Will Autonomous Forklifts Require a New Dealer Network?

Examining the differences in sales, finance, and service models.

Autonomous forklifts are advancing rapidly, reshaping the material handling industry and offering innovative solutions that redefine efficiency and productivity. Technology continues to improve and gain traction in these applications.

But how do autonomous forklift sales, finance, and service fit into traditional dealers' business models? While these established dealers understand their customers and their needs, they operate fundamentally differently than a technology company providing autonomous forklifts.

Bridging this gap presents challenges and highlights the fundamentally different approaches required to sell and service autonomous forklifts compared to traditional models.

Traditional forklift dealers thrive on a model emphasizing speed, volume, and service.

2024 U.S. Forklift Market Summary

Understanding the key differences between traditional and autonomous forklift models highlights the diverse demands of the material handling market.

Traditional Forklifts: ~360,000 units sold.

Autonomous Forklifts (AMRs): ~3,000 units sold.

This gap in adoption rates reflects not only technological challenges but also the fundamentally different sales, finance, and service processes required for autonomous forklifts compared to traditional machines. These differences underscore the importance of viewing traditional and autonomous forklifts as distinct segments within the broader material handling industry.


Forklift AI generated

Dealers stock forklifts on-site, ready to meet customer demands quickly.

Traditional vs Autonomous Forklift Dealers

1. Traditional Forklift Dealers

Forklift dealers operate as highly efficient, high-performance organizations with a business model that thrives on speed, volume, and service. These dealers are the backbone of the material handling industry, ensuring businesses have the equipment and support they need to keep operations running smoothly.

Products: Dealers stock forklifts on-site, ready to meet customer demands quickly. They often maintain an extensive catalog of products deployed immediately, ensuring customers have minimal downtime.

Sales: These are experienced professionals focused on closing deals every quarter. Their sales process is straightforward: they sell reliable, proven machines that customers understand and can integrate into their operations immediately. It’s a fast-moving model that prioritizes volume and efficiency.

Finance: Dealers offer flexible financing options tailored to meet customer needs. From leasing arrangements to short- and long-term payment plans, they provide solutions that help clients manage cash flow while acquiring the necessary equipment. This financial flexibility helps dealers close deals quickly and maintain strong customer relationships.

Service: Dealers employ on-site service teams who ensure forklifts stay operational, minimizing downtime and maximizing the value of the customer’s investment. Their local, responsive support builds trust and long-term loyalty with customers.

Conclusion: Traditional forklift dealers thrive on a model emphasizing speed, volume, and service. Their ability to quickly deliver proven products, supported by local service teams, ensures they remain indispensable to their customers.


2. Autonomous Forklift Providers

These companies operate as consultative organizations with a process built on customization, integration, and long-term planning. They are changing the material handling industry by offering solutions to improve workflows and boost productivity.

Products: Autonomous forklift providers deliver advanced solutions tailored to specific needs. These machines have sensors, navigation systems, and software that integrate into existing workflows. To work properly, autonomous forklifts require assessments and custom setups.

Sales: To understand clients' needs, sales teams work closely with them over longer sales cycles. The process includes operational assessments, ROI analysis, and alignment with key stakeholders, ensuring that autonomous forklifts provide measurable value.

Finance: Providers offer financing, including the machine and software licenses needed. These financial options acknowledge that clients rely entirely on their provider for software updates and support. Choosing a financially stable provider is critical since traditional dealers can’t service these units. These financial models often include performance-based metrics to help clients justify long ROI periods.

Service: Autonomous forklift providers offer comprehensive support, including remote diagnostics, software updates, and on-site technical assistance as needed. Unlike traditional dealers, they rely on centralized teams instead of local service. This centralized model provides access to specialized expertise, but clients must rely on a sole-source provider. Ongoing maintenance and optimization services are essential to minimize disruptions.

Conclusion: Autonomous forklift providers succeed by focusing on customized solutions, long-term planning, and dedicated support. Their ability to deliver advanced, integrated systems addresses the unique needs of businesses looking to embrace automation and achieve productivity gains.

Autonomous forklifts present challenges due to their unique requirements for software expertise.

Comparison Summary:

Challenges of Transitioning:

Autonomous forklifts present challenges due to their unique requirements for software expertise, system integration, and long-term support. These differences contrast the traditional forklift model, which prioritizes speed, volume, and localized service. This highlights the distinct approaches necessary for success in each market segment.

The question remains: Can one dealer network service both types of forklifts?

