Reducing costs associated with the maintenance and repair process

Using a specialist system to manage the maintenance and repair (M&R) of equipment such as tanks, containers, trailers, reefers and IBC’s will promote efficiency by minimising the downtime of both leased and owned units.

There are many ways that operators and lessors can reduce costs using this type of software.  The process of monitoring the turn time of equipment is completely automated, ensuring that units are ready promptly for the next lease or job.  One RAM customer estimated that to capture and report on turn time manually took 5 days per month, wasting around $5,000 per year.

These automated reports can flag up and automatically re-allocate costs from third party suppliers and highlight depots or repair workshops that provide the most efficient turnaround of units.  Importantly, they ensure that all costs are charged to the end customer.  Some examples of the impact on unit revenues reported include over $10,000 per year on recharges that would otherwise have been missed and a similar amount saved in administration costs.

It is also estimated that one out of ten contracts has missed DPP (Damage Protection Plan) coverage. As this is automatically transferred from the contract part of the Rental4000 module to Repair4000, RAM’s customers have reported savings of $1,000 for every ten contracts.

Furthermore, effective management of the M&R process reduces the chances of unknown manufacturing defects. If just 2% of a 10,000 unit fleet had a $50 repair defect, the elimination of such defects would save $10,000 per year.

By implementing an effective maintenance and repair system, users can boost unit profitability in an increasingly competitive market.

Look out for further M&R cost saving examples on the intermodal blog.  To find out more about Repair4000, please request a brochure by contacting Nicola Byers at solution@realassetmgt.com