COMPREHENSIVE AFTERMARKET SERVICES

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1 FOR COMPREHENSIVE AFTERMARKET SERVICES PEERLESS CONTENT CREATION

2 GAINING COMPREHENSIVE VISIBILITY AFTERMARKET INTO YOUR WORKFORCE SERVICES Service After the Sale: Looking Beyond Acquisition Costs Why today s fleet managers need a robust, OEM-supported aftermarket services approach to forklift maintenance. MAINTAINING A FORKLIFT FLEET shouldn t be a juggling act, but without the right balance of equipment uptime, output, safety, and maintenance, that s exactly what it can turn into. Despite what some fleet managers may assume, forklift investments don t end when the purchase agreement or lease is signed and the equipment is put into service. They extend out into the warehouse, DC, and plant, where regular maintenance, upkeep, and repair converge Whenever you have an emergency, you also have truck downtime to contend with. When you have downtime, you have decreased productivity and increased costs. Megan McGriff, assistant manager, parts marketing, sales, and promotions for Toyota Material Handling, U.S.A. (TMHU) to ensure the lowest total cost of ownership (TCO) for these critical material handling machines. Along with struggling to keep their forklifts efficiently maintained, companies also grapple with issues like equipment manufacturers that go out of business, those that don t provide comprehensive maintenance programs, and those whose vehicles simply don t withstand the test of time or deliver on their early promises. Untenable in today s high-velocity, multi-channel distribution environment, these issues can severely hamper a company s ability to run smoothly, service its customers, and stay competitive. All it takes is one mechanical shutdown to create a bottleneck on the DC floor a bottleneck that not only hampers productivity but that also results in high repair costs. Whenever you have an emergency, you also have truck downtime to contend with, says Megan McGriff, assistant manager, parts marketing, sales, and promotions for Toyota Material Handling, U.S.A. (TMHU). When you have downtime, you have decreased productivity and increased costs. By incorporating a planned maintenance guarantee and a more extensive extended care plan into the forklift acquisition process, companies can avoid these traps and keep their fleets running in a very efficient and affordable manner. Add product assurance and/or warranty options to the equation and you get a comprehensive aftermarket package that keeps operational emergencies to a minimum while helping to improve employee safety in a highly-productive environment. By definition, aftermarket services encompass the maintenance and running of a forklift after it has been acquired. As such, anything that comes into play during that period servicing, maintenance, repair, reducing downtime, ensuring safe performance of the forklift will all fall under the aftermarket umbrella. Beginning from the point where the truck is delivered and put into operation, says Bret Bruin, TMHU s director of aftermarket services, aftermarket includes all of the maintenance and repair, the disposal of the truck when it comes off lease, and the steps involved with trading or selling the truck. 2 TOYOTA: Comprehensive Aftermarket Services toyota.com

3 For many fleet managers, the question becomes: Do I attempt to service this equipment myself, do I outsource it to a third party, or do I work with the original provider s aftermarket service plan? Many times, companies either take the DIY or self-service approach. Others hire non-oem service companies to manage repairs and maintenance on a one-off basis, never really knowing how much money they re investing, time they re wasting, and productivity they re losing as a result. By not working with a manufacturer-certified technician, for instance, companies miss out on the chance to get their equipment repaired in the most effective and efficient manner possible using OEM parts. For example, companies that decide to service the units themselves nearly always run into challenges finding trained technicians a problem exacerbated by the fact that the average forklift technician is now 50+ years old and either at or nearing retirement. Poor visibility into total operating costs for the vehicles is another stumbling block, with many companies looking solely at acquisition costs when making their forklift Beginning from the point where the truck is delivered and put into operation, aftermarket includes all of the maintenance and repair, the disposal of the truck when it comes off lease, and the steps involved with trading or selling the truck. Bret Bruin, TMHU s director of aftermarket services purchases. In reality, the maintenance associated with keeping those vehicles running at optimal levels for the next three, five, or seven years must also be factored into the equation. The maintenance and upkeep of a unit is actually a much bigger financial investment than just the acquisition cost, yet a lot of companies don t know how many forklifts they have or what the costs are to operate those vehicles, says Bruin. Perhaps even more importantly, the same companies don t pay attention to the operator behaviors that impact the safety and/or the cost of their fleets. When companies jump at the chance to decrease their costs by using another service provider or by trying it DIY, McGriff explains, they wind up getting hurt in the long run because the techs they re working with lack the specific technical know-how to service the forklifts as well as the specific OEM can. In this Making the Case supplement, we explore the use of comprehensive aftermarket services for forklifts, show programs like Toyota 360 Support work, and reveal the return on investment (ROI) that comes from working with a manufacturer like Toyota to create a program that meets your company s specific needs. TOYOTA: Comprehensive Aftermarket Services toyota.com 3

