Organizations today are striving to adapt quickly to a rapidly evolving market. One sector which is witnessing new avenues for incremental growth is heavy equipment. The catchword here is Servitization--industries using their products to sell the outcome as a service, as opposed to the traditional sales model. Simply put, customers nowadays prefer to rent equipment rather than block their own capital by purchasing.
This behavioral shift is changing everything about how heavy equipment manufacturers function. Making the most of this expanding market is both necessary and profitable for these companies. Market forces have already taken care of the demand aspect; now is the time to focus all your energies on readying your business to meet customers’ demands.
At Columbus, we receive requests from many equipment manufacturers looking for our assistance on how they should proceed further. Our constant endeavor is to ensure you are investing in the right technology, so that you can keep your business relevant.
Let’s walk through the top five perils that equipment rental and leasing companies fall prey to, and how to avoid them.
#Peril 1. Not having plans in place for future scalability
It’s a perform-or-perish scenario out there, and if you don’t adapt fast, you may very well not be adapting at all.
It is very important that equipment rental and leasing businesses make provisions for future business scalability from the very start; this focused approach can help save on expenses and avoid broken systems that are not in sync with organizations’ goals.
#Peril 2. Not knowing the newest technological developments and trends
As a solution, equipment rental software is a constantly evolving part of the ERP ecology. For example, at present, equipment rental and leasing software not only provides operational support, but also uses the newest technologies to connect team members in the field. To have better control and influence, they also offer insights by using technologies like AR, MR, VR and IoT.
#Peril 3. Choosing software that does not comply with the needs of all stakeholders
We believe that a holistic approach to the overall equipment rental and leasing business can be extremely beneficial. After all, the technical teams, the field personnel, and the operations team, work in tandem with other teams like marketing, sales, finance and IT (to name a few) to keep the wheels of a business running. It is vital for an equipment rental and leasing company to implement a solution that meets the unique needs of the stakeholders across the organization. From sales and contract management, to invoicing and revenue recognition, to field service—the right solution for you should meet the requirements across your entire business.
#Peril 4. Taking no notice of the effects of siloed information (Half knowledge is dangerous)
Contrary to popular belief, equipment rental and leasing software deals with operations and finance-related information in addition to rental and leasing-related data.
Information silos can be very detrimental for any company, as this kind of information can lead to misinterpretations of C-Suite strategies, leading to incorrect operational tactics.
Combined and complete knowledge of information ensures that the financial planning and reporting function of a company is in harmony with its rental and leasing operations. It also ensures that correct investment decisions are made, and that the equipment rental and leasing department’s demands are known to the finance team and vice-versa.
#Peril 5. Not remembering the importance of a delightful customer experience
“Customer is king” is an oft-repeated and well-acknowledged value that businesses swear by. It is a testimony to the fact that success cannot be achieved if you put the customer second. In the rental and leasing marketplace, you must continue to earn your customers’ business throughout the life of a leasing contract. Field service on leased equipment is a critical component for ensuring that customers are getting the productivity they need, so this is an important consideration for companies that lease equipment.
The way forward with Columbus
Columbus can help you assess your equipment rental software requirements. The approach involves making a checklist of all your critical business processes, and then matching those with the software’s abilities. Properly assessing the requirements ensures you don’t miss out on any of your needs while purchasing the much-needed equipment rental software.