fit-rent rental solution whitepaper - cloudfront.net

Innovative SAP Solutions

www.fit-global.com

Fit-Rent RENTAL SOLUTION WHITEPAPER

Native Rental solution in SAP

KEEPING YOUR RENTAL FLEET “IN CONTROL” FIT GLOBAL

www.fit-global.com

Release Date: 27.01.2016. Oosterhout, The Netherlands

Prepared for:

To the attention of:


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Table of content

Executive summary ................................................................................................................................. 2

1 Introduction ..................................................................................................................................... 2

1.1 Rental-specific requirements ................................................................................................................ 3

2 Fit-Rent: the SAP-embedded Rental Solution.................................................................................. 4

2.1 Overall benefits Fit-Rent Rental Solution .............................................................................................. 4

2.1.1 Benefits for the Rental businesses .................................................................................................... 4

2.1.2 Overall Benefits................................................................................................................................. 5

2.1.3 Customer 360 degree overview ........................................................................................................ 5

3 Fit-Rent is SAP Certified ................................................................................................................... 6

4 Fit-Rent Rental solution overview ................................................................................................... 7

4.1 Fit-Rent Rental Solution core process design ........................................................................................ 7

4.1.1 Fit-Rent Rental Solution Architecture, Application Scope ................................................................ 8

5 Main Rental process flow ................................................................................................................ 9

6 Functional details Fit-Rent Rental Solution ................................................................................... 10

6.1 Fit-Rent Rental Solution functional enhancements ............................................................................ 11

7 Conclusion...................................................................................................................................... 11

8 Why FIT? ........................................................................................................................................ 13


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Executive summary

There is an urgent requirement for companies in the Rental market to be more in control while managing

equipment-related processes. Many of these companies work with an ERP solution like SAP, but increasingly

struggle to gain control due to the lack of efficient integration between the different functionalities like

Equipment and Fleet Management from a Sales and Material, Asset perspective, the Preventative Maintenance

requirements, the Customer Quotation and 360 view perspective and related Invoicing. Due to the fact that SAP

AG has no suitable End-to-End solution to support the broad Rental requirements, FIT Global has accepted the

challenge to provide a full-fledge SAP-embedded Rental Solution. Covering enhanced Rental functionality,

optimally using SAP-existing functionality, a complete, End-to-End Rental Solution has being realized.

Next to the core Rental processes a broad range of process enhancements, for example in the areas of full

integration of Rental Equipment with Preventative Maintenance activities. Or the optimized Fleet Management

functionality, enabling full support by offering detailed fleet utilization reports, also facilitating Financial

Management.

This fully SAP based and certified solution is called Fit-Rent Rental Solution.

FIT has extensive SAP experience, combined with strong expertise in solution development for Heavy Equipment

Dealers and Automotive businesses. Together with the structured product development and project

management approach, these are critical success factors to realize SAP solution development and

implementations across the world.

1 Introduction

The Fit-Rent Rental solution is a horizontal, end-to-end rental management solution for industries where renting

equipment, machines, cars and/or tools is daily business, with the need for a fully SAP based, centralized solution

to support global rental operations. It is suitable for example for Heavy Equipment Dealers (HED), Heavy

Equipment Management (HEM), Automotive, Healthcare companies and in other industries with rental

operations. The solution not only supports core rental operations, but also operational processes that are tightly

linked to rental business like procurement and sales of rental units, fleet management. In addition, service

management business areas are also covered for inspection, equipment preparation, maintenance and service

processes, including rental specific operational and management reporting functionalities.

Fit-Rent is an end-to-end rental management solution that has the capabilities to support above main rental

process streams also CRM, procurement, logistics, fleet management, rental equipment planning/scheduling,

and rental related financial processes, requirements. Purchasing and rental equipment Sales fulfillment solutions

help dealers respond to the changing needs of their customers with the most suitable solution options.

FIT-Rent help rental companies to utilize their rental fleet and to gain biggest efficiency through fleet

optimization. They can optimize financial and rental processes including end-to-end logistics to drive the rental

business.

Companies operating in the Rental business are facing a variety of business challenges, dealing with a broad

range of business partners (e.g. dealers, suppliers, customers, headquarters). All these business partners provide

different kinds of information required for different purposes, but highly interlinked. Headquarters for example

provide rules on supported equipment and warranty procedures, but also give input on pricing strategies.


