Equipment rental companies are 100% dependent on the availability, reliability, and safety of the equipment that they rent to customers. Their assets, and their asset availability to rent, is the only product that generates revenue. In this sense, equipment and asset rental companies need asset-centric solutions to manage their equipment maintenance and availability just as much, if not more, than equipment manufacturers.
When it comes to the revenue cycle of an equipment rental company, there a numerous challenges to contend with to provide the best experience for customers while maintaining profitability. These challenges include:
- Tracking and managing high volume equipment churn
- Anticipating equipment demand and coordinating asset return/refresh to meet it
- Prioritizing asset pick-up and refurbishment to meet that demand
- Analyzing demand across multiple regions, allowing for seasonality and the cyclical nature of construction and agriculture
- Balancing rental income, unit demand, and cost of service to maintain the smallest, most profitable, fleet possible while meeting customer demand
- Ensuring that required parts are on-hand, maintaining visibility to inventory, and reducing the overall carrying cost of inventory while providing a high First Time Fix rate
- Developing the ability to trend equipment performance, cost, and depreciated value to plan for end of life and replacement
- Obtaining real-time business information to balance assets across sites, regions, and geographies, maximizing revenue and minimizing cost
ServiceMax Asset 360 provides answers for all these challenges and more. Real-time tracking of asset data allows for operational insight into asset location, rental commitment period, end of rental date, average time to refurbish, and available to promise date for new customers. The ability to see the condition of the asset throughout this process and manage the priority of high-demand assets is critical to customer success.
Additionally, Asset 360 tracks all maintenance activities and costs associated with an asset over time. This information is critical to analyze the overall cost to service the asset and compare it to the revenue gained by that asset. This business information is key in determining which assets to keep, sell, replace, and which to dispose of.
Tracking asset location and regional or geographical demand provide insight and intelligence on where to position or relocate assets to maximize rental income. Combined with the known seasonality of different industries only makes this capability more important to rental companies.
Remote connectivity, telematics, and IoT data significantly enhance the ability to proactively manage, prioritize, pick up and repair rental assets. Monitoring the condition of the asset in the field can increase asset uptime by as much as 20%, extend asset economic life by 16%, reduce maintenance costs by 23%, and increase rental income, per unit, by over 25%.
Learn more about how equipment rental companies are digitally transforming service here.