Tuning into Technology

Oct. 12, 2006
The rental industry continues to adopt technology to keep up with the needs of the customer.

When it comes to implementing new technology, rental companies understand that it’s not necessary to use every bit of gadgetry that is available. Rental centers rarely put technology in place “just because,” but rather do it when they see it will really help with productivity or customer service and give the customer a tangible benefit. While some rental centers may use online reservation technology in their locations, others haven’t yet chosen that route because they don’t see a high demand for it. And while some companies have online billing and payment capabilities, others don’t yet have that ability. Even with the proliferation of e-mail and BlackBerrys, face-to-face communication still reigns supreme as the preferred method of communication between rental companies and their customers. No matter what the technology in question, rental companies tend to heed requests and err on the side of caution, rather than pass customers by with newfangled technology that they may not need.

The success of online reservations gets mixed reviews from the rental experts. The reservation process with rental can be tricky because so many variables are involved in the selection of equipment. Homeowners tend to be more likely than contractor customers to utilize online reservation systems, possibly because they may browse during non-business hours or are unfamiliar with the equipment, whereas contractors may prefer to deal with their sales representative because they know what they need.

Greenwich, Conn.-based United Rentals allows customers to go online to compare equipment facts, request quotes, and ask general questions, but the company doesn’t take an exact reservation, according to Mary Jane Guy, customer service manager. “Within the equipment rental industry there are a lot of variables and logistics that need to come into play to set up an equipment reservation 100 percent so that it’s exactly what the customers will need to perform their specific application,” Guy says.

Mike Watts, president and CEO of Phoenix-based Sunstate Equipment Co., agrees with that sentiment. He says the company does not get meaningful requests for that capability, and doesn’t believe that it will work well for those who do use it. He says there are so many variables to a reservation — sizes of machines, delivery times, substitutions — that it’s easier to speak with a salesperson. “For the most part the phone will continue to work as a more efficient tool to both order and schedule equipment,” he says.

On the flip side, Newport, Ky.-based Art’s Rental has a rental reservation system in place, and according to the company’s IT coordinator, Rebecca Lambert, it has received a good response. The company’s system went into effect in 2001, with significant changes in 2004. She says convenience and control are the two main reasons why their system is popular. “For the people who know what they’re looking for and are already accustomed to general online ordering — as many more people are becoming — this process gives them full control of what is happening, and they have a printed confirmation of exactly what they have submitted.”

There will always be those customers, both contractor and homeowner, who know exactly what they want and will prefer to go online at their leisure to reserve equipment. So while the concept may not be a huge draw for some rental customers, it is an added convenience for the customers who prefer online amenities.

Talk to me

The rental business has historically been built on relationships — the face-to-face contact that is the best form of communication. While interactions and phone conversations are important, other methods of communication are becoming more popular. The use of e-mail has grown in popularity in the past 10 years and has become a quick, easy way to send a message at the user’s convenience. In e-mail, ideas can get lost in translation, and on occasion e-mails can disappear into thin air, but that’s not to say that e-mail doesn’t have its benefits.

“Communication is definitely changing in the rental industry, as well as globally,” says Art’s Rentals’ Lambert. “E-mail is an extremely convenient and fast method of communication, and is relied on much more heavily than two or three years ago. One big bonus of e-mail is that it provides a paperless ‘paper trail’ of communication. I have also found that many people are beginning to rely on e-mailing documents as opposed to faxing, which I believe is a sign of the fax machine becoming obsolete in the near future. I do not believe that voice communication will ever be replaced, however, since there is so much more information conveyed in the voice that a typewritten e-mail simply cannot duplicate.”

As technology advances, those who rely on e-mail can even check their Inbox on the go, such as in airports or while on the road.

“I’ve even been on ride-alongs with some of the district sales managers who actually have laptops and will use a wireless Internet connection right in their truck,” says Nicole Salas, United Rentals manager of corporate communications.

United Rental’s Guy says that the preferred form of communication is still the phone and face-to-face interaction, but the company does see that customers are now more apt to interact online as well. The sales force is even using the BlackBerry to facilitate communication. Volvo Rents, Asheville, N.C., has also seen the use of the BlackBerry pick up a lot, which has helped the speed of response to customers, according to Nick Mavrick, vice president of global strategy for the company.

Cell phones too have helped communication between customers and rental companies. The ability to make a phone call from out in the field if equipment breaks down is a definite advantage and often a time saver. Cell phones also allow rental store owners and managers to receive business calls outside of standard hours.
“All of our stores are locally owned, so the way it has impacted our business is our owners have a vested interest to pick up the phones during non-standard hours,” says Mavrick. “It’s probably increased our utilization by making us more accessible to customers 24/7.”

Volvo Rents also has the capability to preprogram its 800 number system so that when a certain customer calls, it will be rerouted and ring directly to a programmed cell phone. This allows customers to reach a rental owner at all times, giving an extra level of personalization. “It gives us the ability to treat our best clients differently,” Mavrick says.