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Suppliers need to give insight in the availability of equipment or parts, delivery times and pricing. With other

Dealers in the landscape information can be exchanged on equipment or parts availability and location. And of

course customers have their own specific requirements and demands.

Are the following questions relevant in your business?

- What is the current status of this equipment? (Available, in maintenance, under warranty) - How much do we earn on this specific equipment? - What is the ‘total cost of ownership’ of this equipment group? - When should I take this equipment out of the rental fleet?

In that case this white paper can offer support by offering an innovative solution tackling all these challenges!

1.1 Rental-specific requirements

Customer demands are increasing. Different variant configurations can be required by users, for different

timeframes and on diverse locations. To be able to create an offer matching the customer requirements, it is

increasingly important to have real-time insight in not only your own availability, but also that of your business

partners. Flexibility and scalability are key factors in successful Rental business.

But also internal demands are increasing. In todays’ economy sustaining a competitive edge combined with

optimal operational efficiency is crucial. Transparency in pricing strategies, revenues, costs related to purchasing,

maintenance, warranties etc., in short insight in your Total Cost of Ownership (TCO) is urgently required to be

able to sustain a viable business strategy. That’s how you come and stay into control of your rental processes.

These demanding business requirements should be efficiently supported from a business and IT perspective.

Interfacing with the systems of the business partners is very complicated, but also the combination of all

different business process requirements like equipment configuration, flexible pricing and contracting is not

easily covered by a single application. Also SAP, which covers from an ERP perspective these business processes

from the different modules/solutions like CRM, CS/PM, SD/MM, FI/CO, lacks an efficient integration component

and user friendly application specifically tuned to facilitate Rental processes. FIT-Global gladly accepted the

challenge to fill this gap of existing solutions and develop a SAP-embedded solution: Fit-Rent Rental Solution.

The main rental specific processes are:

- Rental lead and opportunity management,

- Rental marketing / campaign management,

- Rental equipment purchase requisition, purchase process,

- Rental equipment and fleet management,

- Rental equipment fixed asset integration,

- Fleet and equipment planning, scheduling

- Rental contract quotation process,

- Rental equipment search and availability check process,

- Rental specific pricing conditions management,

- Rental Kit (Packages) handling,

- Handling of rentable materials, Bulk materials, and Consumables,

- Rental contract process,

- Customer credit limit check process,


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- Deposit management,

- Rental delivery and return logistics processes,

- Equipment preparation, inspection processes,

- Equipment SWAP (change) processes

- Contract based cycle and final billing,

- Rental specific reporting like Rental Revenue Report, Rental Overview Report, Open Agreements report, Rental Utilization Report, Equipment Listing Report, Bulk Material Listing Report.

And these are all supported by the Fit-Rent Rental Solution realized by FIT Global.

For more information, see also: http://fit-rent.com/

2 Fit-Rent: the SAP-embedded Rental Solution

The Fit-Rent Rental Solution enables you to increase revenue, reduce capital expenditures and operate at

maximum efficiency while providing a level of customer service that distinguishes you from your competitors.

It is specifically developed for Rental companies, enabling a significant increase of revenue, since Fit-Rent Rental

Solution helps improve fleet management, optimize equipment maintenance and eliminate lost billing

opportunities.

2.1 Overall benefits Fit-Rent Rental Solution

2.1.1 Benefits for the Rental businesses

With this new Rental solution, businesses will:

FIT Global has served dozens of companies in

several industries worldwide with innovative SAP

solutions.

http://fit-rent.com/


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Exceed Customer Expectations

Real time status, location visibility of rental Equipment

Streamline Quotation, Contract processes

Streamline Delivery and Pick Up

Speed Up Collections

Eliminate Duplicate Data Entry

Take Control of Your Inventory

Optimize Inventory Efficiency

Empower Your Sales Team

Achieve Fast ROI

Minimize IT Costs

Increase Informed Decision-making

Rental specific operational, and management reports

2.1.2 Overall Benefits

The Fit-Rent Rental Solution is:

A complete Rental solution specifically tuned to Rental business requirements.

SAP-embedded, ensuring seamless integration with all related business processes, e.g. Procurement,

Maintenance processes, Warranty, Finance.

An extensible, scalable solution, easy to align new businesses and changing, growing environments.

Efficiently implemented using the straight-forward, structured roll-out implementation strategy (ASAP

methodology).

