MRO
Standardization and Replacement of Forklift-Fleet including Maintenance
Standardized and replaced all MHE across the region, including maintenance contracts, to reduce costs, downtime and streamline fleet management.
Industry
Manufacturing
Direct/Indirect
Direct
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Sourcing Context & Procurement Challenge
Mobile Handling Equipment (MHE) such as forklifts, pallet jacks, and lift systems were managed independently by each site, with varying brands, differen specifications, lease terms, and service agreements. This fragmented setup caused high maintenance costs, unpredictable downtime, and operational inefficiencies as well as violations of the EHS policies. Procurement was tasked with standardizing the MHE fleet and bundling service contracts to reduce TCO and improve uptime.
Procurement Objectives & Strategic Levers
Objectives included >20% cost reduction, >95% fleet uptime, and harmonization of equipment specs across sites. Strategic levers were fleet right-sizing, multi-site leasing contracts, and bundled maintenance agreements with performance-based SLAs. A key focus was improving data visibility and proactively managing equipment lifecycle costs.
Sourcing Strategy & Execution Approach
Procurement conducted a fleet audit and total cost assessment across all countries and plants. A competitive RFP was launched with tiered providers for both MHE supply and maintenance. Contracts were structured with modular pricing, remote diagnostics, and real-time maintenance dashboards. Preventive maintenance schedules were aligned group-wide.
Results & Values Delivered
Cost savings exceeded 21%, and fleet utilization improved by 32%. Equipment downtime was cut in half through predictive maintenance and real-time alerts. The number of equipment types was reduced by 40%, simplifying operations and spare parts inventory. Facilities reported significantly improved reliability and operational flow. Some exceptions were neccessary regarding specification of i.e. forklifts (width, turning radius) due to given circumstances at some plants).
Role & Contribution
We led the sourcing strategy and fleet harmonization program, in coordination with site logistics leads and plant managers. I negotiated all lease and service contracts and implemented KPI-based governance to monitor uptime and maintenance quality. I also facilitated rollout planning and local stakeholder onboarding.
Conclusion & Reflections
This project showed how indirect assets like MHE can become strategic performance levers when managed professionally. The insight: downtime is a silent cost. Procurement’s role is to link operations, finance, and asset lifecycle thinking into a single, data-driven strategy. When looking at FSL open-book for all spares is needed.