It's All In the Web

Feb. 1, 2000
E-commerce is having a tremendous effect on the way we conduct business. So the big question is not if e-commerce will play a role in the rental industry,

E-commerce is having a tremendous effect on the way we conduct business. So the big question is not if e-commerce will play a role in the rental industry, but rather, when.

Today more than 23 million companies in the United States employ fewer than 500 employees. Of these companies, over half have access to the Internet, and that percentage is growing rapidly. Some estimate that e-commerce business-to-business currently generates $115 billion in annual sales. Studies show that number will double to $300 billion by 2000 and an astounding $1.1 trillion by 2003.

A recent client survey that was composed mostly of rental industry customers supports these estimates. Of those surveyed, 50 percent said they would access financial services online if they were available.

Today a rental customer can look up a manufacturer's Web site, place an order for equipment, complete a short credit application and within minutes have a credit decision in their hands. Upon approval, a purchase order would be provided to the manufacturer, and finance documents would be automatically e-mailed to the customer. It's that efficient.

As we move into the new millennium, the rental industry, including equipment manufacturers and financial companies, will face growing economic concerns. In order for companies to maintain profitability even with decreasing margins, we must strive to become more efficient in the way we conduct business. Companies that are not adjusting to the changing climate will stand to lose market share.