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Business Management: Cost-Reducing Technology

Five areas where the right software helps you save money

When it comes to managing costs to improve margins and profitability, employing the right technology is an important lever for every business owner and manager. Based on our experience across a range of rental centers, Point of Rental Software has pulled together a list of five facets you should look for in a software product.

1. Optimized Equipment  Usage through Key  Performance Indicators (KPI)
Fleet management technology and telematics software provide critical KPI data including hour meter readings and asset locations. When these indicators are integrated within your management software, you can find plenty of opportunity to save money. For instance, automated notifications for both remedial and preventative maintenance reduce down time and lower operational costs. The ability to schedule maintenance based on equipment use and not simply by prescheduled time periods helps avoid equipment breakdowns and failures. Plus, using software that correlates neglectful operation, repairs and unauthorized use to specific contracts, helps you filter potential, high-risk repeat rental customers.


2. Time Management with Mobile Technology
With increased costs, customer demands and a reduced skilled workforce, it has never been more important to improve efficiency and save time. Empowering workers, whether they’re making deliveries or pick-ups on a job site or out in the rental yard, today’s fleet software obtains data remotely through smartphones or tablets allowing consistent communication and real-time asset updates. As equipment is delivered, photographs of the equipment can be taken on-site capturing the condition of the equipment and the customer’s time stamped signature along with GPS coordinates. Upon pick-up, new photographs can be uploaded and immediately available in contracts for accurate documentation of any damage. This technology leaves little room for disputes, saving valuable time and allows for quick recovery of damage charges.

3. Dispatching, Routing and Scheduling Delivery Accuracy with GPS Tracking
Software management systems and GPS tracking technology have transformed dispatching, routing and scheduling for more accurate and efficient fleet management. Integrated GPS tracking tools help reduce fuel costs, reduce mileage and overall operational costs, and increase security and productivity. With the combined insight, software management works to improve service levels and allows easy overviews through driver performance evaluations. Dispatchers see real-time map views of all their fleet and can easily manage efficiency, re-routing trucks and minimize theft threats.


4. Business Analytics, Data Management & Reports
Converting data into valuable business insight can be overwhelming; however, business management software can simplify this process and give you the information you need to make smart business decisions.

Software that allows owners and managers to identify their own KPIs and generate customizable reports is important because such benchmarks vary by organization. Some of the most important performance indicators include time utilization, fleet age, maintenance costs, repair costs, revenue ratio, repeat order times, cancellation, and asset rental trends.

Knowing which equipment offers the highest ROI makes decisions to buy and sell equipment much easier. Knowing which type of customers turn into the most loyal customers for repeat business helps saves time and money when analyzing where to spend marketing dollars. And knowing how your business compares to competitors provides market insight to identify areas where you can improve. Proficiency within the software to allow for data import, export and generation of customizable reports is key to utilizing the information efficiently and effectively.

5. Employee Management & Engagement
Labor costs are often one of the largest expenses for any business. Today’s most effective software allows businesses to manage schedules and staffing, track commission, time on the job and productivity. These features integrated within your business management software provide visibility to dynamically budget for staff based on peak times. When used properly, management software minimizes lost opportunities due to over and under bookings while also streamlining the scheduling process to reduce labor costs and increase profitability.

Implementing the five solutions above can dramatically affect cost-savings and profit increases. However, the right software can provide countless additional features that will improve efficiencies and result in greater savings, even while costs continue to rise within the construction industry. As you evaluate software management options to fit your business, please visit point-of-rental.com, go to our blog page and look for our post headlined: Five Questions to Ask Before Choosing a Fleet and Rental Management Software. It will provide you with more information for your selection process.

Editor's note: Greg Bennett is vice president at Point of Rental Software. This article originally appeared in the July/August 2016 issue of Pro Contractor Rentals magazine. Copyright 2016, Direct Business Media.

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