The question should be, whether it is even possible to completely forecast what the demand is going to be in any sector? The answer is no; you cannot estimate demand, at least not perfectly. However, there are many ways in which you can predict the demand to a large extent. While most businesses, especially in the rental sector, would be delighted to forecast demands absolutely, even an indicative forecast can help to a large extent. We are going to be talking about how you can start forecasting the demand trends for your rental business.
Predicting the demand for your rental business, can not only help you plan your operations and inventory management but also other aspects like investment, expansion, and logistics.
Here are some ways you can ensure that demand forecasting no longer poses as a roadblock to your rental business:
Dig deep into past trends: One of the simplest ways to get on the right track with the future is to learn from the past. Trends have a way of repeating themselves, and they are easy enough to spot once you know what you are looking for. For instance, if you see a marked increase in the rental of construction equipment during summers, you know it is because construction companies find the weather more conducive during those months. And with such trends, your planning can become more accurate.
It is called business intelligence for a reason: When your rental business relies on a rental solution that offers business intelligence, you need to leverage it to come up with insights. BI or business intelligence is not just a good-to-have in today’s world but an essential tool to help you prepare for the onslaught of what the future and your competition hold. What you need is a rental solution that has in-built graphical dashboards, the option to generate overview dashboards, business intelligence, mobility, and IoT.
Image 1: Example Daily Fleet Analysis report in DynaRent for Microsoft Dynamics 365
Use technology like IoT to help you: Today, IoT or internet of things is a way not only to merely track of asset movements but also as an indicator of usage. When you put together the information transmitted through your IoT devices, you will find clear patterns and trends emerging that can help you forecast demand. We have put together an ROI calculator so that you can have a clear view of the savings and revenue increase that your company can gain by using IoT.
Look at your repair and maintenance records: When you are in the rental business, repair and maintenance is a vital part of your operations. And this aspect can be an important indicator of the demands. Let us explain; when a particular asset is in high demand, there is a chance that you may have had to do reactive maintenance due to high usage. When you look at the records of repairs and maintenance, you will be able to see a clear trend coming through.
Image 2: Example graphical plan board in DynaRent
Leverage those customer touchpoints: Customers are at the center of any business; not only are they the movers of your business, but they also provide you with a lot of important insights. When you are in contact with customers, you will get an immense amount of information. For instance, any of the forums and sites that your typical customer spends time on can provide valuable insights. Another important source is your field staff who interact a lot with your customers. Their notations from the field on your rental solution can provide you valuable insights.
Are you seeking a rental solution that can do all this and more? Click here to visit our solution page for more information on how our rental solution can help you in demand forecast and other aspects of the rental business.