Banking on machines

Streamlining sourcing and utilisation of equipment saves time and costs.

Internet is revolutionising the business procedures and bringing value addition to all the stake holders through out the supply chain. Either, it is cutting retail costs in product sales or distribution costs in music sales. The value of addition of the platform did not limit to B2C but also to various B2B services.

Machinebank.com with support of Quippo construction company is to bring value addition to different stake holders in the supply chain of the construction sector ranging from tendering to auctioning the used equipment.

The platform is available for free for tendering procedures. The companies or individuals can accesses to the online tendering based on their favourite categories. One can bid and view the tendering process, said Keerti Kumar Jain, CEO and MD, Machine Bank.

Once the company wins the tenders, it needs strategic inputs in taking up the project. The niche expertise is only available at the industry giants. Many small companies lack the necessary expertise in terms of strategy, transaction or execution.

“We are trying to provide valuable advises to the infrastructure companies irrespective of their size. Advisory charges may be around 1.5-2 per cent of the project cost and may vary based on the selection of services. For instance, a small construction company has to take decision, whether to buy or rent a machine. As 30-70 per cent of the project costs is being absorbed by machinery, right decision will result in savings and a wrong decision will increase the cost burden of the project. Based on necessary inputs from the infrastructure company, the strategists or advisers of Machine Bank will guide the company in taking right decision,” he said.

Even for big companies, it is not always guaranteed that machinery is utilised all the time. If the machine is idle, there are lot of unnecessary capital and maintenance costs to the company. However, the companies can rent their machines and can convert idle time in to ideal time in a faster pace , he said.

Traditional renting or hiring of machines was happening between the friend circles. However, the online service will bring huge choice for the people renting the machinery based on price, location and avialbility. With the search techniques, the customer can choose the machine in proximity rather than hiring a one which is very far and incur the travel costs, Jain said.

The customer can also put the used machinery on sale or on auction with a reserve value. This enables companies to get the best price in the auction. Quippo Construction equipment company will certify the quality of used machines, clearing the worries on quality for the customers. The new machinery will also be available at a reasonable prices on the site.

Machine Bank is also facilitating the human resource requirements of the industry by enabling infrastructure and construction companies to list their job vacancies. It also aims to bring the finance companies in place for project financing, equipment financing or insuring machinery. The customers can have access to all this information in one place and go for the best of the services.

The listing for machinery renting and sale on the website is free but Machine Bank charges a transactional charge only after renting out or selling the equipment. The rental transaction fee varies from 7-15 per cent according to the plan. However, for the sale, it may range from 2-5 per cent.

Tags: equipment, sourcing, Streamlining, utilisation

Category: Business, Business News