How accurate are your customer re-bills?

Substantial cost savings can be made from effective Maintenance & Repair software

Real Asset Management’s (”RAM”) Repair4000 module is helping its customers to make substantial cost savings when re-billing customers for maintenance and repairs to equipment. 

Many companies are still using spreadsheet based systems to store M&R costs.  This method has significant drawbacks.  It is very difficult to extract customer re-billing data accurately and if revisions from depots occur regularly, the data cannot be easily updated and invoices to customers may not reflect all the relevant costs.  The administration time needed to improve this manual process is not always available and often invoices are estimated or left to the discretion of the depot.

The following calculations are based on an analysis of RAM’s customer data where the average re-bill invoice was found to be $150.  By identifying and then blocking the potential negative 5.2% variance,  customers that averaged 150 re-bills per year were saving $14,040 in that time.  Larger customers that handled 750 re-bills per year were achieving a staggering $70,200.

RAM’s Repair4000 system, which fully integrates with the Rental4000 lease management package enables the automatic generation of customer re-bill invoices and allows centralised billing for control over both costs and invoicing.  A dedicated M&R system will also reduce costs by cutting administration time and enabling managers to drill down amongst the cost data for detailed analysis, allowing them to monitor variances and make crucial adjustments.

The margin improvement that can be made by more accurate re-billing is just one element of the M&R process where intermodal customers are increasing unit profits.  By implementing a dedicated solution, organisations are also saving money by reducing turnaround time, cutting administration and using EDI transactions.  Look out for future articles on these topics for valuable cost savings.

For more information on Real Asset Management’s Repair4000 and Rental4000 modules, please contact solution@realassetmgt.co.uk