Identifying the gap - United Rentals

United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.

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Identifying the gap Benchmarking to drive better

utilization and performance


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Summary

Benchmarking has been an approach used within

businesses for a long time to compare operations

and performance, and identify strengths and

weaknesses. In this class you’ll get a firsthand look

at United Rentals’ industry-first benchmarking

service, what the scores mean to your business and

how to quickly put them into action.

1. How are the benchmarks developed

2. What do the scores say and metrics indicate

3. Steps to developing an action plan


Remember when?

The report card The bell curve

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How about today?

Real-time results Progression report card

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Benchmarking defined

• Comparing one’s business processes and

performance metrics to industry bests and

best practices from other companies.

• Dimensions typically measured are quality,

time and cost.

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Starting from the top

GPA: Measure of overall performance

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In the trenches

Scores: how well did we perform on individual components

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What impact does performance have on our business?

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Performance to

Peers

Potential Savings

Impact

Spend at Peer

Benchmark

Spend per Category


Benchmark development

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1

Evolution of TC benchmarking

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PHASE 1 2000–2013

Benchmark by customer

Analyze own transactions

Deliver analysis in KPI meetings

Manual pull of data for customer

PHASE 2 2013–2016

20 benchmarks

Analyze equipment category

Incorporate in KPI meetings with live stats

Deliver inside Total Control Reporting

Manual pull and automated display of data for customer

PHASE 3 2016

140 benchmarks

Analyze equipment category and customer segment



Automated analysis delivered to customer in KPIs


Gaps in current benchmark process

• Type of work being performed.

• Electric versus fuel powered

machines in same category.

• Short-term versus long-term

rental performance.

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Feedback

Different jobsites, different utilization

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Type of work the

customer is

doing:

8 verticals

assigned based

on the United

Rentals Jobsite

Vertical Allocation

Model

Contract duration impact

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Duration of the

rental:

Short term rentals

typically are used

to tackle specific

work on site.

Holding

equipment long

term makes

financial and

logistical sense in

most applications.

Same category, different performance

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Type of

equipment being

used:

Size of the

machine has an

impact on how

much use it sees

due to several

factors including:

cost, scope of

work, task

dependency

Evolution of TC benchmarking

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PHASE 1 2000–2013

Benchmark by customer

Analyze own transactions

Deliver analysis in KPI meetings

Manual pull of data for customer

PHASE 2 2013–2016

20 benchmarks

Analyze equipment category



Manual pull and automated display of data for customer

PHASE 3 2016

140 benchmarks

Analyze equipment category and customer segment



Automated analysis delivered to customer in KPIs

PHASE 4 2017+

Thousands of benchmarks

Analyze equipment cat class, duration and type of jobsite

Incorporate in KPI meetings with customized goals

Delivery inside TC App, Dashboards, Reporting and Smart Alerts

Leverage Enterprise Data Warehouse to automate delivery of KPI

Data data everywhere

UR

GPS Data UR Transactions Customer Data

Owned

Fleet

Rented

Fleet

Leased

Fleet

How it works

Benchmark

Service

Single

Score

Smart

Alerts Dash-

board

Total Control

Benchmarking

Engine

UR GPS Data UR

Transactions Customer Data

Easy

Levers

Desktop

Mobile

Pilot

Projects


Developing an action plan

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2

5 criteria that define a project management goal

SPECIFIC

Objectives have

to be specific and

positively described.

MEASURABLE

A goal

achievement

should

be measurable.

ATTAINABLE

It should be

attractive for the

project team to

reach the goal.

REALISTIC

The objective needs

to be achievable in

a realistic way.

TIME-BOUND

The goal has to

have a time frame.

S M A R T

Plan for success in advance and drive accountability

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1.What objectives are we influencing

2.How does our strategy impact those

outcomes?

3.Who is responsible?

