Talking to customers and learning how they’ve adopted our system to their business never ceases to amaze me. Recently, I conducted a case study with one of our customers who rents out heavy equipment to businesses engaged in the exploration of oil and gas.
The client uses Equipment Tracking coupled with our Maintenance Solution to track the location of equipment, monitor engine run-time and schedule maintenance accordingly. Not only are we saving their business time and money, but we have helped their entire business become more efficient.
If you rent or operate heavy machinery like this company, then you could be improving your business in three main areas by properly scheduling maintenance.
1) Extend Equipment Life and Avoid Costly Breakdowns
Replacing a piece of equipment could cost your company upwards of $300,000 and that's not to mention all the lost revenue from equipment downtime. It’s very important to keep your equipment on a regular maintenance schedule, but this can be extremely difficult when you have no idea how long your equipment has been running or where it’s located.
By coupling Equipment Tracking with Maintenance, our customer was able to schedule maintenance based on actual run-time data and send technicians out in response to this data.
With custom-configured run-time alarms, they were automatically notified when maintenance was needed; ensuring nothing fell through the cracks. With all of this data, our client was able to increase equipment life by 30% through improved maintenance scheduling. When you consider that this business has 600 pieces of equipment in the field ranging from $10,000-$300,000, the amount of money saved is impeccable.
2) Reduce Paperwork and Man-Hours
Before using our system their process for scheduling maintenance was basically a guy running around with a pen and paper. This was costing them almost two days of work per week by manually having to locate equipment - when sometimes maintenance was never even needed. As you know, the inefficient process can waste man-hours and increase administrative work.
By enabling a centralized system into your operations, you can eliminate bulky paperwork and streamline everything together for easy reporting. If you want to look back and see when your equipment last had its oil changed, all the information you need is at your fingertips. Our Equipment Rental customer was able to save multiple hours per week by not having to manually locate equipment and send out service technicians for unnecessary maintenance trips. Think of all the inefficient manual process your business has in place today and ask yourself, could it improve in some areas like our customer?
3) Cut Costs and Boost Profits
There are many expenses that can make or break a rental business from increasing fuel costs to inaccuracies in billing. Having insights into equipment location and run-time data can make a huge impact on your overall costs. The customer I spoke to saves $500 per week on fuel costs and 30 hours per each field tech by efficiently scheduling maintenance and responding to service calls. On top of that, they have also added revenue to their business by increasing billing inaccuracies.
In one instance, they pulled location data from our system to resolve a billing dispute which brought in six more rental days for the business. With all of these savings, this particular business has seen an ROI close to 200%. "The system definitely pays for itself, plus," said the Equipment Manager.
Helping businesses become more efficient, productive, and profitable is what we are all about at Pedigree Technologies. To read more, please check out our case studies today!