4 GAINING COMPREHENSIVE VISIBILITY AFTERMARKET INTO YOUR WORKFORCE SERVICES Aftermarket Services Shouldn t be an Afterthought By leveraging comprehensive aftermarket services, firms can readily adopt a proactive stance and begin tapping into otherwise-overlooked opportunities for improvement. FLEET MANAGERS CAN NO LONGER OVERLOOK AFTERMARKET SERVICES, nor can they wait until a major interruption happens to spring into action. And while many companies still attempt to handle the problems internally or call on a third-party for help, smart fleet managers are factoring the total cost of ownership (TCO) on their forklift investments and turning to their vendors comprehensive aftermarket service programs instead. 4 TOYOTA: Comprehensive Aftermarket Services toyota.com

5 Through offerings like Toyota 360 Support, those fleet managers get the benefits of: Toyota Certified Technicians Rigorously trained experts in Toyota forklifts. Toyota Genuine Parts The parts the forklifts were built with and the Toyota techs were trained with. 4-Hour Guaranteed Service Request Response Time Never be in the dark about the status of a maintenance need. Two-year Labor Warranty If you get it fixed, it stays that way. Toyota Standard and Extra Care Warranty To ensure longer protection against maintenance costs. Optional T-Matics Support Data insight into the forklift fleet. The Toyota Service App Submit service requests quickly. Bret Bruin, TMHU s director of aftermarket services, says a true aftermarket service program starts with understanding the customer, its operations, and its individual service and maintenance needs. There s no one-sizefits-all solution; our dealers are trained to understand specific industry segments and customer applications, says Bruin. Then, they design a maintenance program for that specific customer. For example, if TMHU determines that a forklift needs to be maintained every 500 hours, one of its certified dealer technicians will be onsite at those intervals, enhancing that vehicle s uptime. During that process, the dealer will also help identify We call them our heroes; they are the Tom Brady and the Lebron James of our teams. They re on the front line with our customers, serving them on a daily basis, establishing a high level of trust with them, and taking care of their fleets. Bret Bruin, TMHU s director of aftermarket services potential safety-related operational issues and effectively address issues before they happen. It s all about safety and keeping the truck up and running, says Bruin, who adds that TMHU s commitment to stocking service parts provides an extra layer of assurance for fleet managers. Our parts availability is over 98%, so we fill 98%+ of the incoming parts orders, every day. HOMETOWN HEROES As one of the most important elements of any comprehensive aftermarket services programs, qualified technicians play a key role in keeping companies forklift fleets running at optimal rates and for the lowest TCO. Through the Toyota 360 Support network, these technicians work for dealers and are regarded as true solution providers that: Can be the touchpoint for dealer resources when customers look to enhance efficiencies Are trained in factory certified programs Come to your location equipped with the correct tools to get your forklift up and running on the first visit Are employed by 66 different dealers with over 225 locations Populate a group of more than 3,500 on-call technicians Have more than 2,600 service vans on the road We call them our heroes; they are the Tom Brady and the Lebron James of our teams, says Bruin. They re on the front line with our customers, serving them on a daily basis, establishing a high level of trust with them, and taking care of their fleets. Using the Toyota 360 mobile app, customers can instantly connect to a certified technician who guarantees 4-hour emergency response times (and what gets fixed stays fixed, with a 2-year warranty on all Genuine parts and labor). At every dealer location, a team of customer service and sales representatives (CSSRs) is responsible for customer commitment. The technician does the heavy lifting, and the CSSRs ensure that all repairs were done correctly, completed on time, and TOYOTA: Comprehensive Aftermarket Services toyota.com 5

