Rental Cost Reduction
A large railroad customer identified an issue with their rental process that was causing the use of an excessive number of rental trucks for extended periods of time.
A large railroad customer identified an issue with their rental process that was causing the use of an excessive number of rental trucks for extended periods of time. They knew it was an internal problem and that their drivers were keeping the rentals out significantly longer than needed.
The customer approached ARI in hopes of finding a solution that would help reduce the number of rentals, the duration of each rental, and help them to better manage the rental process and costs overall. They challenged ARI to come up with a solution.
Our maintenance team, in partnership with the client and Enterprise, initiated what would turn out to be an 18-month project to implement a new rental process. Over 18 months, there were countless calls and meetings that led to a successful solution and the implementation of a new rental process. The new process required all rental requests to have supervisor approval from the client and all rental extensions required Enterprise corporate to reach out to the client’s field location directly for authorization to extend the rental.
Projected Savings/ Benefits and Results to Date
It was a collaborative effort between the customer, Enterprise and ARI that led a majorly enhanced rental approval process within ARI’s maintenance parameters. Since implementing the program, the client has reduced the number of rentals from a high of 265 in August 2014, to just 94 in December 2014, saving the fleet over $1,292,908 in year over year rental expenses.
ARI Buy Direct
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