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Rental Cost Reduction

A large railroad customer identified a rental process issue causing an excessive number of rental trucks to be out at any given time.

Fleet Background

A large railroad customer identified an issue with their rental process that was causing an excessive number of rental trucks to be out at any given time and 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.

 

Objective

The customer approached ARI in hopes that we could help them find a solution that would help reduce the number of rentals and the duration of each rental, and help them to better manage their rental process and costs overall. They challenged ARI to come up with a solution.

 

Approach

Our maintenance team, in partnership with the client and Enterprise, started on 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.

Effort between the customer, Enterprise and ARI.

Cut rentals from high 265 to 94.

$1,292,908 saving in year over year rental expenses.

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 taken 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.

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