Action Plans for Dealers Navigating Autonomous Forklift Integration

  1. Create a Dedicated 'Technology Group':
    Establish a specialized team within the dealership to handle autonomous forklift sales, service, and integration. This group operates independently of the core sales team, ensuring that the longer sales cycles and consultative processes for autonomous forklifts do not disrupt traditional forklift sales' fast-paced, high-volume focus. This separation allows the dealership to invest in technical expertise and focus on the unique needs of automation clients without compromising traditional sales performance.

  2. Adopt a Collaborative Sales Process:
    Partner with autonomous forklift providers to share the sales process. While the autonomous provider handles the technical assessments, software integration, and ROI discussions, the dealer remains engaged by attending meetings, participating in calls, and providing valuable local market insights. This collaboration helps maintain the dealer’s client relationship and ensures they are part of the long-term solution, even if the sales process is largely consultative.

  3. Develop a Hybrid Service Model:
    Explore hybrid service solutions to address the critical gap in daily service and rapid response times for autonomous forklifts. Dealers can train a subset of their technicians in autonomous systems to handle basic troubleshooting, mechanical issues, and immediate on-site responses. Technicians can collaborate with the autonomous provider’s centralized team for complex software or integration issues. This hybrid model leverages the dealer’s local presence and ensures timely responses while maintaining access to advanced expertise.

  4. Revisit Service-Level Agreements (SLAs):
    Work with autonomous forklift providers to create clear SLAs that define response times, roles, and responsibilities. These agreements should ensure that the dealer can confidently address local service needs, with support from the provider for remote diagnostics, software updates, and advanced troubleshooting. The key is to balance customer expectations for rapid service with the technical limitations of a centralized support model.

  5. Pilot-Test Integration Strategies:
    Before rolling out autonomous forklift offerings across the entire dealer network, pilot a “Technology Group” and hybrid service model with select customers. Use these pilot programs to identify challenges, optimize workflows, and gather data to refine your approach. This controlled introduction minimizes disruption and positions the dealer for scalable success.

Forklift AI generated

Explore hybrid service solutions to address the critical gap in daily service and rapid response times.

About the Author

John Buttery is a seasoned sales and business development professional passionate about building high-performance dealer networks and driving strategic alliances. With extensive experience across diverse industries, such as autonomous robotics, geospatial technologies, and connected vehicle data, John has consistently delivered exceptional results in channel sales and partner program development. His bilingual proficiency in Spanish and international sales expertise have enabled him to establish and manage thriving dealer networks across the Americas and beyond.

John's career highlights include designing and launching innovative partner programs, achieving multimillion-dollar sales targets, and enabling reseller networks through tailored training and performance-enhancing tools. He combines his deep technical knowledge in GNSS, LiDAR, AI, and autonomous systems with a results-oriented approach, empowering partners to excel in competitive markets.

An accomplished writer and thought leader in channel sales, John has authored several publications offering actionable strategies for partner program success and sustainable revenue growth. His commitment to sharing insights and fostering collaboration underscores his dedication to advancing the field and enabling businesses to thrive in dynamic environments.


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Description
Examining the unique challenges of selling, financing, and servicing autonomous forklifts while comparing them to traditional dealer models.

Summary
Autonomous forklifts are revolutionizing the material handling industry, but they require a fundamentally different approach to sales, finance, and service than traditional models. While traditional forklift dealers excel in speed and local support, autonomous forklift providers focus on long-term, consultative solutions with centralized service. This article explores these key differences and highlights the challenges of adapting to the autonomous forklift market, offering valuable insights for businesses navigating this shift.

Keywords
AMR, AGS, Material Handling, Autonomous Forklifts, Channel Sales, Dealer Networks, Strategic Alliances, Sales Strategy, Key Accounts


Will Autonomous Forklifts Require a New Dealer Network?
Autonomous forklifts are reshaping the material handling industry but come with unique challenges.
➡️ Traditional dealers thrive on speed, volume, and localized service.
➡️ Autonomous forklift providers rely on customized solutions and centralized expertise.
➡️ Financing models differ, with AMRs including software licenses and long ROI periods.
➡️ Service challenges arise due to reliance on centralized teams and specialized expertise.
Businesses need to assess how these differences impact their adoption strategy. Traditional and autonomous forklifts serve distinct market segments, each requiring a tailored approach.

#AMR #AGV #MaterialHandling #AutonomousForklifts #ChannelSales #DealerNetworks #StrategicAlliances #SalesStrategy #KeyAccounts

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