Telematics Empowers GSV To Gain Greater Value From Equipment Rental Fleet
Trackunit has enabled Denmark’s largest rental business to initiate behavioral change in customer utilisation of equipment. By analysing data on how, when and where equipment is used, revenue is being increased and the equipment lifecycle extended.
Founded in 1964, GSV is one of the oldest rental companies in Denmark. With the 2016 acquisition by Catacap and merger with Danish rental company Pitzner, GSV is now the largest rental company in Denmark as well with a headcount of around 300 spread across 15 offices throughout the country.
GSV works within a broad variety of clients across the spectrum of the construction industry, and provides a rental product range that includes every conceivable piece of equipment from electronic instrumentation to large dumpers and everything in between.
Being a rental company, GSV’s business focus is to extract the maximum value during the lifetime of the equipment in their fleet at the same time as meeting their customer’s requests for high-quality rental equipment.
“Using data driven insights we can educate our customers to report on parameters like damages, overload and overuse when returning the equipment. The information provided by telematics makes our invoicing way more accurate,” said Henrik Malthe, Rental Assistant and Insurance Responsible, GSV.
Using telematics to make things transparent between GSV and its customers has resulted in hirers being a great deal more accurate about the actual usage of the equipment they plan to rent. All tools and equipment are designed for certain purposes, but often they can be used to perform a lot of different construction work.
The fact that the customer is being honest about the kind of work for the equipment will be used, empowers G.S.V. to meet the customer’s needs in a more precise manner. For example, GSV might offer older, used equipment at a lower price if the customer is planning demolition work with equipment that’s been hired-in for ‘digging.’ This benefits both the client and GSV.
Monday means money
Every Monday morning Henrik goes through the weekly data reports in the Trackunit Manager over a cup of coffee. Each report provides him with an explanatory and precise overview on how his customers have used their equipment throughout the past week.
“In the beginning, I used to personally call each customer and clarify the information the reports gave me. I did so to clarify any misunderstandings or disagreements there might be about the invoicing as soon as possible. But our customers have quickly learned to trust the data, so I don’t have to make these calls anymore. I can simply go through the reports while enjoying my morning coffee,”Henrik Malthe, Rental Assistant and Insurance Responsible, GSV
Telematics being the competitive edge
Before the implementation of telematics, GSV charged based either on individual customer agreements, or by simply making a blanket charge for use based on a nominal eight-hour day. Neither solution was ideal. With the individual agreements, it was challenging to follow up and check whether customers had honoured the agreed usage of the equipment.
With the blanket charge it was clear that customers rarely used equipment for exactly eight hours a day. This meant that both options for rental charges were inflexible and a potential threat to both company revenue and customer satisfaction. Today, the implementation of telematics has shown to be an efficient and simple solution to gain insight on the precise usage of the equipment.
The Trackunit telematics solution provides a complete overview for each piece of equipment, which makes it possible for GSV to charge their customers based on the actual usage instead of relying on out-dated agreements. This has led to increased customer satisfaction due to flexible and fair invoicing.
“The system gives us a very detailed overview of the exact utilization of our equipment. Before the implementation of telematics, we charged our customers based on outdated parameters. But data driven insights enable us to make exact charges according to actual hours – even during evenings and weekends”Henrik Malthe, Rental Assistant and Insurance Responsible, GSV
With the Trackunit telematics solution GSV has increased its revenue significantly hitting €87 million in 2015, while gaining valuable knowledge on how their equipment is used. This knowledge enables GSV to proactively extend the lifetime of its hire equipment by determining proper maintenance intervals based on actual usage instead of loose time estimates of how many hours the machine has been running. The way the machinery has been used during the given period has a huge impact on how maintenance is performed – meaning that costly breakdowns can be avoided. GSV has a data driven opportunity to ensure, that their equipment keep the same high-quality standard throughout the entire lifetime.