Maximise the benefits of short-term rental

The warehousing sector has seen explosive growth in the last 10 years as companies increase choice to satisfy individual needs. Logistics businesses need to maintain their flexibility, so you want materials handling services contracts that don’t have onerous penalties should you need to terminate the agreement or return any machines that have become surplus to requirement. This demand is changing the face of short-term hire, which is the growth area, and suppliers are responding by investing in their fleets.

Flexible contract

The big advantage of STR is flexible contracts – from as little as one day up to two years – that are tailored to suit individual customer needs. You can, for example, increase or reduce the number of trucks you hire to fit in with your own contract obligations or switch in or out of diesel, LPG or electric forklifts, to secure the best fuel option.

With a greater variety of equipment now available, STR fleets are capable of meeting a wide range of applications. In addition to the reach trucks, powered pallet trucks, stackers, VNA and order pickers within their warehousing range, many leading suppliers also incorporate articulated forklifts, tele-trucks, aerial access, sweepers, all-terrain utility vehicles and specialised heavy lifting trucks. 

The tender and capital approval processes for long-term deals can be lengthy, whereas in many cases short-term hire contracts do not have to be signed off at the most senior level, so ordering is quicker. Suppliers with regional depots and a dedicated delivery fleet can have trucks on site within 24h.  

High spec machines

Historically, STR was out of favour because fleets were typically comprised of old equipment with a tendency to breakdown, while users experienced difficulties finding the right truck to fit their specific operation, which can pose a threat to health and safety. 

Major suppliers are overcoming the high maintenance costs associated with poor reliability by investing in new machines with the latest specification. For example, since 2010 Briggs Equipment has invested more than £40m in its STR fleet, which now numbers more than 5000 machines. 

STR equipment is often used in pressurised environments, when demand is high and goods need to be moved quickly, so keeping fleets in excellent condition is a challenge. Briggs Equipment has a team of over 600 mobile service engineers nationwide to keep its customers’ trucks serviced and working at peak efficiency.

Some logistics companies are combating misuse of equipment by recruiting their own operators, rather than relying on agency drivers; others are implementing incentive schemes to promote safety awareness. Many are reaping the rewards of their investment in driver training – and retraining on a three-year cycle – which is bringing about a change in behaviour and reducing the likelihood of damage to stock and the risk of injury. 

Materials handling services providers inspect and service machines before they go out to the customer and when they come back from site and help to familiarise operators with equipment. Many suppliers also give customers the option to use the latest technology to reduce damage – and so lower bills – and improve safety.

Points to consider

•  Demand varies from machine to machine so hiring a class of forklift truck in its fallow season could be to your advantage.

•  Plan ahead – short notice is better than none to ensure you get the equipment you want, and better rates are available for longer rental periods, so anticipate demand to get the best price first time.

•  Discuss consolidating deliveries and collections with your STR provider – they may even be able to move fleets around the country for you – and look out for promotional and damage waiver offers.

•  Fit a telemetry system and use real-time information on fleet usage to off-hire unproductive units and notification about accidents to facilitate repair, reduce off-hire damage costs and take prompt corrective action with drivers.

When it comes to gaining a competitive advantage, hiring materials handling equipment on a short-term basis has an important part to play in helping logistics businesses improve productivity while maintaining low running costs and the safety of the warehousing environment.