How Keeping a Closer Eye on Your Equipment Can Save You Money

The equipment rental/service industry is at the intersection point of remarkable new technologies that have become affordable mainstream business tools. What was once the leading edge of business technology, is now an industry standard. The sample size of users has grown from the early technology adopters, allowing managers to more accurately forecast their ROI when contemplating IT challenges.

A growing number of companies are integrating telematics with their equipment rental ERP software solutions. There is immense value in related business analytics tools, which can deliver measurable cost savings on labor costs, equipment maintenance and repair expenses, scheduling, reduction of downtime, and a higher rate of utilization. When the incremental savings of this business solution are spread across the entire inventory of rentable equipment, it becomes a meaningful source of cost savings and increased revenue for the business.  In a highly competitive industry like equipment rental, every penny matters.

Telematics refers to the use of sensors and data transmission to provide real-time remote monitoring of equipment. All kinds of data may be gathered and tracked, including usage, maintenance scheduling, warnings or error messages, location, temperature, etc. In other words, any operational aspect that is created could be monitored and tracked. As the cost of both the monitors and the data transmission has dropped along with the sophistication of what can be monitored with this technology, its use immediately creates savings in labor, along with better and faster responses to warnings which reduces downtime and repair costs.  Gathering and tracking this data is nearly fully automated in real time, thereby requiring almost no manual user action. Integrating this data into the company ERP system offers the possibility of real time equipment status updates and scheduling. Integration of location and usage information also aids in billing and scheduling components. Equipment specific usage and maintenance histories may be disseminated across the operation into mobile devices for remote workers. These histories may be analyzed for cost, revenue, and profitability and even predictive analysis can be conducted and business decisions based on real tracked data and its analysis.

Imagine you own and rent out tank equipment for holding a variety of different types of substances- oil or fuel may be a common example. ERP integration into this company would help streamline tank maintenance/service and ensure they are constantly functioning at their highest possible levels. Real-time diagnostics are often some of the most key elements of service solutions. The system send manages regular readouts of tank levels, compares those levels with expected output from sales as well as measured input for refills, and finally alerts users should there a leak, low volume, or other operational discrepancies. The key here is knowing when to respond, and to do so before it is too late.

This monitoring and data infrastructure may be leveraged to find opportunities to optimize operations. It offers beneficial data to wide range of business areas- including scheduling and routing as well as maintenance or early detection of repair/servicing. A geofencing feature, for example, can establish boundaries and guide equipment via GPS tracking, often relating back to more precise routes and reduced fuel costs. This same feature can also decrease the risk of equipment theft as another way to address an owner’s concern with long term equipment health. It creates a better customer service by have a proactive equipment service response.  For example: you have a piece of equipment at a customer site which is critical to the customers work, its downtime creates huge costs for the customer.  A warning alert is sent from the device and received and routed automatically to the both the equipment scheduler and equipment maintenance managers.  A replacement is found and dispatched and a service repair workflow initiated for that piece of equipment.  These actions take place without any notification or response from the customer and their downtime is minimized.

HSO understands the value of implementing these technologies into your equipment rental and/or service business. In reducing costs, increasing customer retention and service levels, and optimizing utilization, and owner can effectively reap more bottom line profit from every equipment asset. Now is the time to discover how HSO’s enterprise systems could best suit your needs!

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