Why Has the Role of Telematics Technology Become Vital in the Rental Sector?
As many of you may be aware, telematics is that part of information technology, which helps in the transmission of digital data over long distances. This technology uses satellite GPS or Global Positioning System and is fast becoming a part of the hardware of the future. If a company is in the rental market, one can only imagine the possibilities that telematics can bring to the business. Tracking equipment regarding the precise location, a detailed analysis of the way it is being used, and the fault codes are some of the possibilities that the use of telematics can offer.
Rental companies can leverage telematics to deliver equipment on time, increase the rate of utilization, analyze fault codes to improve operations and have live updates on the asset locations.
A look at the rental market for construction equipment:
The construction industry is a segment that uses the services of the rental companies for a substantial part of the equipment they require. The hardware they rent includes machinery of many types, tools, and specialized equipment for a certain period. In general, the market consists of entities who manufacture the equipment and those outfits who purchase the machinery and rent it to the construction outfits for the required time segments.
Moreover, the increase in construction activities is evident around the globe. Not just in fully-developed countries but also developing countries. Because of the investments pouring into this industry, research into this sector, especially regarding the equipment is essential to ensure progress and improvement. Some of the factors that make research important are the safety and obsolescence factors. Outdated machinery needs to be continuously improved and updated, which is also the reason why the construction industry likes to rent instead of outright purchase.
Let us look at the way telematics ties in with ERP. The data that telematics collects can ensure that companies can not only track the information about their data but analyze and report their data on ERP. The data is obtained from the tracking elements in the equipment and collated in the ERP system to provide insights. The unification of data to draw inferences and come up with actionable insights is something that the optimum ERP can facilitate.
You can easily track as many as 19 data points, and 42 fault codes, the notable among these include fuel levels, odometer data, location, count of loads, engine status, and much more. Additionally, you can only imagine the kind of planning and insights that such data from the ERP can help a rental company with.
Leverage the telematics data within your ERP to:
- Have an overview of all the equipment location
- Tighten up logistics to ensure that you factor in transportation in your delivery schedule
- Maximize the renting of expensive equipment with detailed and careful planning
- Help meet customer’s demands on time without compromising on costs
- Be proactive about maintenance and schedule it during slack times
- Study the usage patterns and the effect they have on the equipment life
With the right ERP, the use of the data and the subsequent insights from telematics are endless. It is an exciting time in the rental and lease segment with enormous scope for growth. Want to learn more? Download the free fact sheet below.