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Executive Report: Talking technical EHN reports on the HAE’s recent International Conference that took place in Amsterdam. HAE’s International Conference lived up to its name, with speakers from organisations based in the US, Scandinavia and Holland. Under the theme ‘Profit from technology’, they described how new developments could enhance operational efficiency; however, it was obvious that the human element, such as good hire staff and responsible management, would remain paramount. Focusing on people had helped the Arizona-based Sunstate Equipment Company achieve success in eight western states, according to President Mike Watts. Having acquired the company in 1977 during a time of great competition, he simply believed that “you should focus on quality and continual improvement, not growth – it will happen as a result. Profit is the requirement, but it should not be a goal.” He advocated promoting people based on performance, not potential, and making staff feel they had a voice. ‘Reverse reviews’ are held regularly, whereby personnel give feedback about corporate issues. Similarly, focus should be maintained only on improving processes and procedures, rather than on growth per se, he said. Sunstate had concentrated on hire and avoided diversifying into activities such as sales. It also minimised crosshires to maintain attention on the end-user, and stressed service rather than price. The company, which now has 46 depots, is proud of its diverse customer base and its ability to serve organisations of all sizes. In 2005, 56% of rental revenues came from monthly contracts, 21% from weekly contracts and 23% from daily contracts. Turning to technology, Mike Watts explained that Sunstate sought more functionality from its computer installation, using Internet telephony for inter-state calls and web cameras for an in-house security system. This technology could also be used for tracking hour meter readings on machinery, and to disable equipment if moved outside a permitted zone, as a theft deterrent. Gunnar Glifberg, formerly CEO of the Swedish Cramo organisation and now Board Director of RK Cramo, described how technology could assist with creating a pan-European hire business. RK Cramo was created in January when Cramo merged with the Finnish hirer RK. Having nearly 250 outlets in ten countries, the operation is described as market leader in Finland, Sweden and Estonia, with prominent positions in Norway, Denmark, The Netherlands, Latvia, Lithuania, Poland and Russia. He explained that the merger had created an organisation that could more easily expand beyond its Scandinavian homeland. Operational challenges included controlling more than 136,000 fleet items, and dealing with 75,000 customers using seven different currencies. Computer software was in place to handle aspects like invoicing, purchasing and customer relations management (CRM), and a three-dimensional modelling programme enabling site welfare cabin customers to specify requirements on screen had proved successful. Cor Molenaar, Professor of E-marketing at Erasmus University in Rotterdam, predicted technology’s evolution. Surprisingly, he suggested e-mail activity could drop by 25% by 2015, as senders increasingly sought immediate replies and responses. Businesses would have to create more attractive, interactive web sites to attract customers, more of whom would conduct their own internet research. In this way, selling would become ‘assisted buying’, but there would still be a need for pro-active sales staff who could inspire trust. Earlier, delegates were able to visit a nearby branch of the hirer Boels. The outlet in Amsterdam’s west harbour area is one of four branches in and around the capital, as well as a dedicated event hire depot. Area Manager Hans Finnema states that the tool and equipment shops are designed to create a sense of spaciousness, enabling customers to browse amongst the racks of hire products and consumables. As if to coincide with the conference theme, the branch was about to go ‘live’ with the CrimiMail database, developed by Verhuurnet of The Netherlands. Accessible on-line or via CD, it can highlight potential customers with a history of fraud. HAE plans to offer CrimiMail to its members shortly. • Executive Hire News › Archives › July 2006 › Executive Report › Talking technical
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