Incrementally implemented via accelerated implementation cycles, reducing risks and costs, leading to

time and quality advantages.

Sustainable due to the centralized product development, delivery and support team.

A fully SAP-embedded solution, integral part of your SAP system landscape, so no issues with release

management and lifecycle management.

In addition, FIT guarantees ongoing development and innovation of the Fit-Rent Rental solution.

2.1.3 Customer 360 degree overview

CRM plays an important role in supporting rental operations, from the very first interactions with customers,

through the entire lead, opportunity and quote-contract processes. Mastering the dealer network business

model means going above and beyondexpectations to make a true difference in the success of the end

customers. Full insight in the customer requirements is critical to help ensure the level of service expected.

Local regulations and regional preferences must be served to address the needs of end customers in their

particular environments.

Fit-Rent Rental Solution supports this:

Businesses have complete visibility of a customer’s equipment history, enabling them to create leads

and opportunities both for new products and for the highly profitable service and spare parts offerings.

Alignment with SAP solutions for dealer management to provide a 360-degree customer view, enabling

dealers to deliver solution bundles of original equipment, field service and spare parts.


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Manufacturers focus on product innovation, manufacturing efficiency and supply chain optimization.

Dealers, however, need a 360-degree customer view, which focuses exclusively on serving their

customers’ localized requirements. In addition to the original equipment, the true differentiation a

dealer provides is a portfolio of value-added solutions.

Dealers must deliver original equipment, field service and spare parts in a bundled solution. On top of

this, dealers offer advanced service contracts, extended service-level agreements and highly responsive

spare parts provisioning.

3 Fit-Rent is SAP Certified

In September 2015. Fit-Rent became SAP certified solution. This is a quality insurance of the solution and a proof

on both technical, functional side that the solution reflects the predefined scope, requirements and is aligned

with SAP standards, development best practices and is built on top of standard SAP CRM, ERP software.

This means the solution is fully integrated to SAP software as an extension of standard SAP functionalities.


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4 Fit-Rent Rental solution overview

4.1 Fit-Rent Rental Solution core process design

The Fit-Rent Rental Solution is developed with pure SAP technologies, as integral part of SAP. This way a

complete, centralized solution is built with all related business processes and optimal use is made of the existing

SAP system set-up:

The solution is completely embedded in SAP, as integral part of SAP

No integration or additional system maintenance will be needed

To provide full flexibility in design both SAP-ECC and SAP-ECC-CRM concepts have been considered

Rental package can be deployed to new or existing SAP user companies in short term

Target was to develop a generic , non-brand specific Rental solution

During implementation also customer-specific requirements are easily managed (blueprinting)

Fit-Rent is provided as a package solution, which can be deployed on

1. On-premise (local installation) or

2. As a service on demand (hosted by 3rd party). It is HANA compliant.

Fit-Rent Portal to reach rental information via web based tablet, or mobile

Centralized, role based user interface.

Fast user adaption.

Technical prerequisites:

SAP ECC version 6.0

SAP CRM version 7.0

SAP Netweaver 7.40


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4.1.1 Fit-Rent Rental Solution Architecture, Application Scope

Rental processes have a very broad scope, including sales pricing information, equipment configuration data,

stock availability and invoicing and warranty information. See below the main enhanced scope processes and

architecture of the solution.

Fit-Rent Rental Solution is based on SAP ERP and CRM and is using NetWeaver Business Client (NWBC) to have

one centralized user interface for all Rental business system users.

Below diagram shows on high level the Fit-Rent processes and the architecture that has been built on.


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5 Main Rental process flow

Below flowcharts represent the high level and detailed process steps of the core rental scenario.

Rental/Lease cockpit

Cockpit from which employee have overview regarding customer

activities

Rental quotation

creation for the

vehicle

Price determination

on pricing data

and/or add manual

prices/discounts

Rental contract

creation

Delivery for

customer delivery

Billing the

customer

Customer request

to return

Entering the date en time of

the renting period

Renting to Customer

Customer

selection/creation

Reservation by

Rental contract

Quality inspection

for check out

Goods issue/To

customer

Stock

reduced

for

availibility

Picking up/Return

delivery

Quality inspection

for check in

Additional

items for

billing?

