Equipment rentals are an essential part of oil and gas operations. Renting equipment cuts cost and maintenance expenses, lets renters test out the latest technology, helps get specialized equipment, and more. With all the plus sides of renting equipment, the management of rental equipment becomes a vital component of having a successful rental experience. When rentals are managed poorly, it can turn into something that eats away at profits and creates headaches instead of solving problems.
In this post, we’ll explore how blind spots in your rental management can stick you with a costly bill and we’ll discuss a few methods on how to manage your rentals to create the best possible rental experience.
How Poorly Managed Rentals Can Eat Away at Profit
While many factors contribute to ensuring a smooth rental experience, such as proper market evaluation and employee training, managing rentals as oil and gas operators is a huge part of making the rental successful.
For example, an operator is trying to coordinate rental equipment and their own equipment across dozens of different sites and yards. At one of the sites, the operator rented a piece of equipment and didn’t properly track what site it went to. After the rental equipment was used for the specific job, it was put to the back of the site, where it sat unused for months. Finally, someone noticed that it's a piece of rental equipment instead of owned equipment and called to have it be picked up. Now the operator gets charged for months of extra time.
This scenario could happen for a variety of reasons. It could be that the equipment was assumed to be a company-owned machine by the people on-site, a lack of communication between the site and the office, or simple forgetfulness from a lack of tracking and rental management. Either way, when rental equipment sits idle, it cuts into the revenue from that well.
How can you prevent scenarios like this through rental management?
How to Manage Rental Expenses
Spreadsheets and a Lack of Tech
The oil and gas sector is behind when it comes to implementing technology for the back-office. As Lance Richardson, COO and President of Hitched, writes in the article Industrial Technology Solutions Have Failed Us:
“Our industry is no stranger to innovation. Developing and revolutionizing how we get resources out of the ground is at the heart of oil and gas. And sure, we’ve stepped up our game in making the most of GPS and RFID tech in the field, but bringing innovation to the back-office is practically nonexistent. I’m talking about those time-consuming, complex processes that fill our days with menial work. Things we do every day, like managing our job sites, sourcing equipment, tracking quotes, and the like remain completely unaddressed.”
Managing rentals is undoubtedly a part of the time-consuming tasks for back-office operations. Traditionally, without the help of software, managing rentals, expenses, and tracking equipment locations all happened in spreadsheets. This means that someone is manually updating rentals, what provider, costs, locations, and more. When there is no real-time data and the office is relying on communication from different sites, there are bound to be mix-ups.
Manually updating spreadsheets wastes time, energy, and ultimately cuts into your bottom line by causing inefficiencies. The way to fix this is to implement rental management software. While rental software capabilities can vary from provider to providers, there are some key characteristics that you can look for:
- Organizing your own assets and rentals by job site or yard
- Streamlining the quote process for rentals
- Allowing you to evaluate the rental market to find new providers
- Giving access to every person necessary to update and view rental information
Overall, rental management software helps you gain insight across your operations and easily track all your rentals and assets.
Not All Tech is Made Equal
You may have already tried a rental management software, and it wasn’t great or extremely hard to use (or maybe both). And that is because there has been a problem with the software in the oil and gas sector. The software in the oil and gas industry has been stuck in the early dotcom era when it comes to capabilities and user experience. As a result, these applications often feel archaic and clunky—and even worse, many are slow, bloated, and convoluted.
But recently, there has been a shift in the software available to oil and gas companies. New technology is solving tedious tasks and problems by being intuitive and easy to use.
Which is exactly what we pride ourselves on here at Hitched. We build every aspect of our platform with convenience and comfort in mind. Hitched simplifies the complex process of site, rental, and asset management in a single, easy-to-use platform.
If you are interested in learning more about the Hitched platform and how it can help manage and simplify the rental process at your company, we’d love to chat with you. Schedule a demo today right here.