Rental: benefit from a low-risk, flexible way to optimize your fleet

Why should transport companies and fleet operators incorporate renting as part of their operational strategy? In this article, we discuss the challenges operators face due to market developments or customers demand. We explain how increased flexibility is part of the solution, how it helps them adapt and thrive in changing circumstances.

Transport companies and other fleet operators face the challenge of having to lower carbon emissions while at the same time keeping their fleets both cost-effective and competitive. This is driven by changing regulations as well as shifting customer needs. Additionally, fleet maintenance presents its own array of hurdles. Preventing breakdowns, ensuring regulatory compliance, and the need to continuously innovate under competitive pressure escalate costs and organizational burdens. For many companies, new ownership models are an important part of the solution.

Flexibility to scale operations

Instead of simply growing their own, permanent fleet, many companies opt for more flexibility. By renting or leasing they are able to adapt to seasonal demands or a client’s needs while avoiding all of the costs associated with underutilized vehicles or equipment. Long Term Lease (>1 year) and Short Term Rent (<1 year) as well as Sale & Lease Back contracts provide companies with a range of options to increase flexibility or de-risk fleet operations.

This has several, significant advantages. It, of course, allows them to scale their operations efficiently. But another advantage is that it allows them to experiment with and deploy the latest technologies with minimal risk. If market demand holds, or the technology is permanently adopted, they can decide to invest based on a proven business case. Because the terms are also flexible. They are tailored to our customers’ needs and provide them with the ability to modify equipment or options during the contract. A very current example of this are customers who switch to an electric reefer or truck in order to meet a customer’s sustainability requirements.

Truck and trailer rental

Renting trucks and trailers is a crucial strategy for fleet operators aiming for operational agility, enabling them to efficiently scale operations and capitalize on market opportunities without the significant financial commitment of asset ownership. This approach not only fosters competitive advantage and growth by facilitating strategic financial planning but also allows for the integration of cutting-edge technologies.

Specialized material

Rental is an attractive option for many companies looking to deploy specialized equipment and customer-specific solutions. It allows them to efficiently deploy the material during specific contracts and remain unburdened by the required maintenance. It’s also a great way to literally test-drive new technology and see if certain equipment is, or will be, a good fit for the company. With over 85.000 assets, TIP Group’s equipment pool ensures that you have the right equipment available.

Cost control

A significant benefit of renting is cost control. With consistent rental fee, set regardless of market price fluctuations, customers can precisely anticipate the expenses associated with deploying this rented equipment for their projects, ensuring financial predictability. This stability in rental costs also provides liquidity and mitigates risks associated with investments, particularly valuable during challenging economic times. Moreover, entering into long-term rental contracts often leads to decreasing rental fees over time, offering substantial cost savings through extended partnerships.

Availability

By selecting to right provider, fleet managers are able to ensure near-instant availability and a high level of service. Key factors that guarantee that you will be able to respond to market or client demands at short notice and make efficient use of your equipment. TIP Group owns of fleet of over 100,000 vehicles (trucks, trailers, tankers, swap bodies, electric vehicles) and maintains international network of 130 locations and 7,500 workshops to support its customers.

Compliance

Compliance with the demands of regulations, digitization, sustainability, and safety are an essential part of any rental offering. By using your equipment provider’s expertise in compliance you ensure that your rental equipment aligns with both governmental and customer expectations in all operating regions. The organizational load associated with matters of compliance – e.g. TPMS, Low Emission Zones - is significant, especially when renting equipment that is (relatively) new to your company. For many customers, this is one of the key benefits of renting with TIP Group.

Maintenance and repair services

Renting equipment not only offers businesses flexibility but also includes essential maintenance and repair services, ensuring fleet efficiency and roadworthiness without ownership burdens. Comprehensive maintenance packages maximize fleet uptime, minimize breakdown risks, and simplify maintenance processes. In addition to these services, TIP offers damage protection, accounting per workshop appointment rather than per individual damage, effectively minimizing expenses. This integrated approach allows businesses to focus on core operations while ensuring optimal equipment performance and reliability.

Digital solutions

Digital solutions are key to getting the most out of your equipment. They drive operational efficiency as well as improved sustainability and safety through the use of advanced telematics and the opportunities this unlocks. Additionally, it is now possible to procure solutions that help with fleet management, vehicle inspection (requirements), tire pressure management, brake management and many more. It is definitely worth exploring the available options.

Renting as a key part of fleet management

Customers who view renting as an essential part of their fleet management are able to grow and optimize their business substantially. It increases flexibility without dramatically increasing the organizational load of an expanded fleet. A great way to test the waters. For when one of your customers needs you to step up, or the market offers a great opportunity.

Why choose TIP Group’s rental solution

TIP Group stands out in this space, providing significant benefits to both large and small companies:

• Standard and customized equipment
• Cost control (main focus in challenging times)
• Wide range of rental options (customer-specific solutions such as digital solutions)
• Maintenance and repair can be included
• Manufacturer independence
• Availability of > 85.000 units in our fleet
• Compliance support

A single, short-term rental is not that complex. We promise you that TIP Group will provide you with a competitive offer. But there are more opportunities to unlock.

Do you want to have a deeper look at your fleet operation and discover how to incorporate renting to impact your bottom-line? When to rent and when to lease or purchase outright? Should you consider Sale and Lease Back? Contact us or reach out to one of your local TIP representatives to arrange an appointment.