The rise of rental models in sustainable business practices

Mats rental servicie

In reviewing our business purpose, we have become more convinced that the renting model is a perfect fit and, in some cases, a fundamental substitute for sales… At least in our world of technical doormats! 

The concept of renting fits more into the modern world and is part of the continuous business improvement we are immersed in. It is a friendlier solution for the planet and contributes to the sustainability of the industry.

Why are organizations so slow to embrace this change with so many benefits? 

There is an obvious fear of the “new and unknown”. But the concept of “renting” is no longer an adversary to traditional models, but rather a new way to differentiate and balance the cost structure in an organization, allowing better control of trading and resources. Today, especially in times of crisis, the instinct for cost accuracy in business management makes even more sense.

1. Rental and profitability in the medium and long term: the profitability of a renting or leasing model makes more sense in today’s organizations, since the proper reuse and maintenance of a textile product can multiply the useful life factor by more than 20 times.

2. The fight against mass consumption: The “buy and throw away” culture is increasingly being questioned within organizations and purchasing departments. Company managers are more aware of the importance of environmentally friendly consumption and waste management for the planet we live on. Today we are starting to see a clear implementation of change, led by many EU countries in their commitment to the Paris Climate Agreement. 

3. The cyclical logistics service: the rental model requires a very precise and systematic distribution operation that allows the greatest optimization of logistics operating resources. It is a big clock that does not stop and is continually affected by monthly, weekly, daily and even hourly adjustments at the beginning of each customer’s life and is only interrupted when the service to that customer is completed. The model requires a big gear and cutting-edge technology that is able to cross-reference hundreds of data that are continuously entering and leaving the system. 

4. Reuse of raw materials: as suppliers of maintenance products and services, we focus on two main aspects: materials technology and product quality. We continually look for ways to improve raw material performance and apply internal processes to review and reuse components to adapt stock and get the most out of it before it is recycled or destroyed. This is one of the ways in which we differentiate ourselves and contribute our greatest value to the circular economy ecosystem.

At FelpudoRent we have been working for almost 10 years on our continuous improvement processes to achieve the best results in terms of efficiency and performance. Every year we aim to introduce automation improvements and thereby improve our service to the customer (our keystone). We have a strong commitment to change towards a company that leaves a positive climate footprint.