To have a correct understanding of business processes within the rental industry, it is important to use definitions in the same context to assure one is talking about the same subject. We will describe the differences between the various rental variants that are commonly used in the rental industry.
In the rental industry we can roughly identify 3 main types of rental processes: bulk rental, serialized rental and project rental.
Bulk rental is the process of renting equipment without a unique identification number, such as: scaffolding, party equipment, tools, audio & video equipment or equipment within the oil and gas industry
One rental object can have multiple available items, it is a 1: N relation (each rental object however will have one related fixed asset). For example, Item number “Scaffold Galvanized Tube 21 Ft” can have 100 available pieces in warehouse 11. Each “bulk” transaction in RMS can be executed without the need of registering unique identification numbers per piece. Only total amounts will be entered in the system and RMS should just check if there is enough availability for a specific item in a specific warehouse.
Bulk Rental Process
- Create via the regular way a rental item in RMS, only assure to select a Tracking dimension group without serial number control activated.
- Purchase the equipment via the regular Purchasing flow in RMS. The only key differentiator for bulk is during the activation of the fixed assets. When activating a bulk asset RMS will behave as follows:
- You have the following PO: 1 PO for item Bulk 1 with a quantity 100
- When activating these items, 1 fixed asset for item bulk 1 is created with a value line of 100 pieces, the value of the value line is the invoice value of Purchase order invoice.
- The creation of a rental quotation or rental order can be done via the regular process flow in RMS. During the picking, packing and shipping process of bulk items it is not required to register serial numbers. You can only check availability on a high level, allowing you to see the available quantity per warehouse.
Bulk rental challenges
- Bulk availability per depot/warehouse
- Combination of bulk, serialized and kit on one rental order
- Partial deliveries
- Bulk corrective and preventive maintenance
- Bulk return process
Serialized rental is the process of renting equipment with a unique identification number, such as: power generators, containers, aerial work platforms, trucks, cars or mining equipment.
Each rental object is related to one fixed asset and one unique identification number, such as: license plate number, chassis number, random generated unique serial number. There will always be a 1:1 relation between a fixed asset/Service object/Rental object. Each serialized transaction in RMS can only be executed when the serial number is filled.
Serialized Rental Process
- Create via the regular way a rental item in RMS, only assure to select a Tracking dimension group with serial number control activated
- Purchase the equipment via the regular Purchasing flow in RMS.
- You have the following PO: 1 PO for item serialized 1 with a quantity 10
- When activating these items, 1 fixed asset for each quantity is created, the value of the asset is the invoice value of Purchase order invoice.
- The creation of a rental quotation or rental order can be done via the regular process flow in RMS. During the picking, packing and shipping process of bulk items it is required to register serial numbers. You can only check availability on object, this allows you to see the availability over time per individual object per warehouse/depot
Serialized Rental challenges
- Object availability over time per depot/warehouse
- Delivery and pick-up processCorrective and preventive maintenance
- Object location
- Object meter value`s
- Supplementary rental
- Alternative rental
Project Driven Rental
The project driven rental process starts with a high-level calculation to make a first estimate of the costs and revenue to execute a project. In the calculation phase high-level estimations are made to offer a prospect a project budget. In this calculation all required elements will be added together in order create one overview. This calculation will be sent to the customer and then the customer can decide to start or decline a project.
With project rental multiple rental orders are linked to one overall project. On this project all relevant cost and revenue transaction are gathered. With the Standard AX project invoice engine, it is possible to invoice the correct charges to the customer, invoice possibilities are for example: time and material, fixed price or milestones.
Underneath you can find a diagram of a flow for project driven rental.
Maybe you are experiencing challenges to find a software solution that fully supports your specific company rental needs. In such a case, feel to contact Dynamics Software to see if we can provide any assistance.