Equipment rental must take a backseat to other core processes such as finance, logistics and project management. It is because of this de-prioritisation that we tend to forget about the value we can create by optimising these business processes. This represents a missed opportunity. Optimising equipment rental improves cost monitoring, increases capacity utilisation and streamlines maintenance.
Planning and scheduling helps project managers determine what equipment they will require in the future. Without an internal reservation system in place, businesses tend to rely largely on MS Excel, paper and phone. This can potentially result in duplicate bookings, delays, and in some cases may even require businesses to rent equipment and other resources elsewhere. The expenses of materials and equipment used are not charged directly to the project. This reduces the reliability of budget monitoring.
Improving capacity utilisation
The cost of rental is disproportionate to that of wages and equipment. But the role of this process in logistics should not be underestimated. Inefficient decisions regarding tools and machinery will inevitably cause delays. This can be prevented through careful, effective scheduling of the items to be rented out. It also shows you what is available – and this streamlining ensures that your utilisation rate can increase.
Benefits of rental optimisation:
- More intensive use of the business’ own equipment;
- Improved budget monitoring;
- Integration with maintenance;
- Logistics optimisation.
Improving the efficiency of maintenance
You can also improve the efficiency of maintenance by more effectively integrating rental into the business process. Preventive maintenance can be scheduled automatically between projects. This prevents large equipments from having to be removed from the business for routing and recurring maintenance.
Enhancing cost monitoring
Improved management of the rental process provides opportunities for saving costs, preventing delays and improving access to information. Reports help to improve project monitoring, streamline logistics and enhance cost monitoring.
Maximum use of equipment
Investments in both large, valuable equipments and smaller tools used in larger numbers are used to maximum effect by integration into the administrative and planning process.