Keeping Track of Rental Equipment
When your customers call, wanting to rent equipment, how can you quickly identify whether you have the right piece available? How do you keep track of your rental equipment? Is your invoicing accurate? How efficient is your utilization of the rental equipment?
It is vitally important for rental companies to be able to keep track of all rental equipment. When a customer calls asking about availability of equipment, you need to be able to search for appropriate equipment using the criteria presented by the customer, and quickly establish the likely availability of that piece of equipment. There is a very high administrative cost for companies to accurately be able to monitor what equipment will be available when.
Availability of equipment is not just impacted by other rental agreements, but must take into account transport time, and the servicing of equipment on return. Organizations require a rental system that integrates all aspects of the rental department with the servicing, warehouse and transport departments, in order to be able to accurately predict the availability of equipment.
Rental pricing agreements can be complex in structure with differing offers of fixed price, daily or weekly rental. Customers may extend their rental period or equipment may be returned late. It is common to find that rental companies have missed the opportunity for additional revenue when the overrun on a contract is missed.
Rental companies can incur high inventory holding costs for rental equipment held in the warehouse. It is common to find that certain pieces of equipment are rarely rented out, where other equipment is in short supply.
In order to plan effectively, and to ensure that they are holding the right levels of inventory of the right equipment, rental organizations need comprehensive information about the utilization levels of all their rental assets.
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