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The future for plant hire… the Hewden perspective.

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Presentation on theme: "The future for plant hire… the Hewden perspective."— Presentation transcript:

1 The future for plant hire… the Hewden perspective.
August 2014.

2 Key messages… Plant hire post recession.
How has Hewden changed to survive and grow? Listening to meet the changing needs of our customers? Driving value through innovation. How can manufactures help hirers support: Customers. Value creation. The future…

3 Plant hire post recession... My honest assessment
Profitability is recovering. Volume. Price. Efficiency. Cash generated is now being re-invested. Availability of new assets constrained. Funding availability is good. Predicted consolidation has not happened. Acquisition cost inflation is outstripping increases in rates. Return on investment is reducing. The cycle continues…

4 Transforming our operating model
Why? Resistance to change was not an option. Strengths Intense coverage of UK. Local relationships driving sales. Low delivery charges. Sales coverage in every depot. Weaknesses Customers almost never visited our depots 99% of business conducted by phone Inconsistent experience Inconsistent product mix Depots competing internally IT system not fit for purpose Threats No compelling offer. Confusion out of tools disposal. Perceived to be expensive. Losing market share No social media presence or e commerce Opportunities Raise Hewden profile Launch a compelling experience Improve sales coverage Use scale to our advantage Embrace technology

5 Listening to our customers
Availability of Plant & Equipment Total Price (cost of the hire, delivery & extras) Reliability of the Plant & Equipment Quality, Age & Appearance of the Equipment Reliable Delivery at the Agreed Time Prompt Collection When Finished National Coverage & Local Depots in the Area of the Job Friendly and knowledgeable staff on the phone Good Personal Relationships Good Office Admin (Accurate Invoicing & Monthly Summaries) Being Honest and Keeping You Informed Prompt Backup From Fitter if a Problem On Site Having an Existing Account Set Up / Group Agreement Being Specialist in that Field / Equipment (inc. site planning visits) Past Experience of that Hirer Managed Service Guaranteed availability of quality, fit for purpose, well presented core machines Consistent customer interface that is easy to do business with & accurate Geographical coverage which can deliver locally and nationally… ON TIME IN FULL Multi-specialist product range & contract management The right People The right Training The right Leadership Delivering consistency of Service Safety is as standard and not a differentiator!

6 Changing and innovating to meet their needs…
Availability of Plant & Equipment Total Price (cost of the hire, delivery & extras) Reliability of the Plant & Equipment Quality, Age & Appearance of the Equipment Reliable Delivery at the Agreed Time Prompt Collection When Finished National Coverage & Local Depots in the Area of the Job Friendly and knowledgeable staff on the phone Good Personal Relationships Good Office Admin (Accurate Invoicing & Monthly Summaries) Being Honest and Keeping You Informed Prompt Backup From Fitter if a Problem On Site Having an Existing Account Set Up / Group Agreement Being Specialist in that Field / Equipment (inc. site planning visits) Past Experience of that Hirer Launched Core Fleet Guarantee. Top 30 products Guaranteed Next Day delivery or £100 credit Published real rates on web. One fixed price transport charge. Launched how to get a discount. £60m investment in core equipment. £10m refurbishment investment. Cosmetic detailing & rebranding Replaced sales team with Customer Service Advisors and launched App The right People The right Training The right Leadership Delivering consistency of Service Invested vehicle tracking software and Customer Experience Advisors Text updates and courtesy calls. Retained and refocused best expertise to support in field. Dedicated Field Service expertise

7 Driving value through innovation
TRANSPORT OPTIMISATION Using technology to make better decisions and deliver on time in full. Delivery text £20m Reduce cost base 2500 products to 250 100 field based Sales Team to Customer Service Advisors 2 Customer Experience Advisors Territory Managers Depots 106 to 34

8 Listening to our customers
Availability of Plant & Equipment Total Price (cost of the hire, delivery & extras) Reliability of the Plant & Equipment Quality, Age & Appearance of the Equipment Reliable Delivery at the Agreed Time Prompt Collection When Finished National Coverage & Local Depots in the Area of the Job Friendly and knowledgeable staff on the phone Good Personal Relationships Good Office Admin (Accurate Invoicing & Monthly Summaries) Being Honest and Keeping You Informed Prompt Backup From Fitter if a Problem On Site Having an Existing Account Set Up / Group Agreement Being Specialist in that Field / Equipment (inc. site planning visits) Past Experience of that Hirer Managed Service Guaranteed availability of quality, fit for purpose, well presented core machines Consistent customer interface that is easy to do business with & accurate Geographical coverage which can deliver locally and nationally… ON TIME IN FULL Multi-specialist product range & contract management The right People The right Training The right Leadership Delivering consistency of Service Safety is as standard and not a differentiator!

9 How can manufactures/dealers help us to help customers…
Availability of Plant & Equipment Total Price (cost of the hire, delivery & extras) Reliability of the Plant & Equipment Quality, Age & Appearance of the Equipment Reliable Delivery at the Agreed Time Prompt Collection When Finished National Coverage & Local Depots in the Area of the Job Friendly and knowledgeable staff on the phone Good Personal Relationships Good Office Admin (Accurate Invoicing & Monthly Summaries) Being Honest and Keeping You Informed Prompt Backup From Fitter if a Problem On Site Having an Existing Account Set Up / Group Agreement Being Specialist in that Field / Equipment (inc. site planning visits) Past Experience of that Hirer Better inventory availability Shorter lead times Price transparency, consistency medium term. Improve reliability and warranty. Damage proof. Easier to PDI and maintain cosmetics The right People The right Training The right Leadership Delivering consistency of Service Breakdown responsiveness. Engineer training

10 Why is price so important?

11 The Core Fleet Guarantee
Facts not fiction… standing behind our claims, building credibility and adding perspective. 97% On time in full 99% In full < 2 hours late video

12 The Future… What is on my horizon?
Zero Harm - Striving to find safer ways. Improving profitability & return on investment through Growth Product innovation which reduces cost or adds real value. Productivity and efficiency of operations and logistics. Driving customer interface enhancement through the internet and social media. Building loyalty by Delivering a best in class, retail lead, customer experience. Working with young and disadvantaged people to slow and solve the skills shortages in our industry.


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