Is an Ohio Dedicated Fleet Service Right for Your Business?
In any business decision, a cost-benefit analysis is critical. One of those decisions for many companies involves private vs. outsourced fleet operation. Getting your goods from where they are to where they need to be is a time-consuming and often complicated task. Hiring drivers and managing routes, payroll, vehicle maintenance, safety compliance, insurance, taxes – the demands can very quickly start encroaching on your primary business operations. If that’s the situation you’re facing, an Ohio dedicated fleet service might be your best transportation solution.
To be fair, having your own private fleet has some advantages, mainly full control. But that means the cost, liability and responsibility is all on the shoulders of your firm too. For many businesses, that’s too significant a burden. As a long-time third-party logistics firm, we offer Ohio dedicated fleet service to companies of all sizes.
A dedicated service gives customers optimized transportation that can be tailored to their organizational structures. A group of drivers, tractors, trailers and other resources are assigned exclusively to their business operations, facilities or lanes in a transport network. It runs much like a private fleet, but the management and maintenance are outsourced.
Among the potential advantages many On Time Delivery & Warehouse customers glean from dedicated transportation services:
- Improved on-time delivery performance
- Guaranteed capacity (whether you need just-in-time delivery or hot-shot service, dedicated services can assure the fleet is always available)
- Supply chain control
- Reduced freight transportation costs
- Operation visibility and transparency
Beyond that, when you rely on the management expertise of a 3PL to manage your dedicated services, you are then free to focus on managing and growing your own personnel, business operations and financial resources.
If the Fleet Fits: Considering an Ohio Dedicated Fleet Service
There are several factors to weigh when considering if a dedicated fleet service is right for your business.
- Seasonality of freight flow. If your networks are fairly consistent from season-to-season, you will be more likely to maximize utilization of fleet resources.
- Freight flow traffic. If you have a substantial amount of inbound-outbound flow, you will probably see greater returns from an Ohio dedicated fleet service than firms that maybe almost exclusively inbound or outbound.
- Distance of deliveries. If your deliveries are primarily back-and-forth in Northeast Ohio, dedicated fleet service might make the most sense because common carriers typically apply minimum charges. That’s not to say regional and long-haul deliveries wouldn’t be suited for it, but we’d want to examine whether there is backhaul opportunity. Otherwise, we might recommend a different type of tailored transportation service.
- Unique characteristics of your fleet. Dedicated fleets are usually a smart choice if you have either a high volume of deliveries (especially if you’re moving them through several lanes), but it can also be beneficial if you have numerous short-haul deliveries in a day.
- Mode of transportation. Dedicated fleets are primarily for multi-stop and truckload deliveries. If we can help you arrange a pooling opportunity in an LTL or small package network, we’ll do that. But the cost-benefit is really going to depend in that situation on backhaul opportunities in that network. However, intermodal shipments (truck & rail) sometimes present excellent opportunities for onboarding a dedicated carrier. In that scenario, rail covers most of the distance and then dedicated truckload carriers execute the shorter dray portion, which can be cheaper and faster than other alternatives.
- Need for specialized equipment. If your goods have very specific transportation requirements (refrigeration, flatbed, etc.), you may benefit from a dedicated service because that way, you’re guaranteed that the rig you need will be available when you need it.
When you contract with a dedicated fleet service, you get your distribution needs met without the need to invest in the infrastructure. The supply chain and transportation experts at On Time Delivery & Warehouse can help.
Outlook 2021: Fast-rising US truckload rates could reverse course in 2021, Jan. 11, 2021, By William B. Cassidy, JOC.com
More Blog Entries:
Cleveland Trucking Services Explained: Full Truckload vs. Less-Than-Truckload, Dec. 28, 2020, Cleveland Dedicated Fleet Services Blog