CLIENT: Phyllis has worked hard to build West Coast Machinery. Over the past decade her company has developed a reputation for excellent customer service and dependable equipment rentals. While looking to expand, Phyllis encountered an opportunity to acquire a smaller rental company that would turn her fleet into a multi-state enterprise.
This acquisition pushes West Coast Rentals into territories that are currently undergoing a construction boom and the company stands to generate a substantial pro t over the next several years. Unfortunately, geographical areas with high concentrations of construction are also targets for theft.
Phyllis is aware of construction employees being paid o by organized theft rings for providing information and availability on equipment. This Intel aids sophisticated professional thieves who dismantle equipment and sell stolen parts to unsuspecting contractors online. For equipment that is removed from the site intact, she knows recovery rates are extremely poor as stolen equipment is often exported to Central and South America.
Taking a calculated risk in expanding, the company cannot endure the indirect costs that will be incurred from stolen equipment. These inventory losses will take the form of business interruption, short-term rental costs, project delays and lost production time due to long lead-times before new equipment can be acquired.
The cost to replace some of West Coast Machinery’s heavier equipment can run as high as $200,000, so it is imperative they keep very tight control over inventory. While worksite supervisors are accountable for implementing theft prevention programs and job-site inspections, it is ultimately Phyllis who will bear the burden when equipment goes missing.
SOLUTION: Phyllis started her company in a small town where she was never very far from the equipment and created a great record keeping system that included photographs, serials numbers, dates of purchase and model numbers. Now that the equipment would be much farther away her methods of inventory need to be updated to accommodate the new business model.
The installation of GeoTraq’s cellular enabled location and tracking devices on equipment will allow Phyllis to receive scheduled location up- dates from any piece of equipment whether it is in the yard or out for use on a construction site. GeoTraq’s low cost of deployment and lifetime ownership brings Phyllis peace of mind without digging into her bottom line.
IMPACT: Phyllis’ company does not have to be a statistic among the 300 million to 1 billion in annual losses incurred from equipment stolen from construction sites. She knows where her inventory is at all times and thanks to GeoTraq’s global coverage, she can even consider expanding West Coast Rentals into neighboring countries.