Back Ordering, Linking Purchasing to Rental & Sales
We introduced back to back ordering for sub-rentals (or re-hires) a long time ago, in order to provide traceability between rental contracts and vendor deliveries and schedules. However in the current economic climate using back-to-back orders to manage just-in-time ordering for less frequently used parts and for ordering larger equipment and machines is becoming more and more popular. The cost of keeping unused or rarely used parts on the shelves, or having equipment standing waiting for sale, is simply too high when business is slow or volume is reducing.
The first customers to use back-to-back ordering for long term rental and for sales were computer and electronics rental companies, where the technical life of the product means that having something on the shelf too long, may mean it is technically obsolete by the time that the sale or the first rental comes along. For these companies being able to wait for a Sales or rental quotation to be confirmed before ordering the equipment makes a significant difference to their asset management.
Now, equipment and tool rental companies are increasingly looking at just in time ordering where vendors can provide a reasonable lead time on deliveries (although obviously with items such as cranes, ordering on this basis is simply not practical!).
From a “green” perspective, ordering when a sale is confirmed and asking the vendor to deliver direct to your customer may also save on transport miles (the asset ends up on the road once not twice), and therefore help in carbon reduction planning. This is also true of sub-rental deliveries if the asset can be delivered directly to your customer and not via your own location.
rentalresult provides back-to-back ordering against rental, sales and work orders allowing you to order items for sale or rent from vendors when you actually identify a direct need. The key benefits that customers identify are:
* Efficiency improvements in tracking orders against requirement dates
* Reduction in transport costs
* Reduction in stock obsolescence issues
* Reduction in Dead Stock
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