Is Your Private Fleet Hurting Your Bottom Line?
May 12, 2017 Comments Off on Is Your Private Fleet Hurting Your Bottom Line?
“Times are different now for companies operating a private fleet. Over the next decade their transportation operations will face big challenges with strict rules, hiring struggles, and competing capital requirements. In short, the risks and responsibilities are greater than ever before for the business owner, drivers, and everyone in-between.” —Brian Webb, SVP at J.B. Hunt.
Private fleet management has greatly evolved since taking off in the 80s as a large-scale transportation solution. We recently sat down with Brian Webb, senior vice president of J.B. Hunt’s Dedicated Contract Services (DCS) division, to discuss outsourcing and how it’s providing new opportunities for business owners with specialized transportation needs.
- What does it mean to outsource your private fleet?
Private fleet management, or outsourcing, is a relationship with a transportation provider. As part of that relationship, trucks and drivers (resources), engineering, and management are assigned to your operations, and fleet responsibilities are assumed by that provider. Outsourcing is beneficial for companies whose private fleet is diverting time and money from their core business.
- Outsourcing wasn’t the right fit before – why would it be now?
Previously, owning and managing a private fleet was essential to a company’s business model. Business owners needed dedicated resources in-house to ensure quality service and timely deliveries of goods, and they only looked elsewhere if additional resources were required for business fluctuations. Today, private fleets haven’t changed much, but outsourcing has greatly evolved to complement their customer-focused service model. Drivers are taking on more responsibilities, including unloading, operating specialized equipment, rotating stock, making unattended deliveries, representing a customer’s brand, installing products, and more.
- Why should I outsource if I already have a successful private fleet?
Many companies believe they are saving money and providing unmatched service levels with the DIY approach, however, in today’s environment, they’re not saving enough money to justify the effort and risk associated with operating a fleet. In other words, if you were in the trucking business, you wouldn’t operate a fleet to make as little as you think you’re saving. Strains caused by regulations, hiring, capital requirements, and driver management, are affecting the efficiency of most private fleets. Companies rarely budget for unforeseen risks or accidents that can cause unexpected hits on your overall bottom line.
- How has technology impacted the transportation industry?
Technology has a huge impact on safety in the industry. Collision mitigation and monitoring systems are resulting in fewer accidents and better mileage efficiency, and our fleets are safer because of them. Larger transportation companies, particularly ones deeply rooted in the industry, are more likely to make long-term investments that exceed compliance requirements, because they can scale investments to see a short-term ROI. It’s hard for private fleets to justify the investments required for technology and people that can utilize the technology. Companies with private fleets typically meet bare minimum requirements for regulations and aren’t investing in additional technology to enhance driver scheduling, routing, and communication. Customers can reap the benefits of those investments.
- Why should I outsource with J.B. Hunt Dedicated Contract Services?
We’re a large-scale transportation provider with a small-company feel that’s invested in your business. Three reasons why you should outsource your fleet with J.B. Hunt:
- You can access the largest network of transportation resources. With more trucks than other providers, our resources are unmatched and can easily accommodate for business fluctuations by assigning additional resources to your operations during seasonal peaks.
- You can leverage more than 25 years of private fleet management experience. DCS has expertise across multiple industries and we provide unique solutions for each customer. We work with a variety customers, including agriculture, retail, construction, medical, food, manufacturing, and home delivery.
- You can depend on us to deliver your product safely while protecting your brand. Your success is our success. DCS invests in a top-tier safety program to mitigate risks and ensure safe delivery of goods.
DCS gives companies the freedom to focus on their business while we take on all fleet responsibilities to reduce risks and increase efficiency. You’re not losing control of your fleet; you’re gaining control you didn’t know existed.
For best-in-class service and more visibility of your operations, contact us at 1.800.325.1068 or .