For many CAT dealers, including Kelly Tractor, managing the rental fleet to maximize ROI and profitability is one of the most challenging aspects of the business.
"TARGIT has enabled us to easily pinpoint areas of weakness such as unprofitable product lines or models that incur higher repair expenses than average,” states Katherine Kelly, Sales Operations Manager at Kelly Tractor. “Management can assess when it is the right time to dispose of rental fleet equipment or when we need to change the mix of our fleet, therefore increasing ROI.”
Vital Business Tool
Every department within Kelly Tractor now relies on TARGIT as a vital tool to monitor business trends and facilitate the decision making process. TARGIT is the tool used to generate operating statements and is accessed by every manager based on their area of responsibility. Some managers are often responsible for multiple store locations or departments and can now view their operating results using various criteria, without having to spend time combining data or printing multiple operating statements. For example, a manager who oversees both the West Palm Beach and Ft Myers locations can easily view a combined operating statement, or view each one on its own simply by changing the criteria of the report.
The data in TARGIT is updated on a daily basis so management is able to monitor trends in the operating statement daily or weekly, and respond accordingly, rather than wait a month to view results and take action. In addition, to the operating statements, TARGIT is used to analyze several KPI’s that are critical to any equipment dealer and are relevant to all areas of the business- parts, service, sales, and rental.
Demand Forecasts and Lead Times
The rental utilization reports send a signal to management that certain models are experiencing high utilization and rental rates should be increased in response. Because this data updates daily they no longer face the concern of making decisions using stale data under rapidly changing circumstances.
During both challenging business environments and business upswings, managing inventory effectively is critical to any business. Their reports in TARGIT track inventory levels down to the model level and help them decide how much inventory to order based on demand forecasts and lead times.
TARGIT usage by mid and upper level management teams at Kelly Tractor has been ever increasing since implementation of TARGIT, and currently the managers use the BI suite daily to track performance and make decisions. They rely on this powerful tool because it has increased efficiency and allowed management more time to spend making decisions rather than gathering data. Because of TARGIT, the answers to the questions they have about their business are right at the click of a mouse.
Kelly Tractor adopted the TARGIT BI Suite in the summer of 2010, a few months after going live on Microsoft Dynamics AX. Prior to the AX operating system, Kelly Tractor did not have a user friendly reporting tool that was easily accessible to mid and upper level management. Reporting was done primarily via building queries in DBS and required complicated coding that was unfamiliar to most people in the business. Katherine recalls, “Often, report building was a trial and error process, and formatting the data into a user friendly format required hours if not days or weeks of our people’s time.” Users spent more time organizing data and getting it into a workable format than they did analyzing information and making business decisions. “Implementing TARGIT after AX go-live was the logical path to take because AX now provides us with clean data extracted from tables, whereas data in DBS was often inconsistent in format and unreliable,” says Katherine Kelly.