Construction World February 2017

COVER STORY

Contractors learn the VALUE OF TOTAL SOLUTIONS

By Paul Crankshaw

Fleet owners in the construction sector are relying increasingly on original equipment manufacturers to provide a total solution that adds value to their bottom line.

Service-driven Even the most durable trucks need care and assistance to ensure flawless operations. Scania’s total solution provides this, with services including: A Fleet Management System that provides flexible data packages to increase the productivity of fleets; an extensive repair and maintenance network; rental trucks to meet peak demand; roadside assistance; remote diagnostics; finance and insurance; and driver training. from their own yard for weeks at a time. Scania addresses this need with a mobile service unit – a substantial panel van fully equipped with all the necessary servicing equipment, as well as basic equipment for minor repairs. “This option allows a customer to book a service at a convenient time of the week and at just about any location, including remote sites where the truck is operational,” he said. “Judging by the popularity of this service, we expect more customers to be taking advantage of this service option in years to come.” Looking ahead, he also sees potential in the concept of a container workshop in South Africa – which has been used to great effect in many countries; it follows a similar approach to the mobile service units – only larger in scale and capacity. “Large construction sites with a longer life-span could be well served by such a solution, which could be scaled up from one to a number of containers,” said Erasmus. “When the project is complete, the containers can be moved on to their next area of operation.” For customers with more established workshop facilities and the capacity to take on more of their own servicing requirements, there is also the option of becoming accredited by Scania to operate as a recognised outfit serving in-house needs. Inside finance A vital aspect of Scania’s total solution is providing customers with tailored

Slimmer operating margins are also pushing contractors to take full advantage of modern truck technologies – as well as the range of product options and services that make for a revenue- generating investment. For Scania South Africa, this means working with customers to develop a tailored product that will suit their specific application, and supporting the customer with finance, insurance and a service network that is aligned with their needs. Finance for truck acquisition can be arranged through Scania Finance, with flexible solutions that ensure predictable costs and manageable risks over the entire life cycle of each vehicle. Scania’s extensive network of dealers and support services – from repair and maintenance to roadside assistance and parts availability – optimises machine uptime and builds enterprise sustainability among customers. Total solution With a well-established long-haul pop- ulation in South Africa – it commands over a fifth of SA’s market share – Scania is now seeing steady volume growth in the construction sector. “It’s not just about having a reliable product, it’s about having the total solution – which is what the customers in the construction industry are requesting,” said Alexander Taftman, General Manager for Pre-Sales, Segment Support & Marketing at Scania Southern Africa. “What is really important to construction customers is uptime and payload; uptime cannot be guaranteed only by the best product – you have to have the best support package too. Taftman emphasised that the margins in construction were narrow, so vehicles needed to be optimised according to their application. “For instance, every kilogramme of weight saved in the body specification can allow a better payload that will generate more income for a contractor,” he said. “Our approach is to ensure that we address each of the many sub-applications within the construction sector with a range of models

and specifications, to suit each customer’s specific operations.” The focus on uptime among contractors also means that customers require an original equipment manufacturer and supplier that will partner with them in managing their overall fleet performance and maintenance, said Mark Erasmus, General Manager for Scania Services. “Customers want to be able to share the responsibility with the original equipment manufacturer – who has the tools and expertise – for a fixed, regular sum for which they can budget,” said Erasmus. “Many argue that maintaining a truck fleet is not their core business, and they prefer a full service contract.” One of the responses to this requirement is Scania’s Fleet Management System which offers a range of flexible service packages such as Monitoring, Control and Data Access, that allow customers to focus on other important aspects of their business operations. Uptime pressure “With construction becoming so much more competitive, customers are under a great deal of pressure to ensure more uptime,” he said. “For instance, they increasingly don’t have the luxury of time and distance to take trucks out of operation for extended periods for maintenance at a centralised dealer’s workshop. Our responsibility is to make the customer’s experience as painless as possible when their vehicles need to be taken off duty for maintenance or repairs.” To respond to these customer needs, Scania takes a flexible approach; among the smart solutions for regular service work and minor repairs is an on-site facility for customers whose requirements warrant it. “We can set up in the customer’s yard, for instance, so that we are available with our skilled people and our equipment at a location that better suits the customer’s operational requirements,” said Erasmus. Another challenge facing contractors is when their trucks are being employed far from their company base – as is often the case in construction projects. In some cases, their vehicles are away

financial packages that strengthen business sustainability and help customers withstand the cycles of the construction market; this is

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CONSTRUCTION WORLD FEBRUARY 2017