Rental Cost Reduction

A large railroad company uncovered an issue with its vehicle rental process that was leading to an excessive number of rental trucks being active at any given time.

Fleet Background

A large railroad company uncovered an issue with its vehicle rental process that was allowing their drivers to extend their rental vehicles significantly longer than needed. This was leading to an excessive number of rental trucks being active at any given time.

Objective

The customer approached Holman in hopes that we could help them better manage their process, with fewer rentals and shorter durations, and therefore reduce their overall costs.

Approach

Our maintenance team, in partnership with the railroad company and their preferred rental vendor, initiated a project to develop a new rental process. Over 18 months, we conducted countless calls and meetings that led to a successful solution and implementation.

The new process required the rental vendor to reach out to the railroad’s field location for supervisor approval on all rental extensions.

• Collaboration among the railroad company, rental vendor and Holman
• Reduced rentals from 265 to 94
• $1,292,908 year-over-year saving

Projected Savings/ Benefits and Results to Date

It was a collaborative effort between the railroad company, rental vendor and us that led to a majorly enhanced rental approval process. Within four months of implementing the program, the railroad reduced the number of rentals from a 265 to just 94, saving the fleet more than $1,292,908 in year over year rental expenses.