SmartEquip celebrates 3 millionth online parts order
17 March 2009
Brad Coverdale, director of product support at Sunbelt, told IRN that the system had been fully operational at Sunbelt since October last year and that it had processed 20000 parts transactions valued at US$6.5 million using SmartEquip.
Mr Coverdale said the system typically saved three to five minutes for every transaction and that the company was currently processing about 250 orders a day. He told IRN that by fiscal year 2010 Sunbelt hoped that 60% of all transactions would be via the SmartEquip channel. "The potential is for multiple millions of dollar savings", he said.
The system provides a single portal for rental companies to source parts from all manufacturers who are signed up to the system. SmartEquip affiliated OEMs now include Muiltiquip, JLG, Manitou, Wacker Neuson, Deutz and, most recently, Terex's Aerial Work Platform (AWP) division.
Mike Howlett, president of Multiquip's general construction division, told IRN that a major benefit for OEMs was the accuracy of order placing; "For us that's a big deal. We were experiencing a large number of returns, and repetitions [of errors]." He said it meant that Multiquip could handle a big increase in parts volumes without having to increase personnel. Fifty percent of its parts orders are currently handled through SmartEquip and Mr Howlett said ultimately it could reach 60-65%.
Alex Schuessler, SmartEquip's chairman and chief executive officer, said the company had seen a rapid upturn in parts transactions through its system in the past year; "We believe this growth was in part driven by the severe economic downturn and the imperative for manufacturers, dealers, and fleet owners alike to capture immediate cost savings.
"As a consequence, in the closing quarter of 2008 our business saw a 3X revenue increase from OEM's joining the network relative to the same period the prior year."
