Topic > Innovative Methods in Logistics

The car rental industry in the United States is currently dominated by three major companies: Enterprise Holdings, Hertz, and Avis. Enterprise Holdings, the largest of the three, whose revenues nearly equal the combined sales of Hertz and Avis, operates as Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands. Pat Farrell, Chief Marketing & Communications Officer of Enterprise Holdings, noted that the car rental industry is experiencing major changes due to factors such as innovative new technologies and evolving consumer preferences. He cited changes in customer preferences due to new digital and mobile technology as the biggest driver of change – and opportunity – in the industry. Technology – from the Internet, to social media, to mobile platforms – has really given control to the consumer, he said. The better we use these avenues, the stronger the loyalty and relationships with our customers will be. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Farrell said the car rental industry is encountering major changes from factors such as modern creative innovations and the advancement of customer inclinations. He cited changes in customer inclinations due to modern, advanced and portable innovation as the biggest driver of change – and opportunity – in the industry. Innovation – from the Web, to social media, to versatile platforms – has effectively given the consumer control, he said. The better we use these avenues, the more ingrained our customers' devotion and connections will be. The advent of smartphone apps has now reshaped the way the rental car industry operates. A 2015 study by Cognizant found that when travelers use rental companies, they find the most value in simple, easy-to-use booking technology and customer interface software. With automated or streamlined reservations, rental companies can improve the customer service experience. Major rental companies like Hertz and Enterprise use automated checkouts. Avis sibsidiray Zipcar, for example, allows customers to book cars spontaneously with their mobile phones instead of making reservations in advance on PCs, which has made it much easier for customers to find cars where and when they want them. Unlike a large car rental company, it arranges numerous short-term rentals in widely distributed locations. Customers must return the car to the starting point, which is often located on a side street, a different model from the central lots used by most rental companies. Zipcar, controlled by Avis, and Enterprise Car Share, controlled by Enterprise Rent-a-Car, for example, have set up their fleets equipped with telematics systems. This allows companies to automatically access and track the location of the vehicle and make reports. Logistics plays a key role in operational efficiency. Fleets must be managed so that vehicles are available when and where customers require them. Zipcar has found a much easier way to manage its challenging logistics. At Zipcar's fleet control centers, operators can track vehicle demand, driver bookings and car maintenance schedules using internally developed software called Fast Fleet that it is marketing to other vehicle management companies. Zipcar relies on hardware mounted on the windshield of each car: the so-called “black box”, which includes an RFID transponder and a data link.