4.When can they take immediate

action? Metr

ics

KP

I

Strategy

Measurable

Objective

Outcome

Task

Action


Example action plan

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Metr

ics

KP

I

Rental Consumption

Equipment

Budget

Bring Project in

on Budget

Utilization

Low Utilization Alert

Duration

Order On Time Past Due Alerts


Are we effectively managing the return tail?

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Pop quiz: How many scissor lifts did we really need?

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Extra Credit Question: How well do you think this customer performs overall?


Great performance, with opportunity to improve

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Boom Lifts Welders Scissors

In Use

In Use

Savings? Savings Opportunity? Savings?


How to get started

• Setup a Benchmarking Review with your Account Manager

• Identify an upcoming project and willing leaders

• Start communicating ahead of time: • Project goals

• Objectives

• Equipment plan

• Identify the consumption management strategy

• Establish cadence for team KPI meetings

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Plan to succeed

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“You must have a game plan. If

you aim at nothing, you will hit it

every time”

– Dave Ramsey & Zig Ziglar

Planning

Proactively

share equipment

plan, forecast

and changes

Agree to KPIs

up front

Setup TC in

advance with:

users, alerts,

reports

Communicate

Agree to

cadence around

delivery

of KPIs

Identify areas for

improvement

and socialize

wins

and learning

“I have a plan of action, but the

game is a game of adjustments.”

– Mike Krzyzewski

Before we jump into case studies,

Questions?

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Case study: Executing an action plan

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3


Ethylene plant development project

Phase I • Each subcontractor was responsible for equipment

• Overcrowded site

• Multiple sales, delivery and service vehicles

• Price constancy issues

• Middle markup

• Duplicate and underutilized equipment

Phase II • CM manages equipment

• Reduce traffic

• Consistent and accurate billing

• Middle markup avoided

• Share equipment across subcontractors

• Proactive consumption management

• Quantifiable cost savings in first two months

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Spend and performance

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Eq. Category Rental

Spend

2016

Utilization

Project

Utilization

% to

Benchmark

Spend at ’16

Benchmark

Utilization

Savings

Lifts – Boom $200,545 15% 23% 153% $307,502 $106,957

Welders $15,480 75% 57% 76% $11,765 ($3,715)

Lifts – Scissor $12,736 1% 24% 2,400% $25,472 $12,736

Utility Vehicles $3,158 13% 17% 131% $4,130 $972

Lighting

Equipment $3,091 44% 37% 84% $2,599 ($492)

Air Compressors $2,020 13% 14% 108% $2,175 $155

Generators $822 149% 22% 15% $121 ($701)


Solar Farm Sees The Light

Performance to Benchmark

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-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

• 4 x 75 Megawatt Solar Farms

• Aggressive Time Frame

• On site tool rooms

• Weekly Utilization Review

• Monthly KPI Meetings • Forecast

• Early Return Reccomendations

• Lead Time and Delivery

• Service


Spend and Performance

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Category Rental

Spend

Industry

Benchmark

Project

Utilization

% to

Benchmark

Spend at

Benchmark

Utilization

Savings

Skid Steers $249,528 27% 59% 217% $499,056 $249,528

Reach Forklifts $224,854 27% 58% 214% $449,708 $224,854

Utility Vehicles $194,334 14% 23% 165% $321,008 $126,674

Excavators $141,968 44% 53% 119% $169,461 $27,493

Dozers $82,380 29% 41% 140% $114,928 $32,548

Wheel Loaders $68,490 32% 29% 89% $60,812 ($7,678)

Mini-Excavators $73,098 31% 26% 87% $63,378 ($9,720)

Ride-On Rollers $71,603 12% 26% 224% $143,207 $71,603

Rough Terrain Forklifts $15,967 18% 34% 187% $29,862 $13,895

Total $1,122,222 $1,851,420 $729,198


Plan to succeed, succeed with a plan

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Key takeaways

• Understand your score

• Identify areas of focus

• Start small, fail fast, learn, adjust, grow

• Implement a S.M.A.R.T. Action Plan

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Questions?


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Identifying the gap Benchmarking to drive better

utilization and performance

Identifying the gap - United Rentals

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