determine the success of their relationship with you. Every truck you purchase will require top up servicing, repairs, and replacement of parts. It is the supplier that determines whether and how quickly services are available. These are questions that need to be answered with more evidence beyond a webpage or a brochure. They require direct engagement followed up with verification.

Technician training and availability are key factors. How many service technicians does the supplier have? How are they trained? Is there an ongoing training program? A supplier that has training programs for technicians is a supplier that is serious about service. There are a lot of factors here. What are average service call response times? Is there emergency after-applied service, and if so, what is the procedure and cost to obtain it? These answers should be specific and credible.

The advancement in diagnostic capabilities has become imperative due to the sophistication of the electronic control and monitoring systems found in nearly all modern forklifts. A supplier that has the capability and confidence to use modern equipment and diagnostic tools and software to assist in the troubleshooting of more modern equipment, will ultimately be more successful than one that performs troubleshooting based on the phased and methodical method of the dispensation of parts with no control as to the end result. What is the process they employ to diagnose the models of your interest? It is safe to assume they are equipped to support the equipment if the answer is in detail.

Assessment of service records and the knowledge of the supplier matters as well. If a supplier maintains comprehensive service records, the supplier will have a record that will assist with the diagnosis of issues, the assessment and the prevention of reoccurring issues. With the aging of the fleet and employee turnover, these records become increasingly precious. A supplier that has the ability to provide a thorough history of service on a piece of equipment adds value to the second-hand equipment marketplace.

Evaluate Forklift Supplier Financial Stability and Long Term Viability

Trying to assess the financial health of a company you are considering purchasing a product from may feel a bit rude, and potentially like a deal breaker. However, the forklift needs service and parts which will require the supplier to be financially stable. Financial information of a supplier is valuable because buying a piece of equipment that will go unsupported is a lack of an information investment.

A supplier with a forklift's longevity is a sign of stability. This supplier has been through the good and the bad of the economy, the still industry, and competitors. Survival through this is evidence of stability. These suppliers continue to grow and develop, and sustainably manage their business.  The buyers of splurge products with no return and vulturistic sales will be the emergent concerns of theirs.

Financials of a supplier with good supply chain relationships is sustained. Payment for parts and supplies fosters strong relationships with manufacturers. These relationships are the priority when parts are difficult to acquire. Payment for parts and supplies fosters strong relationships with manufacturers. Supplier reputations are determined by payments and disputes for the supply of parts with the company. This is valuable information that is not listed in the financial statements.

Inquire about the supplier's future objectives. If a supplier is heavily investing in new plants, added service, and product capacity, they signal their commitment to future business. If a supplier is in a position of shrinking service, declining inventory, or simply managing to remain in business, then they signal their commitment to future business of a different nature. Customers who pay attention will see these trends.

Assess the Forklift Supplier's Field Knowledge and Application Knowledge

A Forklift supplier may be a good manufacturer and have a good stock of parts and good service, and even have a good service operation, but they still may not be a good fit for your operation. The knowledge factor is the concern. Do they appreciate the nature of your business? Have they previously dealt with businesses similar to yours? Will they understand issues which may be beyond the scope of general knowledge of a supplier?

The knowledge of application is in the questions asked. A supplier will genuinely want to know your business. For example, a supplier would want to know the type of surface the Forklift will travel on. What are the expected load and space? Will the Forklift travel in a confined space? What is the overhead clearance? Will the Forklift travel in a confined space? What is the expected utilization? A concerned supplier will ask these questions before making a recommendation.

Industry-specific references can be helpful. Request references from your industry or customers with similar problems. Make sure you contact them personally. Ask them their opinions on their supplier. Did they have problems? Were there any unanticipated issues after the purchase? Would they buy from the supplier again? No marketing materials will be as informative as their answers.

A supplier's industry experience is a good indicator of their ability to customize. Industry-specific suppliers will have options or configurations to solve frequent problems in your industry. They will be able to offer solutions that would require a custom development in a new supplier. Their experience is valuable, as it will reduce the chances of unexpected problems or issues.

Supplier References and Reputation of Forklift Supplier

All suppliers have a reputation that is built on customer feedback and experience. It takes a long time to establish a good reputation, and an industry supplier cannot build a good reputation in a short time span. To assess a supplier of forklifts, you should take the time to evaluate as many different and independent sources as possible to confirm their reputation.

Customer references provide immediate evidence of a supplier’s reputation. Request a supplier’s customer list and start making calls. Prepare your list of questions before calling, such as, how long have you used this supplier? How were the supplier’s products? How good is the supplier’s service? Are parts easy to find, and how much do they cost? What do you do when the supplier’s product breaks? The questions you didn’t ask can be just as important as the questions you do. Pauses and um’s can be just as informative as positive answers.

The supplier’s reputation and participation in their profession tell you more about their role in the industry. This can never replace reference checks, but it adds to your assessment. If you find a supplier with a minimal web presence and just a contact page, it is a sign you should be cautious of them. Suppliers showing evidence of their participation in the industry by engaging in conversations and sharing their expertise online is a positive sign.

The Better Business Bureau and association memberships do provide some evidence of a supplier, but they cannot be used to base your entire judgement. Membership in a highly trusted industry association is a positive sign. The absence of complaints with the Better Business Bureau does not mean a supplier is good. Suppliers without complaints can be new, and in the absence of complaints, their trustworthiness is in question. A supplier with a few complaints and a documented trustworthiness can be a better choice.

Huahe thoughtfully requests potential clients conduct thorough research when it comes to reputation, as reputation is earned, not bought. A strong supplier trusts their clients, and is happy to provide customer references.

Conclusion

Analyzing a supplier is much different than analyzing a forklift. A forklift is a machine that has different specs you can compare and choose the best option. A supplier is a long-term partner, and can support your operation, or make your life much harder. The categories to evaluate for a supplier are endless and extend way beyond the price and catalog.

Control over operations and quality will ascertain the effectiveness of the equipment, and will give you a good indication of how problems will be resolved later. The depth of the supply will indicate how quickly a piece of equipment can be repaired and be back operational. The cost of the supplier will give you insight into how long the supplier will be around for, and the expertise they have in the field will let you know how good their recommended equipment is. The references from clients will show if the promises of the supplier have been met.

Considering these factors when selecting a supplier can simplify operations and reduce costs, where the price of a forklift can easily be measured. The relationship with a supplier is much harder to evaluate, but far more important.