Improvement of utilization rates and profit margins through system improvements
Rental revenues are determined by multiplying asset quantities by rental
unit prices and utilization ratios. At Kanamoto, we believe greater efficiency
of construction equipment management and operations form the basis
of the Kanamoto Group’s earnings, and recognize improvement of the
utilization ratio through “optimization of internal operational processes” to be a critical issue.
Improvement of our current systems is indispensable for improving the utilization ratio. As a first step, we are changing the machine codes for each existing rental product from the plates and stickers used presently to IC tags and QR codes, and have begun using dedicated readers and communication circuits to scan the identification information recorded there and utilize the data for equipment deliveries and pickups and for warehouse and inventory management.
We also are integrating Group company systems. As a result, the Kanamoto Group will be able to minimize the differences in utilization ratios between slow periods and peak demand seasons, achieve relative improvement in utilization ratios and raise rental revenues, and improve profit margins by
realizing a permanent cost reduction.
Enhancement of information systems to boost operating efficiency
The Company was an industry pioneer in creating an online network in 1985 linking all its branches. In 2004, we completed the migration of all mission-critical systems from a mainframe to an open system and realized
greater efficiency in all of our internal operations, from managing our rental
asset inventory to performing maintenance and regular inspections,
accounting treatment and credit management, plus the selection of models for next-period introduction.
Providing “the right equipment” at “the right time” and in “the right quantity” can be said to be the foundation of equipment rentals, and Kanamoto’s online system makes it possible. Not only does our online system ensure smooth equipment delivery and pickup, it contributes significantly to the formation of a product lineup that meets customers’ needs.
Kanamoto will continue its efforts to develop “IT governance,” and work to further increase the efficiency of internal operations, while aggressively pursuing the development of proprietary systems in the future.
