Engineers, project managers and procurement professionals often purchase their test equipment assets out of habit, but with long lead-times and hidden ownership costs for buying new equipment, is there a better way?
Unlocking Value in Test and Measurement Inventories
Accessing the latest test and measurement technology is essential for engineers developing and deploying new technologies, whether in research and development, for validating products during manufacture or verifying systems and installations. Many though are not using their test assets as efficiently or sourcing them as effectively as they could.
By renting equipment more often, instead of buying equipment outright, they can access the latest testing technology much more flexibly and quickly, with a large choice of instruments ready and waiting on the shelf for fast delivery wherever they are needed. Rental also offers the added advantage of much great flexibility, with the freedom to change, upgrade equipment, or return equipment based on their particular needs at the time.
Breaking the Habit
At Electro Rent, we find from working with a wide range of clients that test equipment is often purchased out of habit without considering the other options available. Through our analyses, we often find this is not the most effective approach based on several measures, including cost, availability of assets, and flexibility to support changing project needs. Equipment purchases are also usually made in isolation, in response to individual project or contract demands and a more joined up approach can pay huge dividends.
There are a broad range of equipment access solutions available, including equipment rental, rent-to-buy, hire purchase and leasing. The best option to choose depends very much on the circumstances. Knowing all the options available allows individual engineers and their organisations to make more effective procurement decisions that can make a big difference both in terms of cost savings and improvements in efficiency, as well as offering all-important flexibility.
Rental as the SmartChoice
There will always be times when a piece of equipment is needed quickly to fill a gap, for example to replace an instrument that is sent for calibration or repair, or extra kit needed to complete a project or contract on time. Equipment rental is a great option in these situations as instruments can be delivered quickly anywhere in the world, and with a single all-inclusive rate you only pay for what you need and use. What is less well known is that rental can also be an extremely useful tool to support long term equipment needs, whether for a longer project or to support ongoing inventory requirements.
For longer-term needs it is particularly important to consider the true cost of ownership when making any test equipment procurement decisions. Hidden costs such as repair calibration, asset management and cost of capital can have a significant impact on the lifetime cost of an instrument. By calculating the true cost of purchase accross these multiple factors, the value of renting becomes much clearer. When combined with the flexibility, speed of access to equipment and improved utilisation, the true value of rental is even greater.
Figure 1. Equipment rental can be used to support different types of demand
As well as proving better value in many circumstances, equipment rental also has several other advantages over traditional purchase. It is much more agile, with the flexibility to change as business, project or contract needs change. Instruments can be delivered quickly, exactly where they are needed, and often within a day or two, avoiding the lengthy lead times that are frequently experienced with purchased equipment. It also protects against equipment obsolescence as equipment can easily be changed to ensure continued access to the latest technology.
Understanding when to Rent
From years of experience managing our own extensive test equipment inventory and helping our customers get the most from their test assets, we have developed powerful tools to model expected costs of ownership. These tools help us to conduct detailed analyses that show whether rental or purchase will be the most cost-effective solution.
We help engineers, project managers and procurement professionals understand all the options open to them, so they can choose the right solutions for their business, driving more value from their test assets and operations. In our whitepaper we show how leveraging the right solutions at the right time can help you ensure your teams always have access to the equipment they need while minimising the cost.
Read the whitepaper now to learn how taking a smarter approach to test equipment procurement could help your business. Put rental to the test and see the difference it could make to your business.