Know your Key Performance Indicators in rental management
As the calendar turns to November, it’s hard to believe that it’s been over a year now since becoming a regular contributor in this Aftermarket column. In last month’s edition, I wrote about the topic of relational capital; the intangible asset that encompasses the network of relationships you build with your customers, partners, and employees. My personal relational capital has allowed me to regularly get inspiration for content to contribute to this monthly column.
So, with that, this month’s inspiration came from my attendance at the recent MHEDA Rental and Used Equipment Management Conference in Chicago. The goal of the conference was not only to enhance rental and used equipment management skills, but also to increase the profitability of said departments. A common topic shared after speaker presentations and during round-table discussions was the topic of having dedicated technicians for your rental equipment. Let us further explore this topic.
Many dealerships I visit tend to have a dedicated rental equipment department. The rental department managers are responsible for making the service and parts decisions for the equipment within. Many of the rental management professionals I spoke to at this conference shared the same sentiment: When it comes to managing a rental fleet, where efficiency and reliability are paramount, the role of dedicated technicians cannot be overstated. Whether your dealership rents forklifts, construction equipment, or any other type of machinery, having a team of specialists solely focused on maintaining and servicing your rental fleet can be a game-changer.
Three important rental management KPIs that are related to aftermarket parts and service include:
Maintenance Costs: Monitoring the expenses related to maintaining your rental fleet. Costs include technician labor, spare parts, as well as any other 3rd party maintenance costs. Regular maintenance can extend the lifespan of your equipment and reduce long-term costs.
Employee Productivity: It is important to regularly measure the productivity of your staff involved in the rental process, including sales, customer service, maintenance and logistics.
Downtime: Monitoring the amount of time your rental equipment is out of service due to maintenance, repairs, waiting on spare parts, and other reasons. Reducing downtime is crucial for maximizing profitability.
These three KPIs (Key Performance Indicator) are why it’s recommended to have dedicated technicians servicing your rental equipment. Dedicated technicians are the heart and soul of your rental fleet maintenance. They are the ones who will know the intricacies of your equipment. By specializing in the specific make and model of forklifts or any machinery within your fleet. They can develop an intimate familiarity that extends far beyond the operator’s manual. Their expertise enables them to swiftly diagnose issues, execute efficient repairs, and minimize downtime. These specialists are the guardians of your machinery, ensuring it operates at peak performance.
Consistency is a cornerstone of dedicated technician teams. With a singular focus on your rental fleet, they adhere to a standardized maintenance and inspection regimen. Every forklift, aerial work platform, or other machine receives the same meticulous care, enhancing reliability, safety, and unwavering quality assurance.
Technician efficiency is a precious commodity. With dedicated technicians, you gain an edge in efficiency. These specialists are not distracted by the demands of everyday service calls with a wide array of customer owned equipment. Their undivided attention translates into quicker turnaround times for maintenance and repairs, ultimately benefiting your bottom line.
Preventive maintenance is the key to cost savings and a well-run rental fleet. Dedicated technicians excel at identifying and rectifying issues before they escalate into costly problems. By proactively addressing maintenance needs, they keep downtime to a minimum and ensure that the machines in your fleet remain reliable money-making machines.
Dedicated technicians create accountability and clear lines of responsibility. With a specialized team in place, it’s easier to pinpoint who is responsible for the condition of each machine. This accountability fosters a culture of excellence and ensures that your forklifts or other equipment are consistently kept in optimal working condition. These dedicated technicians also maintain meticulous records of all maintenance and repair activities for each piece of equipment in your rental fleet. This documentation is invaluable for tracking the history of each machine, adhering to maintenance schedules, and ensuring compliance with safety regulations.
Dedicated technicians are the driving force behind your rental fleet’s success. Their expertise, consistency, and commitment to excellence ensure the continued reliability of your equipment and elevate your service quality. In the competitive landscape of equipment rentals, dedicated technicians are a strategic investment that propels your business towards operational excellence and customer satisfaction.
By having a team of dedicated technicians responsible for servicing your rental fleet, you not only ensure the well-being of your equipment but also elevate the overall quality of service you provide to your valued customers. In the competitive world of equipment rentals, dedicated technicians are an investment that pays dividends in operational excellence.
Downtime is lost time. So, look to employ dedicated technicians for your rental equipment to ensure operational efficiency, profitability, and customer satisfaction. The presence of dedicated technicians instills a sense of accountability and excellence in the management of your rental fleet, making them an indispensable asset for success.
About the Author:
Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 16-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.