**Global operations:** Hyster-Yale is enhancing supply chain efficiency and supplier collaboration with new strategies like one-piece flow and improved VMI systems. The firm focuses on talent, technology, and risk management to meet rising lift truck demand and future growth.
Hyster-Yale Materials Handling, Inc., a global leader with over a century of expertise in designing, engineering, manufacturing, and servicing lift trucks and related products, has recently advanced its supply chain operations and supplier collaboration. Tracy Hixson, Vice President of Global Supply Chain, detailed these developments in an interview with Supply Chain World Magazine.
Since early 2024, Hyster-Yale has placed a strong emphasis on enhancing the efficiency and resilience of its supply chain. The company experienced a notable surge in lift truck demand beginning in 2020, triggered by the shift to e-commerce amid pandemic-related disruptions. This increased demand led to historic booking volumes but also created widespread backlogs across the industry, which Hyster-Yale has been actively addressing.
To overcome these challenges, Hyster-Yale concentrated on strengthening its supplier relationships throughout 2024. Tracy explained, “We dedicated time to closely collaborating and improving communications, ensuring our supply chains are consistently aligned for timely product deliveries.” The company also focused on reducing the inventory levels that had accumulated while fulfilling manufacturing backlogs.
Building on these efforts, Hyster-Yale is implementing new supply chain strategies in 2025, including a one-piece flow system. Tracy described this approach as a process that “pulls parts all the way through our value chain from our suppliers into our factories and then to our customers.” This system optimises operations, increases inventory transparency, and takes into account global supplier lead times.
The company anticipates continued growth in the lift truck market at a rate surpassing overall GDP, and it is preparing to maximise these opportunities by enhancing operational efficiency.
A key element of Hyster-Yale’s supply chain strategy involves closer collaboration and communication with suppliers. Tracy highlighted the establishment of a supplier advisory committee that convenes several times a year to share feedback and best practices. Monthly meetings with suppliers also take place to synchronise operations and collect real-time input.
To improve demand forecasting and planning, Hyster-Yale has introduced an enhanced vendor-managed inventory (VMI) system based on an in-process Kanban-style model. Tracy stated, “This allows suppliers to easily forecast demand… our demand is automatically communicated to the supplier, providing greater visibility throughout the entire process, from products in transit to their point of use.” The addition of six-week firm schedules further enables suppliers to align production timelines with the company’s needs.
Hyster-Yale also tailors its approach when working with local suppliers, visiting their factories and creating specific plans for high volume parts to maintain a Kanban-ready status. This detailed coordination helps keep inventory at optimal levels while providing real-time visibility of components.
Highlighting the importance of internal talent, Tracy said, “The biggest asset we have in our supply chain is our people… We often employ recent graduates and offer a rotational program that allows them to understand the entire business.”
Despite progress, some challenges remain. Tracy pointed out ongoing complexities with tariffs and trade policy changes, stating, “We’re taking time to understand the revamped rules, but there’s still uncertainty about where these policy changes will end up.” To mitigate risks, Hyster-Yale has adopted a dual-sourcing strategy over the past six to seven years, enabling flexibility if supplies are disrupted in one region.
In product development, Hyster-Yale continues to focus on modular, scalable designs through its Hyster® A-Series and Yale® Series N lift trucks. Tracy explained that this approach allows customers to customise trucks to their specific application needs without paying for unnecessary features.
Customer-driven innovation plays a significant role, with product development meetings frequently held to align offerings with operational requirements and budgets. Responding to industry trends such as operator turnover and safety concerns, the company is advancing operator assist and digital sensor technologies. Tracy commented, “This type of technology is a game changer for companies looking to increase operational safety support and overall best practices.”
Looking ahead to 2025, Hyster-Yale plans to continue investing in supply chain efficiency, safety, and technology, fully consolidating the one-piece flow system. Tracy also emphasised the role of technology, data, and AI in maintenance and quality management initiatives.
He concluded, “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.”
The company’s comprehensive approach reflects its commitment to adapting to evolving market conditions and maintaining its position as an industry leader in materials handling solutions.
Source: Noah Wire Services
