How Fork Rent is using effective fixed asset management to stay compliant, calculate fleet depreciation and streamline business processes for the benefit of customer relations
For over thirty years, Fork Rent PLC has been at the pinnacle of plant-hire. Despite the previously tough economic climate, the privately owned firm, based in Ipswich, has risen to be a powerhouse in the UK. Fork Rent is now more than just a plant-hire company. Not only does it possess the UK’s largest and newest fleet of Telehandlers, it also offers a range of other services and continuously strives to deliver an ever improving service that all our customers deserve, always ensuring top quality at all times.
After being named in the Times100 fastest growing privately owned company list in 2013, Fork Rent is now takings steps to ensure that its growth doesn’t slow down. The company recently spent £50 million on a significant capital investment and needed to look for an effective fixed asset management system that could help manage it, eventually purchasing Real Asset Management’s (RAM) fixed asset and depreciation forecasting products.
Below, Interim Finance Director, Nick Pulford, provides a brief summary about how RAM is helping him to manage Fork Rent’s huge asset base.
A bit about the asset base
At Fork Rent our equipment has cost in excess of £100 million, therefore it is imperative that we are able to keep control and monitor our plant, knowing the current and future values by asset, class and type. With over 3000 assets on short term hire, our constant challenge was to maintain control.
It was clear that we required a method of logging fixed assets and their value, tracking their locations and then forecasting depreciation and seeing what this meant for our business. The reporting element of this was vital so we can be sure we’re compliant with the latest reporting standards. The RAM solution will really help us to target this.
Key aspects of Fork Rent’s growth
Our current fleet is replaced at two year intervals, meaning equipment purchases in excess of 1000 machines a year. With such a large number of equipment sales, we need to easily identify units that are due for sale, together with full and accurate financial information concerning current net book values and replacement costs. RAM’s software will automate this process and provide us with forecasted P&L statements at both summary and asset detail level. As well as the significant time saving, sale decisions can be optimised to minimise asset ownership costs and contribute hugely to company profitability.
The importance of implementing new products
In today’s fast moving business world, it is essential to review all important processes and procedures regularly. We previously used a fixed asset management product that simply wasn’t robust enough for our needs and recognised that improvements were required. The replacement systems supplied by RAM are a lot more suitable for the growth and on-going evolution of our business. They provide us with a comprehensive fixed asset register and effective asset management that includes forecasting and reporting for various financial standards.
The depreciation forecasting module, which will enable us to forward-calculate asset depreciation, is particularly important with the upcoming switch to IFRS and the associated obligation to more robustly consider the impact of depreciation policies. The asset accounting product – which is being implemented in conjunction with a Business Intelligence (BI) tool– will enable us to report on data in a much more effective way.
Benefits to the end user - the customer
By using RAM's software, Fork Rent PLC achieve accurate asset accounting in efficient and cost effective manner, thereby releasing more capacity within the business to concentrate to growth and delivering the top quality service to their customers.
The latest changes at Fork Rent are aimed at not only supporting the future growth of the business, but also at helping the company to offer a better service to its customer base. The implementation of RAM's software will assist with this and will also help Fork Rent to ensure effective management of its fleet and future investments.