Just-in-time forklift strategy leads to FX wins

A business decision made by Hyundai Forklifts Australia to operate a just-in-time (JIT) delivery system is paying dividends.
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 distributor, 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, 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%.
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.

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