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JIT approach stockpiles savings, not forklifts

Supplier: Flexilift Australia
11 January, 2010

A business decision made by Hyundai Forklifts Australia to operate a Just in Time (JIT) delivery system is now paying dividends to the market.

With the Australian dollar strong against the Greenback, forklift companies that carry stockpiles of new equipment are being hardest hit.

This is particularly the case if these stockpiles were acquired at times when the exchange rate was less kind over the last 12-24 months.

To the official Hyundai Forklifts Australia agent, Flexilift Australia, this is good  news in such a competitive market.

"By deliberately choosing not to stockpile Hyundai forklifts and instead deliver them on a JIT basis, our customers are winning," said National Business Development Manager for Flexilift, Mr John Fisher.

"This is because the exchange rate in the past few months between the Australian and American dollars is so favourable compared to what it has been generally in the last two years.

"Companies that have been stockpiling are likely to have purchased vehicles some time ago when the exchange rate was tougher on the Australian dollar, potentially putting a squeeze on their margins to possibly impact on the sale price.

"But with out JIT approach, now that the exchange rate is much better we have committed to passing on the savings to the customer because our profit margins remain the same.

"This equates to thousands of dollars in real savings to industry purchasing Hyundai forklifts.

"When investing in capital equipment, most companies don’t make a sudden decision; rather, they plan ahead to some extent and a six-week delivery turnaround fits well into a schedule.

"For the short delay of bringing into the country a new forklift, clients can benefit hugely on the purchase price, saving about 15-20%.

"To back up our price commitment with attention to quality, Hyundai Forklifts Australia also provides a three year warranty through our distributor network.

"Traditionally, the forklift sector has argued that it is near impossible to provide quality and service without forsaking price advantages –normally we are told to expect only two of the three.

"Yet a JIT approach has given us a price advantage against most of the competition which has large stockpiles of vehicles, so we actually can offer the Big 3!

"Industry is also still mindful that until December 31, 2009 the Federal Government remains active, so further savings are possible.

"If our currency continues to strengthen against the US$ we will pass on all the savings perpetually. If the exchange rate returns to the same level it was about two years ago, we still believe we can cap our price at the most competitive level in the country."

Apart from being responsible for Hyundai forklifts, Flexilift is also the distributor for Sellick rough terrain lift trucks as well as the Flexi brand of articulated narrow aisle vehicles.

Its association with Hyundai has seen Flexilift expand rapidly by taking on board carefully chosen regional distributors in all parts of Australia. The company is still looking to talk to interested parties in the areas of Brisbane, Sydney and industrial areas of coastal Queensland.