Operating a fleet is a challenge to many businesses due to the time, costs and commitment involved. It involves hiring experienced and qualified drivers, managing routes, safety compliance, taxes, insurance, and payrolls, which could interfere with your core business operations.
However, our dedicated fleet solutions will cover all your transport needs. It’s like outsourcing your shipping to a third-party transport provider. This article explains dedicated fleet solutions and why your business needs them.
What Is a Dedicated Fleet?
Before diving into the benefits of a dedicated fleet solution for your business, let’s start with knowing what a dedicated fleet is and how it works.
A dedicated fleet involves hiring a private third-party service provider to operate your transportation department. The fleet provider is responsible for hiring professional drivers and investing in tractors, trailers, and other equipment to handle your transportation needs.
Dedicated fleet solutions provide business access to a fleet without equipment maintenance or hiring professional drivers. Additionally, dedicated fleet solutions aren’t shareable, meaning the 3PL offers fleet management solutions to a single business.
How Can a Dedicated Fleet Solution Work for You?
A dedicated fleet is more manageable, cost-effective, and essential to your business’s bottom line.
The services are particularly crucial for:
- Sensitive/high value consignments
- Large consignments
- Temperature-sensitive consignments
- Time-sensitive consignments
Dedicated fleet management solutions allow you to channel time and resources towards core business operations. Let’s discuss the pros of dedicated fleet solutions for your business.
Punctual Picks-Ups, Deliveries, and Reduced Claims
A dedicated fleet only serves your business. The drivers, equipment, trucks, and resources are committed only to your freight, giving you more control. There’s no loading or unloading other shipments along the way. As a result, your business enjoys consistent on-time deliveries, better shipment planning, and timely pickups. Also, the risk of damage to your shipment is minimal when using a dedicated fleet.
A Private Fleet at a Lower Cost
Owning a fleet is expensive. Think of the administrative and operational support, maintenance costs, driver compensation, technology, and more. With a dedicated fleet, you won’t incur added costs of fleet management and maintenance.
The fleet provider will take care of the fleet upkeep, equipment maintenance, driver recruitment, and everything needed to keep your products moving. Your business does not provide any resources for freight transportation.
A dedicated fleet solution can handle all your shipping needs. Whether shipping locally or internationally, you’ll get your products to customers within the stipulated time. Additionally, dedicated fleet solutions allow businesses to make use of contract pricing.
Since the carrier can transport your products to desired destinations, you can agree on a contract price, usually applicable for a year. Also, you’ll be operating at capacity within the contract period hence maximizing contract rates.
Will a Dedicated Fleet Work for Your Business?
A dedicated fleet might not be an ideal option for every business. However, most companies can benefit from it if they have a growing line of products and a large customer base. So before you opt for dedicated fleet solutions for your business, it’s essential to examine some factors.
Directions of Freight Flows
You’ll benefit from dedicated fleet solutions if you have networks with outstanding inbound or outbound flows. Although those with exclusive inbound or outbound flows can still use a dedicated fleet, they won’t benefit as much. Thus, it’s essential to consider the direction of your freight flows before choosing a dedicated fleet solution for your business.
Freight Flow Seasons
If seasonality is an issue for your networks, you might under-utilize dedicated fleet resources during off-peak seasons. This scenario could be worse if a change in seasonality affects all your network’s lanes. However, dedicated fleet solutions will be ideal for your business if seasonality isn’t an issue.
Local, Regional, or Long Haul Deliveries
Common carriers apply minimal charges if your local transportation requirements don’t exceed 100 miles. However, you won’t have to pay these charges if you use a dedicated fleet.
Depending on the haul length, some regional deliveries may benefit from dedicated fleet solutions. Ideally, regional and long haul deliveries will benefit from using a dedicated fleet if there are haul-back opportunities.
Simplify Your Business
Many businesses can benefit from dedicated fleet solutions. A dedicated fleet is similar to a low-cost private fleet. You have guaranteed capacity to transport your products to any place, locally and internationally. However, before opting for a dedicated fleet, businesses should consider the direction of freight flows and freight flow seasons, among other factors.
If you’re looking for a company to provide fleet management solutions, trust DM Bowman Inc. for your dedicated fleet needs. Visit our corporate office or contact us by filling out this form. We also have multiple flatbed job positions. If you’re a qualified driver, check out (and apply for) our dedicated fleet solutions jobs on our site.