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Is Software-Based Diagnostics for Equipment Impacting You?
Give Us Your Opinion

Historically, material handling distributors have generated much of their revenue from service work, which affords higher profit margins than does the sale of new equipment. Within the service portfolio, many distributorships service all brands of equipment, not just those that they sell. The introduction of software-based diagnostics for equipment which requires distributors to have access to the unique software for each manufacturer threatens the ability of distributors to continue their service portolio and impact their profitability.

What is your opinion? How will the introduction of software-based diagnostics improve or hurt your business?

To add your opinion, Click Here or scroll to the bottom of the entries.


 
Member Type: Disitributor       Posted: December 17, 2007

I would say this is one of the areas where we need to 'think differently' than we have in the past. The continual updating of the software, and the number of various cables to connect up, as well as finding service techs comfortable with what can and cannot be done with the laptop. I think it also means we must reconsider the value of service techs who are comfortable and able to work with computers, and we must not only train, but compensate those techs that can be trusted to properly use computers.

I would like to know how other dealers are handling the need to keep software current, what procedures are being used to keep the expense down. I would also love to hear what percentage of the service techs really have an up-to-date laptop and the cables they need.

 
Member Type: Disitributor       Posted: December 6, 2007

As the Service Manager at a multi-line dealer, I don't know where to begin. It affects the dealers on so many levels. The cost of the hardware, software and cables is straining the service departments to equip each road tech with all the proper equipment. There is also the endless hassle of dealing with the different operating systems and keeping the software updated.

Can you imagine the outcry if every auto manufacturer had different cables, software and handsets for each different model?

The constant updates to the engine controllers require constant updating of each laptop. Since the bulk of the work is done in the field, this is quite a challenge.

A standardized cable would be a great place to start. I would hope that eventually the manufacturers would get together and decide on a platform, but I do not see that happening anytime soon. Since the computerized systems are mandated on IC trucks by the EPA, there isn't much you can do but deal with it and do the best you can.

Training has always been essential to success in the service business; it just requires a different kind of training now.

 
Member Type: Disitributor       Posted: December 3, 2007

I believe that a generic analyzer is needed for anyone that requests one. This will allow the customer to choose who he wants to perform service on his lift truck. The customer is not handcuffed to a weak or underperforming service provider or dealer in a certain area.

 
Member Type: Manufacturer       Posted: April 15, 2007

I can see how this trend is a double-edged sword for distributors. Whichever brand they represent, that business will be more captive to them. However, if they are making their living by servicing other brands, then it could be a negative for them. ...The problem is ensuring that dealers have the necessary connections, software and technological tools on their laptops when they attach them to the equipment. Dealers of other brands may find servicing the truck more difficult, but it's always possible. We are now also imposing on our dealers an obligation to have certified technicians. So we must also invest in our people to keep up with the technology that we are building into the equipment.
  — excerpt from Paul Laroia, President, Hyster Company, in Diagnostic Software. To read his full response, click here.

 
Member Type: Manufacturer      Posted: April 15, 2007

Toyota makes its software available to dealers at no cost. End-user customers who choose to service their own equipment can attend our schools on a space-available basis, so they too would be able to access whatever they need. For a representative of another lift truck brand, it will be difficult for them to get the access codes, but we don't create the software with the intent of excluding the competition. It comes down to a matter of being trained on a particular model, which is a problem with anyone servicing competitive equipment anyway. ...Any good lift truck manufacturer who thinks it has a valued piece of equipment is more concerned with training people to work on it. Our goal is to have the customer's truck up and running in the shortest time possible, so we try to eliminate as many hurdles as we can. ...
  — excerpt from Cary Howie, Technical Services Manager, Toyota Material Handling, U.S.A. in Diagnostic Software. To read his full response, click here.

 
Member Type: Manufacturer       Posted: April 15, 2007

This industry trend is the result of EPA regulations and the need to develop on-board diagnostics systems to manage emissions controls. The short-term impact is in the required level of training. The range of technology used in each truck, regardless of its manufacturer, makes it difficult for any untrained mechanic to work on the equipment.
  — excerpt from Jeff Winner, National Service Manager, Komatsu Forklift U.S.A, in Diagnostic Software. To read his full response, click here.

 
Member Type: Manufacturer       Posted: April 15, 2007

The importance of training is substantially greater with these new EPA-compliant products because the troubleshooting is more comprehensive and the technician must have more knowledge. General diagnostic equipment can read the EPA codes but won't give access to any additional manufacturer restrictions, so these new trucks do make it more difficult for dealers to work on another brand. But it's not impossible. As the industry evolves over time, competitive equipment will become easier to work on.
  — excerpt from Jeff Powell, Vice President of Product Support, Komatsu Forklift U.S.A. in Diagnostic Software. To read his full response, click here.

 
Member Type: Disitributor       Posted: March 25, 2008

As a service technician with almost 40 years in this field, I find it a more than a little aggravating to walk into a customer with a mixed fleet, and to have to tell them I don't have access to service data or equipment on some
of their equipment. The trend among end users has been to take competitive bids at each purchase, and then to contract service with whomever they most trust. Now I'm having to advise my customers of a new variable. They should buy the equipment from the dealer they trust regardless of cost, or else they will have to do business with several or many dealers for service. This will definately harm the small equipment dealer, as much of our income is from service. It also harms the reputation of the mechanic, at least in the short term, until customers come to the understanding of the changes in the market place.

The inablility to even purchase software and cables, at ANY price from some manufacturers, may hurt their reputation as well.

I believe that if the industry does not come together with some sort of standard soon, all may suffer, with customers keeping older trucks longer, and buying used equipment. EPA regs. aside, if auto mfg. can standardise, why can't we?

 
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The MHEDA Journal • Spring 2007 • Volume 36, No. 2 • Entire contents are Copyright © Data Key Communications, Inc. • All rights reserved. • Nothing may be reproduced in whole or part without written permission of the publisher.