Final billing

Add items to be

billed at the

customer rental

contract

Y

N

Availibility check(Search by

characterisctics and/or

specifications)

Different pricing options can

be predefined for default

price determination. Manual

additional surcharges and

discounts can be entered

Allocation of the

vehicle with serial

number (?)

Checking for availibilitybased

on the classification

characteristics

The vehicle contains the

material and the batch with

the relevant characteristcs

values

In case of periodic billing

invoice will be created for

every period if not one

invoice will be created for the

rented period


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6 Functional details Fit-Rent Rental Solution

The main functional focus areas of SAP-embedded Rental Solution are:

From the very start of a Rental inquiry / quotation, the process of selecting the required equipment configuration

up to investigating the equipment availability, pricing, including delivery type, is covered. The actual sales pricing,

billing and, if required, warranty processes are also included for different scenarios. Overall fleet management

is also efficiently supported, including planned and unplanned maintenance activities, logistics processes of

Equipment, but also fleet lifecycle management and related financial reports and analyses. End-to-end Rental

processes are completely integrated with all SAP-related functionality.


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6.1 Fit-Rent Rental Solution functional enhancements

The main goal was to provide extensive Rental functionalities while optimally using the existing SAP

functionalities to optimize and enhance the Rental Solution into a uniquely comprehensive solution, including:

Equipment Maintenance Integration

Preventative maintenance, Work orders.

Existing SAP functionality in relation to Rental functional requirements, in the following areas:

Revenue Recognition of long-term rental contracts

Profitability Analyses (Profit Center, CO-PA Accounting)

Invoicing of Rental Contracts/AR

Acquisitions: Procurement of Rental Assets and its introduction into the Rental Fleet

Fixed Asset Management (driving rental fleet depreciation etc.)

Renewal: Sales of Rental Equipment and Rental Fleet Optimization/Renewal

Rental Fleet visibility to Sales Department for renting/selling

Service Management (optional)

Planned Rental Fleet Maintenance, Service Planning optimized along the Rental Cycles

Breakdown Service, Replacement Units

Service preparation before rental delivery

Service inspection at rental return

Localization and language requirements:

SAP provides main localizations for different countries

For localization installations the SAP best practices will be used

New language translation tool.

Developed by FIT to efficiently manage new language requirements

After translating, this tool offers different controls and validations to support the adoption of

new languages

East of use; new language data can be imported from Excel using a new, simple SAP cockpit

After validation the translation database can be updated with the new language

Simple, controlled process for localizations and languages adaption.

7 Conclusion

FIT has extensive knowledge and experience developing Equipment-specific solutions like Rental and a proven

track record, with many happy customer references. FIT has a focus on developing innovative, industry-focused

business solutions and has been the first to realize many new solutions and implementations.

Our extensive knowledge of both SAP and the Rental business ensure:

Deep Rental business knowledge and Rental implementation experience

Innovative solution realized with the latest technologies, e.g. developed on top of SAP HANA

Extensive SAP knowledge and experience, exceptionally strong SAP technology basis

Single point of contact for Rental development, support and maintenance


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Centralized and continuous product and team development

Strong combination with the ability to execute, provide proven solutions and industry best practices

Commitment to continuously innovate and evolve the Rental Solution.

Strong Project Management skills and customer involvement in product roadmap definitions.

Complex, industry specific value map, see below

End-to-End Rental Management

360 degree customer view Rental Contract Management

Reservation / Quotation Management

Advanced Contract Management and Rental-Centric Billing

Rental Contract Templates Full Finance and Asset integration

Rental specific pricing, billing management

Service offerings

CSA’s, Parts offerings

Equipment Management

Purchase and Sales order fulfillment

Rental specific SWAP and internal transfer processes

Fleet management Delivery and Return processes


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8 Why FIT?

FIT-Rent helps dealers drive value on global rental business, enabling to maximize their efficiency and support

them in long-term customer service and growth. Using FIT-Rent rental companies can gain bigger profit, while

hitting all opportunities right and while decreasing operational cost and maintenance of the centralized solution.

• One SAP based, centralized solution

• No integration needs and dependencies on any 3rd party systems

• FIT rental solution developments are reused as implementation accelerators

• Bigger flexibility due to controlling full development, maintenance processes

• Product development and implementation team with deep SAP and Rental business knowledge and

implementation experience

• Lower development- and maintenance costs because no interfaces need to be maintained and/or

continuously developed

• Lower TCO due to centralized maintenance, development and support

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