6 billed properly. The CSSRs are also trained on the Toyota Production System (i.e., lean manufacturing management), and are resources for customers looking to improve safety, enhance efficiencies, and remove any waste from their organizations by using lean management. This is unique to Toyota, says Bruin. No other forklift or material handling provider has the Toyota Production System and our culture of continuous improvement, which is taught organization-wide. Impact Alerts Be alerted immediately if any of your forklifts receive an impact. Operator Limits Set permissions to ensure forklift is being used only by certified operators. Bruin says the data generated by forklift telematics is helping companies work smarter in today s high-velocity distribution environment, where split decisions can mean the difference between a smooth-running operation and one where delays and bottlenecks can quickly turn into When your truck talks to you and tells you what s wrong or what it needs, it gives you the opportunity to quickly address any issues and ward off potential problems. With this information in hand, we can readily provide accurate recommendations on how a user should manage its fleet. Bret Bruin, TMHU s director of aftermarket services PREVENTING PROBLEMS IN THE FIRST PLACE WITH TELEMATICS As more and more technology is integrated into the modern-day forklift, the use of telematics software that provides a 24/7 window into the operation and condition of a forklift is growing among fleets. With this data in hand, companies can run a smoother and more efficient operation that s focused less on fighting a rising tide of problems and more on preventing them in the first place. Whether a forklift fleet is made up of a single truck or 100 trucks, Toyota s T-Matics solution provides data and information for fleet managers to use when evaluating whether their fleet is being utilized as smartly and efficiently as possible. Fleet managers receive real-time, actionable data that helps them make the smart calls on safety and training, maintenance schedules, and other operational concerns that directly impact their companies. Some of the most important metrics include: Forklift Fleet Tracking Gain a window into your fleet at all times. Electronic Safety List Mandate automated operator checklists before use, which eliminates paper and improves accountability and safety. Maintenance Tracking Receive timely notifications on planned maintenance needs and link directly to your dealership for time- sensitive service intervals. Web-based Reporting Generate benchmarks and report results daily, weekly, quarterly and/ or yearly, which help you make more informed, data-based decisions. customer service problems. When your truck talks to you and tells you what s wrong or what it needs, it gives you the opportunity to quickly address any issues and ward off potential problems, says Bruin. With this information in hand, we can readily provide accurate recommendations on how a user should manage its fleet. READY FOR A MORALE BOOST? A good aftermarket service program encompasses more than just handling maintenance and repairs on a scheduled basis; it s also about the accompanying warranty on the vehicle, the parts, and the services. TMHU, for example, pairs the first year of planned maintenance with an extended care plan, and all at an extremely competitive price. We make sure customers have guarantees in place to help them feel comfortable and secure, says Megan McGriff, assistant manager parts marketing, sales, and promotions for TMHU. We want them to know the service is worthwhile leading up to their decision to invest in Toyota 360, and we deliver on our promises. In return for their investment, companies get tangible benefits like improved safety, better service, and improved uptime benefits as a result of using OEM parts. They also get peace of mind, higher productivity rates, and improved employee morale. You d be surprised at how morale goes through the roof, says McGriff, when you no longer have employees sitting around, waiting for their forklifts to be repaired. 6 TOYOTA: Comprehensive Aftermarket Services toyota.com

7 FOR Comprehensive Aftermarket Services What s the ROI for fleet managers, CFOs, and CEOs? THE CASE FOR THE FLEET MANAGER: The negative impacts of forklift downtime, service calls, and failed parts can create major headaches for operators and fleet managers who need reliable material handling equipment in their warehouses, DCs, docks, and yards. Focused on ROI metrics like vehicle uptime, cost-per-hour, and forklift utilization, fleet managers that leverage comprehensive aftermarket services, a planned maintenance guarantee, and an extensive extended care plan into their forklift acquisition strategies gain significant, tangible ROI.. If a fleet manager doesn t have a maintenance plan or an additional, extended care plan, then the ownership costs are uncertain, says Megan McGriff, TMHU s assistant manager parts marketing, sales, and promotions. For example, just one major repair to a forklift could disrupt your budget. With a comprehensive aftermarket services package, however, the likelihood of expensive repairs goes away, and allows companies to save money and reduce total cost of ownership (TCO) over time. Because you re maintaining the forklift as you go along, and not just addressing issues as they surface, says McGriff, you more readily see good ROI in the form of better vehicle uptime, lower cost-per-hour, and improved utilization. Because you re maintaining the forklift as you go along, and not just addressing issues as they surface, you more readily see good ROI in the form of better vehicle uptime, lower cost-per-hour, and improved utilization. Megan McGriff, assistant manager, parts marketing, sales, and promotions for Toyota Material Handling, U.S.A. (TMHU) TOYOTA: Comprehensive Aftermarket Services toyota.com 7

