Case Study: OCT Equipment

OCT Equipment offers construction equipment rentals and an equipment rent–to–buy program across three locations.

Industry: Car Sharing

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Cut Down Damage Disputes To Zero

“Record360 is a slam dunk for managing equipment and damage disputes.”

-Kurt Harris, Vice President IT & Rentals

The Background

As a business that both rents and rents–to–buy equipment, it was key for OCT Equipment to maintain their assets in excellent condition.

We have three locations that focus on renting out construction equipment and also keeping equipment in great shape for a rent–to–buy program. With this sort of business set up, we're focused on maintaining high utilization rates, strong ROI's on equipment and the right mix of equipment for our customers.

Unlike a lot of other rental houses, our inventory is in great shape and relatively new. It's only about 2–3 years old. It's paramount that we keep our equipment in great condition. If a customer comes in and wants to buy it, it needs to be ready to go.

The Problem

While focused on improving the check–in and check–out process, OCT Equipment couldn't develop a system that was efficient and effective. This was especially problematic as damage dispute claims could take a month or more to process, leaving equipment idle and taking a chunk out of monthly revenue numbers.

While we have to keep our equipment in great shape, that was easier said than done. We'd have dents, missing or broken pieces, and no one could track it down to where the problem originated. We absolutely looked at trying to improve the rental check–in and check–out process, testing everything from better paper forms to videotaping the process. I just didn't have the time and resources to develop a systemic process and share it with the team. I certainly didn't have the digital or physical storage space for all that video tape.

This had serious business implications. We averaged about one damage dispute every one to two months. Damages could be up to $3,000 to repair. Customers may have put insurance on that equipment, but we'd have to wait for insurance to cover the costs of repairs. That could mean an entire month, or more, of equipment lying idle while we're waiting for insurance to process the claim. That's a major hit on my utilization and ROI numbers.

The Results

OCT Equipment hasn't had a single damage dispute since using Record360. By spending 1–2 minutes assessing equipment at check–out, the business is able to recoup damage expenses faster, get the equipment back in the field sooner and not have to argue about who is at blame for damage, all while preserving excellent customer satisfaction.

Since we started using Record360, we haven't had a single issue with damages or disputes. Our team does a quick walk around, takes pictures, jots down notes and then the customer signs off. We're talking about maybe one or two minutes, at most.

What's great is that it doesn't matter if the customer picks up the equipment at our shop, or if a member of my team drops it off at their job site. Thanks to Record360's geo–stamping and time–stamping, it's easy to show a customer the equipment's condition when they received it. We can even drop a piece of equipment off at a customer's location if no one is around to sign off on it. The pictures we take and the emails our customers receive make it 100% clear that the equipment was dropped off in great condition.

Our equipment is often rented for at least two to three weeks, or even over a month. Long term rentals used to come back and we'd have to rely on anecdotal evidence about the equipment's condition. That's no longer necessary. We no longer have to negotiate who did what, or where it happened. We have great customer satisfaction and even stronger business performance.

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