Every business needs to keep track of leased equipment to ensure the leases are managed accurately. Due to the fact that it is a time-consuming task, Companies fall slack in keeping proper track leading to loss of time and sometimes leading to extra cost!
Let us try and better understand what leased equipment tracking is and how it matters.
Why do we need Leased equipment?
As is obvious, leased equipment are those which are taken on lease or rented from a third party. This way the business is saved from the need to own costly equipment which may or may not be useful and even if it did, the recurring and operating costs and therefore the total cost of ownership.
There may be multiple reasons why the businesses rent instead of owning them.
The upfront cost of some equipment may be so much that it may not be a great idea to own them and then wait for the breakeven.
In some cases, it may be that it may be difficult to predict the scale-up needed e.g. laptop, printers. The number may change based on the number of people needed.
It may be equipment needed for a specific project or an order. It may also happen that the organization is trying a new venture or product which they may purpose further depending on the market response or sales.
What is leased equipment tracking?
Leasing equipment tracking, on the other hand, is the practice of keeping track of leased equipment. It can be utilized by both businesses and individuals (That company that is giving equipment on lease & that company that is taking equipment on lease).
The company lending the equipment (lessor) may have given a diverse range of equipment and items on lease. As a result, keeping track of each item and piece of equipment can be a difficult and time-consuming chore. This is where software for tracking rented equipment comes in handy for those in the business of renting equipment,
Imagine doing this on a spreadsheet, when you have thousands of assets that have been rented out and need to be tracked at multiple locations and companies. Such tracking would be tedious and time-consuming. What makes it worse is the fact that you can never be sure of how accurate it is at any given moment. It is crucial that there is proper tracking since these impact critical reports on which mandatory
In the event that the equipment is misplaced or stolen. The business that leased it will then suffer a significant loss as this would mean that there are production stoppages if the equipment is used, affecting the sales and deliveries. Additionally, they’ll also have to compensate the lessor for the lost equipment.
Benefits of Leased Equipment Tracking
As discussed above, the importance of tracking the Leased Equipment is undebatable both for the organization leasing it as well as the one that is lending it. Implementing Asset tracking solutions provide many benefits which may not be limited to just the leased equipment.
Let us look at some of the benefits derived from tracking the leased equipment:
Automation of Tracking
Using modern Asset Tracking solutions like the one offered by Quicsolv, one can automate the process of tracking equipment vis-a-vis underlying contract details and thus ensuring that the managers are able to efficiently use this equipment and manage the utilization.
With the collected data about rented equipment handling, IT, and data center equipment, there will be all of the necessary data and information in one place that will help identify cost-cutting opportunities by usage patterns and actual utilizations.
It will now be possible to accurately bill for usage for the rented equipment. If there is some breakdown and has been grounded it would be easily identifiable. Even if there is going to be a cost distribution between the departments, it would be possible to know which department has been using the equipment and for how long.
When you are using equipment tracking software that also provides the facility to schedule maintenance. Thus there will be no need to track each piece of equipment manually for maintenance. Not only sending alerts for maintenance but also keeping maintenance records of each piece of equipment becomes possible.
Thus tracking of the leased equipment is imminent and beneficial to both the lessor and the company who is using the leased equipment. Although the traditional methods may be cheaper and easier to fall back upon, it is important for businesses to realize that the world is constantly changing towards better ways of doing business.
Embrace solutions of Asset tracking which can give REAL-TIME value – enabling your business to operate at the optimum level while delivering to the customer’s satisfaction.
Connect with our team to understand better how our Asset Tracking System goes a long way in enabling you to take a business to the next level!!!