**Global operations:** Hyster-Yale Materials Handling is optimising its supply chain through closer supplier collaboration, one-piece flow systems, and advanced inventory management, while expanding modular product lines and integrating safety technologies to drive growth and efficiency in the lift truck market.
Hyster-Yale Materials Handling, Inc., a prominent manufacturer with over a century of experience in lift trucks and related equipment, has recently undertaken substantial initiatives to bolster the efficiency of its global supply chain and consolidate supplier relations. Tracy Hixson, Vice President of Global Supply Chain at Hyster-Yale, outlined these developments and the company’s strategic vision for the immediate future in an interview with Supply Chain World Magazine.
Hyster-Yale, known for its comprehensive range of lift trucks, attachments, aftermarket parts, and technology solutions marketed under the Hyster® and Yale® brands, faced considerable supply chain challenges during the global disruptions of 2020. The surge in e-commerce following pandemic-related retail closures precipitated an unprecedented demand for lift trucks, leading to significant backlogs industry-wide.
Reflecting on this period, Hixson explained, “In 2020, manufacturers and consumers all over the world were impacted by supply chain issues. Coupled with limited in-store shopping opportunities due to pandemic closures, consumers turned to e-commerce as a frequent alternative, which caused a surge in the movement of goods and increased demand for lift trucks—our core business. This trend resulted in historical lift truck bookings, which was excellent, but long-winded supply chain issues caused expansive industry-wide backlogs, one that many companies, including Hyster-Yale, have recently overcome.”
Throughout 2024, the company dedicated efforts to strengthening its supplier partnerships by fostering closer collaboration and improving communication channels. This strategic focus aimed to enhance the alignment of supply chains to ensure timely product deliveries while simultaneously reducing inventory levels previously amassed during backlog alleviation.
Building on these efforts, Hyster-Yale is now implementing a “one-piece flow” system. This innovative supply chain management approach integrates the entire value chain—tracking parts from suppliers through manufacturing facilities to customers. According to Hixson, this system “helps us optimise operations and foster greater overall efficiency. Not only does this provide us with enhanced inventory transparency, but it accounts for global supplier lead times as we source materials.”
Hixson anticipates ongoing growth in the lift truck market, projecting an expansion rate exceeding the gross domestic product. He remarked, “While the lift truck industry may not see the dramatic influx of bookings we saw a few years ago, it is expected to thrive and grow at a rate above GDP. We’re preparing to leverage growth in the market and confirm we’re as efficient as possible to maximise the opportunities we take on.”
To maintain robust supplier relations, Hyster-Yale has established a supplier advisory committee, convening their partners multiple times annually to exchange feedback and share best practices. Furthermore, the company holds monthly real-time meetings with suppliers to synchronise operations dynamically. “We are taking the time to understand our suppliers’ operations and collaborating with them to align expectations,” Hixson said.
Enhancements to the vendor-managed inventory (VMI) system have led to the adoption of an in-process Kanban-style system which eliminates the need for traditional purchase orders. This system automatically communicates demand signals to suppliers as inventory is depleted, offering comprehensive visibility from production through to point of use. Hixson stressed, “Our enhanced VMI encourages improved planning for both us and our suppliers. We can easily see what our suppliers are capable of manufacturing, and our suppliers can align production with our schedules. Additionally, we’ve added six-week firm schedules, allowing suppliers to forecast demand and better understand the usage timeframe, which is huge, and is expected to be a big efficiency contributor to our overall manufacturing operations.”
In handling local suppliers, Hyster-Yale employs a detailed collaborative approach, tailoring supply plans to individual products and ensuring readiness for high-volume parts through Kanban systems. The company’s commitment to human resources is underscored by a focus on developing talent through graduate employment programs and rotations that offer employees broad exposure to the business.
Among ongoing challenges, tariffs remain a complex variable impacting manufacturing operations. Hixson noted, “While there are certain issues with logistics, a major challenge affecting manufacturers is navigating the complicated and ever-changing realm of tariffs. We’re taking time to understand the revamped rules, but there’s still uncertainty about where these policy changes will end up. All we can do is continue to run smooth operations as we monitor the ongoing changes.” The firm has adopted a dual-sourcing strategy over recent years to mitigate risk from region-specific product delays.
On product development, Hyster-Yale is advancing modular and scalable product lines such as the Hyster® A-Series and Yale® Series N. This approach supports customised solutions that match specific customer applications and budgets. “There’s no reason for a customer in a low-intensity application to be forced to buy all the bells and whistles if they don’t need them, while a customer in a high-intensity application should be able to outfit their truck with exactly what they need to get the job done,” explained Hixson.
In response to issues like operator turnover and increased throughput demands, the company is integrating operator assist and digital sensor technologies to enhance safety and operational performance. Hixson remarked, “This type of technology can reinforce lift truck operating best practices and operator awareness, by limiting equipment performance in challenging situations, while keeping the operator in control of the lift truck, stopping forklift incidents in their tracks. This type of technology is a game changer for companies looking to increase operational safety support and overall best practices.”
Looking ahead to 2025, Hixson confirmed that investments in efficiency, safety, and technology will continue, with further consolidation of the one-piece flow system expected. He emphasised the increasing role of technology and artificial intelligence in proactive maintenance and product quality management. “As the industry continues to transform, the companies with the most efficient operations and those that are closely aligned with customers will outpace their competitors. At Hyster-Yale, we’re positioning ourselves to set a new standard, one that starts with our employees and suppliers, and will be felt by our customers.”
Hyster-Yale’s recent supply chain advancements and product innovation efforts underscore its commitment to maintaining a leadership position within the global materials handling sector.
Source: Noah Wire Services
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