HubNetic was contracted by a major worldwide manufacturer of construction related products. Through a series of mergers and acquisitions, the client was soon operating assets at over 100 locations nationwide. With such rapid growth, it was difficult for them to adhere to a centralized asset management method, leaving them with a haphazard system that delivered less-than-ideal results. The primary concern was costs associated with material handling equipment and that those expenses could not be accurately identified and were likely out of control.
HubNetic conducted extensive site surveys, collected and reviewed the data, and then analyzed the data using our proprietary software. New procedures were implemented with service vendors and equipment operators to ensure that the asset inventory and all associated information would be kept up to date going forward. HubNetic also facilitated new agreements for parts and service programs from preferred vendors.
Based on each location’s total production plan, HubNetic constructed a production strategy specific to the individual assets. Applying the cost data against that plan created a “cost per operating hour” metric that would become the KPI for the equipment.
To create costing benchmarks, the client’s historical costs were reviewed and compared to costs of similar equipment and operations represented in the HubNetic database of over 100,000 industrial assets. All maintenance contracts, warranties, and similar tools for each asset were recorded in the HubNetic system to ensure that the proper costs were applied in the future.
Once plans and benchmarks were in place, HubNetic used its system and expertise to recommend changes in the equipment fleet. Repairs to surplus equipment were suspended, and a new purchase order process was enacted to control future repairs. Our solutions included:
Today the client has contemporary and comprehensive information regarding their assets. Through real-time, web-based dashboard reporting, the client has access to information including:
Using HubNetic, the client views their information and metrics from the corporate level to the location level and down to the individual asset. Originally, the client had underestimated their baseline costs by almost 30%. Once the “cost per operating hour” KPI was in place, and the HubNetic system was fully implemented, overall costs declined, and the KPI itself improved by almost 50%.
Now the client has newer, better equipment and they are doing more work with less equipment than ever before. Uptime is high, and costs are low. Most importantly, the client’s locations can focus on their core business as HubNetic manages the fleet management process.