Forklift News - The spare parts industry

The impact of the internet on local, national and global business in the past decade has been enormous.
The fact that you are reading this article is evidence of that. Not only has the internet positively affected communications and multimedia, but the advent of secure, online payments means companies with an internet presence can trade 24 hours a day at no cost.
Of course the impact the information superhighway has had on materials handling, already a global business, has been phenomenal, but not more so than in the spare parts industry.
The world's biggest forklift parts companies, TVH Group, SMH Company and IMC Holdings, all have jumped on the internet bandwagon and offer online ordering for dealers and customers.
Dominiek Valcke, of TVH, said on June 3 that the total world market for forklift spares was "between EUR3.5 billion (USD4.3 billion) and EUR4 billion (USD4.9 billion)" (Forkliftaction.com News #160).
So the stakes are high, and the internet has allowed companies involved to bring their businesses into the homes and offices of decision-makers.
Kurt Marschner, founder and owner of EMC Forklift Parts Pty Ltd, a family company based in Brisbane, Queensland, Australia, said the internet was identified five years ago as a "must have" development.
"Australia is usually about three years behind Europe and the US for business trends," he said. "So it was easy to tell that the success of this new technology in those regions meant it would take off here, too."
He said it was only a matter of launching an internet presence.
"Internet usability was an instant hit with existing customers, and we have continued to expand our customer base through being online," he said.
"The world is now very much the global village. Where before we were a Brisbane company servicing local dealers and customers, now an order from Dubai is almost as common as one from Sydney."
Mr Marschner went into business in 1978 making carbon brushes for electric forklifts. Soon after, he broke into the spare parts market.
Now, 26 years later, EMC machines some metal components (shafts, wheels) and sources parts from suppliers all over the world. It has branches in every state of Australia, opened a branch in New Zealand in 2000 and last year opened a warehouse and branch in Singapore for the Asian market. Mr Marschner would not reveal the company's annual turnover.
One of EMC's Melbourne locations is set up "similar to a hardware store", allowing customers to browse through aisles of spare parts, touch the components and fill a trolley with their required items. Mr Marschner said the system had been well received, and would be replicated in other locations.
"We source parts from all over the world, and it's an art finding the right balance between quality and price," Mr Marschner said. "There are plenty of cheap parts on offer in China, but if we supply a light bulb that blows after 10 minutes, that's not good."
EMC's internet site, www.emcgateway.com, works hand in hand with the company's product catalogue, which has more than 1,600 illustrated parts across 14 sections.
Mr Marschner said the publication, which was a big expense, would never be fully replaced by the equivalent online catalogue and ordering system.
"Sometimes repairmen will inspect a forklift, flip through the catalogue on-site and make a phone call. Or, they might ask someone back at the office to make an online order," he said.
"Also, we have some customers that do all their research on the internet, and then fax their order. The internet's a great supplement to the publication, and visa versa, but I don't think it can fully replace the catalogue."
Mr Marschner said the internet age was an "exciting time" for business, and not likely to go away quickly.
"It's changed the face of our business. With the internet, there is unlimited potential for access to the world market," he said.

Discuss Forkliftaction.com News stories in the Discussion Forums!

The spare parts industry - part two