A North American products and equipment producer for the energy industry was working with several different vendors to purchase, rent, and lease the vast amount of the material handling equipment needed for its large manufacturing facilities. The company, part of a larger global organization, was struggling to manage multiple vendors, some of which offered maintenance and others that did not.
As the manufacturing plants included operating heavy machinery including tractors, loaders, graders, rail kings, yard spotters, and more in harsh outdoor environments, maintenance and repair needs were frequent and significant. Maintenance fees were mounting quickly. To solve the challenges associated with vendor management and maintenance service, the company decided to seek a new solution that would streamline its material handling equipment acquisition, service, and costs.
The company met with Harbor Capital Leasing to discuss its challenges with managing multiple vendors and achieving the right level of maintenance support. After learning Harbor Capital Leasing’s deep industry knowledge, expertise, and vendor relationships, it became clear that Harbor would make an ideal partner to facilitate a new material handling equipment structure that would optimize its operations and costs.
Harbor Capital Leasing worked to source a single vendor that could provide all the manufacturer’s equipment and maintenance service’s needs. After facilitating multiple quotes from several top equipment providers that it had existing business relationships with, Harbor vetted the proposals and put forth its recommendation for an all-in-one material handling equipment solution for assets and maintenance. The Harbor team met with all involved parties, including the manufacturer’s corporate office executives, the plant managers, and the individual vendors, to facilitate an ideal partnership.
“Many companies prefer to do their equipment vendor sourcing directly. However, because we understood the customer’s challenges, we were happy to go beyond the typical leasing engagement to bring additional value through our knowledge of the key industry players. We were confident that we found the ideal vendor to deliver what they needed, on time and with the right level of maintenance,” said Robert Escalera, Sr. Account Executive, Harbor Capital.
When Harbor Capital Leasing and the manufacturer agreed on the source vendor, the Harbor team negotiated the contracts with a sharp focus to ensure that the maintenance terms met the company’s needs.
In addition, the manufacturer decided to work exclusively with Harbor Capital Leasing as its financing partner. To start, it entrusted Harbor Capital Leasing with financing agreement to lease equipment for one of its U.S. facilities. Harbor Capital Leasing delivered a customized product that aligned with its equipment maintenance and refresh cycles. Harbor’s leasing solution offers the ability to extend at the end of the term if desired, but also provides the flexibility to return and replace equipment as needed at that point. The custom lease considers the total cost and how the equipment is used in its environment.
Harbor Capital’s leadership and customer-first approach proved to be instrumental in helping the manufacturer streamline and optimize its material handling equipment operations. The team gained the manufacturer’s confidence by managing the entire process from start to finish. Harbor Capital Leasing took the time to understand the unique requirements and challenges, sourced appropriate vendors, reviewed specific equipment and maintenance packages, and demonstrated to all stakeholders, from the corporate office to the plant managers, how the full-service solution would create efficiencies and improvements in its plant operations.
“Every company has unique schedules, needs, and priorities. With a deep understanding of their environment, we have been able to provide this manufacturer with solutions that have ended up saving on total cost. For example, the company had skyrocketing maintenance costs that outweighed the cost of new equipment. Before we came on board, the rigid structure that was in place meant they were stuck with the expensive aging equipment that was causing disruption to the business, and no option to replace it. Our new solution is in full alignment with their environment and as their partner, we are committed to helping them stay as successful, productive, and efficient as possible,” concluded Escalera.
Harbor Capital Leasing is providing the company with significant value that contributes to its overall success. Key features and benefits include:
- Flexible and custom leasing structure
- End of life equipment support
- Leading asset management tool
- Utilization studies/price protection analysis
Minority/woman owned business partner (member of Women’s Business Enterprise Council)