Extensive time and planning go into the execution of an infrastructure project. A robust fleet management plan is essential, but it can be a challenging task for contractors. Cranes, big iron, pumps, generators and many other machines require organized management from a team of individuals. If just one piece of fleet is mismanaged, the inefficiency that results can trigger significant schedule delays.
No two projects are ever the same, and changing conditions often require shifts in the fleet plan mid-stream. This creates time-critical and unanticipated equipment needs. Renting equipment is a quick solution, although it can push the fleet plan off schedule and over budget.
When equipment needs become pressing, fleet management may not be top of mind. That’s when you can lose control of simple disciplines, causing cost overruns that reduce profit margins. Examples of this are leaving equipment on rent past its due date, duplicating equipment orders and hoarding equipment.
Here are three steps you can take to immediately improve management of your equipment fleet, both owned and rented. Each step will help you reduce costs and take control of your fleet plan, despite the unforeseen events that inevitably occur in infrastructure construction.
1. Expand Fleet Visibility
Mixed fleets made up of owned and rented equipment are a business reality for most contractors. Add the complexity of multiple jobsites and field offices, and you can end up not knowing what equipment you have, where it’s located, and if you actually need it.
It’s important to regain visibility by eliminating blind spots with a single equipment management system. This gives you a birds-eye view of all your owned and rented equipment, with immediate visibility into where your costs are assigned. It allows you to evaluate whether your equipment costs are necessary or excessive.
2. Tap the Power of Data
Contractors are increasingly adopting data producing and data processing technologies, including efficiency alerts, GPS technology, telematics and cloud-based software services. As project management becomes more data driven, equipment is valued as much for the information it can provide – location and utilization, for example – as for the tasks it performs. Every machine has a story to tell equipment managers through the language of data.
Companies are tapping into the power of volumes of data to better manage fleet in an all-inclusive way. This is known as equipment consumption management. Companies can track and control costs by maximizing utilization of equipment in hand to decrease waste and duplication before the invoices roll in.
3. Utilize Alerts to Keep Up-to-Date
Never rely on the invoice process to police equipment rentals. Electronic alerts and reporting are two of the most effective ways to stay up-to-date with utilization, but both are often overlooked. For instance, when a project foreman requests an excavator for three weeks, an electronic alert can trigger a fleet manager to take immediate action – either return the machine or extend the rental.
Everyone agrees that time is money, but people forget that the rental rate alone doesn’t equal the invoice: rate plus time does. The single most important and overlooked factor is the amount of time a machine is on rent. If it’s working or idle, needed or not, your cost is the same.
Do you have total control over your fleet program? If not, take the three steps of expanding visibility, tapping the power of data and utilizing alerts. By doing so, you can better control your equipment fleet and prepare for the unexpected, keeping your project on schedule and budget.
