With regulations growing more stringent, costs escalating, and changing market conditions, there are many factors to consider when choosing between owning a fleet or having a dedicated transportation solution.
Conventional wisdom is that owning a fleet provides companies with more control along with the advantages of guaranteed capacity and operational visibility. There is also the belief that owning a fleet can lead to the option of additional revenue by shipping goods for other companies when capacity allows.
However, a private fleet can also lead to unpredictable expenses from maintenance, increased vehicle downtime from aging fleets, plus time and resources needed to keep up with rigorous compliance and regulatory requirements. Other challenges private fleets face include having to deal with the worsening driver shortage, fuel costs, supply volatility, capacity flexibility, and fluctuations in customer demand.
Using a dedicated fleet from a third-party logistics provider (3PL) such as Ryder enables you to:
- Reduce distribution costs through a right-sized fleet including equipment costs, weekly miles, and saving on fuel and labor.
- Drive efficiencies by getting the capacity and flexibility needed to ramp up and scale down during peaks and valleys.
- Provide exceptional service from professional drivers, who are trained for your business and customer needs as an extension of your company.
- Improve on-time delivery performance with a reliable fleet and drivers. If a driver is sick or a truck breaks down, the issue can be resolved without disrupting service.
- Free up manpower by transferring the risks of safety and regulations compliance to the dedicated fleet and taking the distractions away from your business.
- Get up-to-date data from on-board computers that track mileage, on-time performance, and fuel efficiency.
Along with the challenge of delivering orders on time, businesses have seen freight rates increase approximately 7 percent in the past year. Coupled with the driver shortage, capacity constraints, changing federal safety regulations, and loss of productivity due to hours of service (HOS) changes, it’s easy to see why companies have a difficult time managing their transportation network when it isn’t a core competency.
These increasing complexities limit the time you can spend focusing on your business. By collaborating with a 3PL, like Ryder, a dedicated fleet gives you the advantages of owning a fleet without having to deal with the challenges that could stifle your bottom line.
Royal Building Products experienced this firsthand when they owned their own fleet. That’s when they partnered with Ryder for a Dedicated Transportation Solution that allowed them to focus on their core business and meet customers’ needs.
As its third-party partner, Ryder has helped Royal develop a highly efficient, dedicated transportation network that enables the company to quickly respond to changes in demand and market conditions. The dedicated fleet, which supplies 23 drivers, 23 tractors and 38 trailers, goes beyond delivering freight to help Royal capitalize on synergies between its three locations, advance its sustainability goals, and reduce costs.
Since moving to a dedicated fleet, Royal Building Products has saved over $500,000 annually in backhauls, reduced its fuel costs, experienced shorter lead times, and improved all customer service levels.
The added benefit of moving to a dedicated model has given Royal the ability to focus on its core business and not the trucking business.
To learn more about how a Dedicated Transportation Solution can work for you, visit our website.