Order up

Online parts ordering is also receiving favorable reviews from rental companies. Lambert says that Art’s Rentals’ parts ordering and tracking has improved, with more parts being ordered online, receiving greater discounts, and orders are much more organized and better managed. Sunstate also uses the Internet for parts purchases, as well as submitting vendor purchase orders with spec info and viewing manuals online.

Volvo Rents uses SmartEquip systems to order parts. SmartEquip’s e-FleetPro is an electronic product support system that connects manufacturers on the network with fleet owners. The purpose of the system is to streamline maintenance and troubleshooting, and eliminate ordering errors.

“It lowers the inventory of parts in each and every location,” Mavrick says. “It speeds up replenishment of parts, which is critical in keeping the machines on rent. So it lowers our parts inventory cost and increases our utilization.”

Because it’s quicker and easier to order parts, fewer parts need to be stocked in the warehouse. Not only does this free up space, but it also frees up money tied into parts.

Back to the future

The future for online and computer capabilities in the industry looks bright. Rental companies continue looking for ways to make their customers’ lives easier and to make themselves more efficient. United Rentals, for example, currently provides customers with an e-statement that shows all of their activity for a period of time, which is automatically e-mailed to them. The company doesn’t offer online payment at the moment, but Guy says that is a possibility in the future. United examines new possibilities in terms of technology, and considers both employee and customer suggestions.

“The IT department goes through [suggestions] thoroughly and decides what’s reasonable and what makes good business sense,” Guy says.

Sunstate Equipment currently offers online applications for new accounts as well as employment applications. Watts predicts that the next change in the industry will come from hand-held computers, similar to those used by car rental companies when a vehicle is returned. Exact time of receipt, the name of the person accepting the delivery and more information could all be documented with the devices.

Volvo Rents has plans in the works to implement online equipment reservations and online account access in its next-generation system. Mavrick also says that in the future the company is looking at using broadband video to enable select customers to access the facilities at any hour for pickup. With this capability, certain customers could come to the facility at 5 a.m. for example, and, using a video screen, verify his identification, give an authorization code and gain access to the facility.

“That makes a lot of sense to me because that’s value added to the customer,” Mavrick says. “It’s win-win for both of us in that we’re probably not going to staff the facility at four in the morning, but they need access and we gave it to them. We trust them because we have a track record with them, but we’re not cavalier about it in the sense that we’re authorizing them to access certain portions, we can see what they’re doing, we can open the gate and close it electronically. That’s real, tangible value to the customer.”

This year, Art’s Rental is adding a centralized dispatch, complete with customized dispatch software and GPS tracking for its delivery fleet. Lambert says the goal is to make the delivery fleet more efficient and reliable by giving dispatchers more information at their fingertips.

Scottsdale, Ariz.-based RSC Equipment Rental in July launched RSC ePay, an online payment option for its construction and industrial equipment customers in the United States. RSC ePay is part of the company’s RSC Online service, which allows customers to reserve equipment, manage reports about rental transactions and call equipment off rent online. To use ePay, customers simply must register with RSC Online. Prior to introducing ePay publicly, RSC completed a pilot campaign to gather feedback from its customers. Customers can process payments and access payment history, helping them to increase both productivity and profitability.

By listening to customer requests, rental company owners can stay in tune with the needs of their clientele. The rental world covers a wide spectrum in terms of its willingness to adopt new technology. Some companies still keep reservations on paper and barely use e-mail, while the next company has all the latest up-to-date software. The key is knowing what customers want and the improvements that will truly benefit the customers.

United’s Salas says that any technologies the company uses or will use in the future are designed to make customers’ lives easier. “We’re here to make getting equipment to a construction site as easy as possible, seamlessly, and if adding new technology is the way to do that, we will do that,” she says. RER

Sidebar

eBay bargains
From toys to computers to construction equipment, eBay provides an online marketplace for buying and selling goods, and for getting a good deal. For a website that began in 1995 as a collectibles site, eBay quickly grew into a buying and selling phenomenon that encompasses any and all collectibles and “practicals,” items used in day-to-day life.

“It was only a matter of time that we would evolve into business items because most people who are on the site are employed, so they work in a business and a lot of them have purchasing influence, and if they’re using eBay in their personal life, it’s only natural that they eventually they might look for a business item on eBay,” says Danny Leffel, category manager of eBay Business, San Jose, Calif.

There are advantages to rental companies in both buying and selling equipment on eBay. Buyers might be able to find obscure parts and items that are discontinued or otherwise unavailable. Sellers have the opportunity to reach a wide audience of buyers. eBay may also sometimes help form otherwise unlikely relationships.

“I think that rental companies are also using eBay as an opportunity to reach out and get new customers,” Leffel says. “Even when a rental company sells something that’s larger like lighter moving equipment such as a skid steer or backhoe through eBay, they’re oftentimes having that customer come into the rental store and pick up the item there, at which point the manager of the store or the sales manager is gaining an opportunity to meet a new customer that’s never been in that store before. And sometimes that results in forming a relationship that turns into a rental customer.” RER

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