[News] Flexible Rental Enables Businesses To Adapt To Customer Demand

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Andrew Hill • Oct 05, 2020 • Fleet managementFlexible hireCompanyFinance

UK businesses have revealed that switching to flexible rental has enabled them to rapidly scale their vehicle fleets in response to changing customer demand, both during the Covid-19 lockdown and since restrictions have begun to lift.

Working with commercial vehicle specialist Enterprise Flex-E-Rent, these businesses were able to transform their fleets within days. This ensured they maintained high levels of customer service while supporting their own bottom line.

A key element has been the ability to de-fleet without incurring penalties. Glasgow-based City Technical Services, which provides gas and electric engineering services, including heating installations and renewables, was in that situation.

The pandemic led to an immediate downturn of business, with up to 80% of its 150-strong van fleet, provided by Enterprise on flexible rental, sitting idle. Enterprise enabled City Technical Services to scale back its vehicle commitments in May and later extend this into June as well, helping it to cut costs immediately.

As demand has returned with the end of lockdown, the business has once again expanded its van fleet, with Enterprise providing vehicles in response to customer requirements.

Kenny Henderson, Managing Director at City Technical Services, comments: “The pandemic drastically affected our business, but Enterprise’s flexibility made a huge difference. By downscaling our commitment at first and then increasing it again, paying only for what we need, we’ve been able to match our costs to our customers.”

 

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The UK’s largest roofing contractor, Avonside Group, saw the majority of its new housing sites temporarily closed during the first few weeks of lockdown. It urgently needed to remove cost from the business, including reducing its fleet of around 90 Enterprise vans.

Enterprise worked with Avonside to create a programme that enabled the business to de-fleet almost all of its flexible rental vehicles rapidly, without incurring additional charges and in the process freeing up cashflow. As demand for its services returns, it is working with Enterprise to grow the fleet again.

Simon Smith, group commercial director at Avonside Group, adds: “Enterprise’s flexibility helped us to continue trading in a very difficult period and keep cash in the business. We’re now growing the fleet again and are sticking with flexible rental, because we know first-hand that it’s a solution that doesn’t force us to invest in expensive assets.”

Flexibility has also been vital for organisations experiencing greater need for their services. Leading consumer delivery company Hermes UK experienced unexpected and unprecedented demand during the lockdown: more than double typical seasonal levels and even surpassing the peak Christmas period.

It therefore used Enterprise Flex-E-Rent to swiftly supply additional delivery trucks to help it meet this new level of demand and maintain its customer service levels.

Mervyn McIntyre, Head of Fleet at Hermes, notes: “Enterprise’s flexible rental enabled us to meet a wave of demand that appeared almost overnight and is still ongoing. We’ve brought new vehicles into the fleet without a massive capital investment and have the security of knowing we can just hand them back if demand slows down.”

Danny Glynn, Managing Director of Enterprise Flex-E-Rent, concludes: “Rental meant that businesses that were hit by the pandemic could adjust their vehicle fleets quickly to match changes in demand. Some had to contract the number of vehicles in the short term. Others are seeing demand skyrocket and need extra vans or trucks in a hurry.

Flexible rental is fast becoming a preferred choice because it allows organisations to scale up or down to meet customer demand at a moment’s notice, without incurring penalties. In a world still filled with considerable uncertainty, flexibility is more important than ever.”

In May, Enterprise also launched its Complete Clean Pledge to further enhance the already rigorous cleaning protocols between each rental. This includes washing, vacuuming, general wipe down, and sanitising with a disinfectant that meets leading health authority requirements, with particular attention to more than 20 high-touch points.

Interested in finding out how our flexible vehicle rental service can benefit your business like it did for Avonside Group? Click below to make an enquiry with one of our flexible hire experts today..

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