WHEN SHORT-TERM RENTALS MAKE SENSE

From warehousing and logistics, to mining, Fast Moving Consumer Goods (FMCG), manufacturing, pharmaceuticals and agriculture, short-term rental solutions for material handling equipment can be game changing for operations with fluctuating or cyclical needs.

That said, businesses need to carefully consider who they partner with to ensure they have access to flexible contract options, quality machines, excellent technical support and fleet availability.

CFAO Equipment’s National Operations Manager, Bianca Smit, says customers often experience spikes in production due to seasonal demands, peak seasons or for special projects.

“One example is South Africa’s agricultural sector. During fruit harvesting season, which differs in each province, the demand for material handling equipment surges.”

By renting material handling equipment such as forklifts or pallet jacks, these operations can meet demand during peak season without the long-term commitment of having to invest in equipment they don’t need year-round.

Smit says this can result in a significant cost savings for a business. “In addition, they can benefit from gaining access to advanced equipment and innovative technology they might otherwise have not been able to afford.”

Businesses that are starting out or battling in tough economic times can also benefit from short-term rentals. “When businesses are starting out and not sure of their exact material handling needs, short-term rentals make a lot of sense. Not only will they be able to get a sense of their ongoing and future business needs before committing to purchasing machines, renting can help them manage their cash flowbetter,” notes Smit.

She highlights some of the factors to consider when choosing a material handling rental partner:

• Flexible rental terms – look for a rental partner who offers rental periods that work for your business, whether it’s daily, weekly or monthly. This ensures you only pay for what you need.
• Genuine parts – make sure to choose a rental partner that maintains and repairs equipment with genuine parts, ensuring optimal performance and longevity.
• Quick turnaround times – rental partners should offer a rapid response for technical assistance, especially in emergencies. Check whether they offer 24-hour service and quick response times to minimise downtime.
• Competitive rates – compare rental rates across providers to ensure the prices are fair and within budget. The rental cost should reflect the quality of the equipment and the level of service provided.
• Safety features and certifications – choose a partner that offers equipment with up-to-date safety features, certifications, and operator training to ensure safe use, especially in high-risk environments such as warehouses, ports and construction sites.
• Variety of equipment and customisability – the rental partner should offer a wide range of material handling equipment suitable for the specific requirements of your business. It should be the right type, size and have the correct functionality for your particular operations. Alternatively, machinery should be customisable to meet customers’ specific needs.
• Reputation and brand reviews – check the potential partner’s website and social media platforms, as well as media coverage, to ascertain their credibility and industry experience, as well as the overall sentiment for the organisation and its products from other customers.
• Energy efficiency – given the world is under pressure to choose eco-friendly options, check for energy efficiency and whether the equipment is powered with lithium-ion or lead-acid batteries.
• Customer service – responsive customer service is key, as is the potential partner’s ability to offer personalised solutions and, ultimately, nurture long-term relationships. Having a dedicated customer service team that is easily reachable and responsive is critical to maintaining operations without disruptions.

Smit says businesses need to do their homework when choosing a rental partner. “It would be counter-productive, even devastating, to choose the cheapest or quickest option and then discover the machines are prone to breakdowns or are not properly supported.

“It’s important to look for rental agreements that offer flexibility, transparency and a high level of support. Being clear on the terms for delivery, usage, penalties and training is critical and can help avoid pitfalls. By understanding these elements upfront, businesses can maximise the value from their rental agreements while minimising unexpected costs or disruptions during peak periods,” she concludes.