Heavy Equipment Manufactures

On the lookout for identifying strategic business opportunities is the key to Growth in any Industry. Technologies are unlimited, so is Data! For businesses to be stable and gain a competitive edge, strategies need to be effectively implemented and evaluated based on critical insights. 

Business Intelligence (BI) is a game changer in the sense it can handle huge amounts of data which comes in structured and unstructured forms. BI technologies are capable of identifying, developing and interpreting this big data to discover strategic business opportunities in many industries, especially Manufacturing. BI can help in optimizing material handling process in Heavy equipment Industry. BI provides key insights into the following aspects that constitutes material handling operations:

  • Project Management Reporting
  • Service Contracts
  • Fleet Utilization
  • Branch Performance.

 
Relevance of Customer Data

Collection, Interpretation, Analysis and Reporting of Customer Data is the starting point of any efficient BI process. Attempts to do guess work by estimating something before collecting and analysing entire details and information would cost you time, money and effort. This reduces Business efficiency and BI helps to avoid this pitfall.

Data mining and precise reports based on client’s business situation can open up multiple business opportunities like cross selling and upselling. BI can also suggest ways to improve customer service by improving processes and offering value additions. For this, reports based on customer data is crucial and BI dashboards allow clients to have a detailed view on all processes and improvement outcomes. 

Material handling equipment data is a treasure which needs to be scrutinized because it throws light to various facets of numerous business opportunities. BI technologies are often used to arrive at decisions which improves labor efficiency, equipment productivity, enhance inventory.

Accurate Visibility into the Equipment

Inventory management and maintenance is the most tedious process which also involves costs. Data driven BI dashboards gives a clearer picture on the details of equipment and alerts the user about maintenance schedules and cost ratios. Heavy machinery equipment rental software can suggest the best solutions when there is an emergency which ensures work is not affected and there are no productivity lags.

Business process Optimization

Continuous process Re-evaluation and improvement is the key to profitability and productivity. Different methods are tried out to improve processes in a consistent manner. Advanced analytics can interpret data if BI methods are applied in a predictive manner. Reports based on observations derived from BI strategy is shared across different departments because decision making is a collaborative effort and not to be done in isolation.

Profit drivers of clients can be identified easily with consistent BI evaluations and solutions to be offered proactively. This would win the trust of clients who have faced all kinds of losses in the past. The results of BI studies would help them prevent further pitfalls. For instance, failure of one piece of equipment can lead to revenue loss in billions based on severity of the project. BI helps to identify faults proactively and steps can be taken to repair and re-align operations to ensure smooth flow of operations. This has a direct impact on productivity and prevents unnecessary losses.

Data and reports which can be easily interpreted in the form of user-friendly reports adds on to Quality BI. Clients may not always have the patience to go through tedious reports, especially when they are facing numerous business challenges.

Service Contracts and Fleet Utilization:

Tracking profitability of various service contracts is a time-consuming task. Organized dashboards can make this task simpler. BI can design systematic dashboards to track processes and profitability – Preventive contracts, Full-Service agreements, planned maintenance, Time and material and total maintenance and repair. Data driven dashboards which are easy to interpret is the main window which communicates to the client as to what you can offer.

Complete utilization of Fleet services would ensure profitability. Understanding fleet based on category class and individual equipment level details improves the efficiency of each product line.

How BI can impact the future of heavy equipment industry?

Optimized decisions would help Heavy Equipment Industry, and this is possible by applying Advanced analytics and BI technologies. “The global heavy construction equipment market is estimated to reach USD 166.05 Billion by 2020, with a projected CAGR of 6.80%, signifying a steady increase in the demand for heavy construction equipment.” – Markets & Research. Source: https://competitiveanalytics.com/heavy-equipment/

From a technical viewpoint, BI may seem like just another Analytic and Business Reporting tool, but the fact is it has a much wider scope. BI influences Business Decision Making, and it brings out insights from almost all the departments. Business Intelligence Consultants continuously apply a series of concepts and specific methods to improve Business Decision Making.

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Industries across the globe are overloaded with information today. They generate huge volumes of data from their day to day business operations. One major challenge faced today in the Heavy equipment dealer industry is the inability to capture some of the key business metrics which can be a huge differentiator to the business.

Although not all pieces of information are critical for making crucial business decisions, there are a few metrics in this industry which we should regularly measure and monitor. Heavy equipment dealer industries leverage software to capture these metrics. And this software includes ERP systems, BI and analytics, CRM, etc.

In this article, we will discuss the most important metrics that we should measure and monitor to make informed decisions to manage the parts and inventory department.

Machine Inventory Status

Salespersons and marketers in your organization should be aware of the available units for each make and model. It will be helpful if the heavy equipment management software displays the book value and sales price of each make and model along with its availability.

Parts Inventory Status

The parts department of your organization should be aware of the performance of individual machine parts with their turnover over time. This information is valuable in making decisions regarding which parts should be stocked and promoted more and which should be immediately sold.

Invoiced Revenue

Organizations must have a mechanism to keep track of the revenue that has invoiced over time for each customer, store, and model. This data helps dealers to drill down to the transactional level details and make informed decisions.

Customer Value

Understanding the revenue generated from each customer, how often they’ve been invoiced and their gross profit percentage will be of immense help to the dealers. This information can be used to compare customer segments and locations for gross profit percentage.

Department Gross Profits

Track gross profit generated by parts, rental, services, and sales department. The software used in your organization must be able to drill down the department-wise information to store and locations.

Financial Ratios

Track core financial ratios like ROA, current ratio, debt to equity ratio over time to compare the financial position of the organization to the past history or to other businesses in the heavy equipment industry.

Due Amount by Customer

This metric helps to identify the receivables and due amounts of each customer . If this metric is displayed along with the salesperson servicing each customer, organizations can manage the receivables by customers in a systematic and hustle free manner.

Seasonal Trends

Seasonal trends are bound to appear in any business. The software used in your organization must be able to track seasonal trends observed in the Balance Sheet and filter the same by department, accounts, and stores.

Days Rented

Organizations should be able to track down how many days they have rented out machinery by the model of machine, store, and customer. It will be useful to have a time segment along with this feature in your software, to drill down to a specific time period of your choice.

Rental and Service Metrics

These are few metrics useful for rental and service departments like Invoiced Rental Revenue, Rental Revenue, Maintenance-to-Income ratio, Potential Rental Days, Maintenance costs allocation

If you are in the heavy equipment dealership, rental or service industry, redefine your business model by using advanced heavy equipment dealer software to manage the day to day activities and make informed business decisions. Nuvento is the frontrunner in developing advanced business intelligence solutions in the United States. Contact us to find our customized solutions to manage the business.