8 THE CASE FOR THE CFO: Tasked with making the initial forklift investment, CFOs will ultimately see the cost of constantly replacing parts, having to make service calls, and repairing vehicles that are no longer under warranty. They re also uniquely positioned to see the financial impact of a comprehensive aftermarket service approach. Because Toyota 360 Support Plus is offered at an extremely competitive price, the upfront financial risks associated with the aftermarket services plan are significantly reduced. We offer the peace of mind associated with maintaining your critical material handling equipment, says McGriff, and lessen the worry over how to cover those costly repairs that could come up. Recently, when working with a major transportation company, Bret Bruin, TMHU s director of aftermarket services, says the company s CFO was focused on two key metrics: cost per hour to operate the unit and vehicle uptime. With the help of Toyota s comprehensive aftermarket services program, that company boasts a 97.7% uptime (with some of the 2.3% downtime allocated to regular maintenance) across its fleet of 5,000 forklifts. That s a great uptime rate for a company that operates around the clock, says Bruin, noting that for CFOs, the most valuable ROI comes in the form of low equipment downtime (and associated costs). When there s an end customer relying on you to have a forklift to move the product around and get that product to them, McGriff adds, at the end of the day, if that forklift is down, then you are losing money and potentially even losing customers by not being able to meet their expectations and needs. 8 TOYOTA: Comprehensive Aftermarket Services toyota.com

9 THE CASE FOR THE COO: Responsible for ensuring that their business operations produce rising key performance indicators (KPIs), COOs want their operations to run smoothly without having to worry about the everyday management of forklifts. In fact, when they do have to deal with forklifts, COOs aren t happy about having to get that deep into the day-to-day management of those machines often across dozens or even hundreds of locations worldwide. They want a fleet that just works so they can worry about what their company is good at, says Bruin. Toyota 360 helps make that a reality with its comprehensive aftermarket services solution. With its 4-hour (or less) response time, for example, TMHU s dealer network is onsite and working quickly to get repairs or regular maintenance handled promptly. In fact, there are over 3500 Toyota Certified Technicians single consolidated invoice to HQ each month. We look at every single repair invoice to ensure that the work is done within a reasonable and standardized repair time for these large companies, Bruin explains. We scrub every invoice to make sure customers get consistent labor hours and parts pricing. For all customers, Toyota is dedicated to making sure technicians are as minimally-invasive as backed by 2-year parts warranty that includes labor. Bruin says Toyota is dedicated to their clients both small and large. For smaller companies, the Toyota 360 Support promise comes with focused attention from their certified Toyota dealer to make sure that response times are maintained and that customers are as comfortable with their material handling equipment as possible. For companies with larger fleets, Toyota can track maintenance and repairs across their equipment and locations, delivering a possible. We strive to make sure that everything is fixed right the first time. Finally, Toyota s T-Matics solution provides real-time data to fleet managers so they can determine whether the forklift fleet is being used as smartly and efficiently as possible via vehicle management software (T-Matics) that provides a 24/7 window into the vehicle s operation and condition. We re able to give customers very detailed insights, Bruin says, right down to the operator behavior level. TOYOTA: Comprehensive Aftermarket Services toyota.com 9

10 Let the Certified Technicians Handle the Heavy Lifting YOU WOULDN T TRUST YOUR CAR to an inexperienced mechanic, nor would you allow an unlicensed contractor to work on your home. Yet companies still attempt to service and maintain their forklifts inhouse or, allow untested, non-certified outside technicians to repair their vital material handling equipment. These approaches are not only costly and time-consuming, but they are also unsafe and unpredictable. Where it may seem like a benefit to self-service and save money upfront, says Megan McGriff, assistant manager parts marketing, sales, and promotions for TMHU. In reality, your employees should be focused on strengthening your firm s position in the marketplace not fixing and maintaining forklifts. 10 TOYOTA: Comprehensive Aftermarket Services toyota.com

11 When it s time for repair or service, utilizing a comprehensive aftermarket services solution that includes a service request mobile app (for making automatic service requests without the need for phone calls) and Toyota 360 Support s pool of certified technicians can be a big win for most operations. All of our dealers guarantee a 4-hour emergency response time, says McGriff, so you know that help is going to be there and be there quickly when you need it. Through Toyota 360 Support, companies also get a 2-year warranty on parts and a labor guarantee, as long as those parts are replaced by a Toyota-certified technician. These are just a few of the many benefits of working with Toyota, a company that prides itself on its lean operational practices and culture of continuous improvement. And if you re still not convinced, Bret Bruin, TMHU s director of aftermarket services, encourages you to come and see for yourself. Come for a visit at one of our customer sites or dealerships to see our program in action, and then do some competitive shopping around, says Bruin. You ll see a significant difference in the way our aftermarket programs work and how much value they add for our customers. TOYOTA: Comprehensive Aftermarket Services toyota.com 11

12 TO FIND OUT MORE ABOUT WHAT TOYOTA CAN DO, VISIT CUSTOMER SUPPORT: TOYOTA: Comprehensive Aftermarket Services toyota.com