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NACCO Materials Handling Group (NMHG) is the world’s leading manufacturer and marketer of lift trucks, with more than 765,000 lift trucks in operation worldwide. The comprehensive line of Hyster and Yale branded lift trucks ranges from pallet trucks to narrow aisle trucks to order pickers to container handlers. As a truly global company, efficient international logistics programs are critical to their success.
Challenge
NMHG’s European assembly operations source the best parts from the top suppliers around the globe. Many of these parts are supplied by US vendors. In the past, the company cross-docked US-sourced components at a manufacturing facility in the US, where they were then consolidated and exported to Europe. The challenge, however, was that cross-docking and freight consolidation is not a core competency. Internal costs were high. Even more importantly, the European facilities lacked the visibility, critical information and progress updates they needed to maximize their operations.
Solution
NMHG Europe realized they needed a professionally run program and set out to find a partner with the necessary resources and capabilities. The company conducted an exhaustive search, narrowing the list to seven firms which they personally visited. According to Piet vanDreumel of NACCO, “With Reilly International, we were very impressed by the level of commitment, enthusiasm and care that we saw from each employee we met. It was clear to us that they not only had the resources and expertise we needed, but that we were going to get a level of service and support that the other companies wouldn’t be able to match.”
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Results
Reilly International began adding value from day one. NMHG’s internal system relied on manual tracking and updates, so while the improved technology was being implemented, Reilly used Excel spreadsheets and other simple tools to provide the organization and visibility the European operations badly needed. “This flexibility and attention to our immediate needs confirmed to us that we made the right choice,” said Piet.
With Reilly International, NMHG's European operations have realized a highly efficient, professional vendor consolidation program. They now have exceptional visibility and real-time updates. Because of this, the company has realized higher internal efficiencies and has been able to improve purchasing and parts supplier relationships.
At regularly scheduled improvement meetings, Reilly International delivers proactive solutions, new ideas and valuable recommendations. The relationship has evolved to a true partnership based on mutual trust, respect and an enduring drive for continual improvement. NMHG Europe is now expanding the program into new areas and introducing Reilly International’s solutions into other divisions as well.
“Reilly’s warehouse operations are clearly superior. Our inbound freight is carefully inspected and even repacked if necessary. Their attention to detail is exceptional.”
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