Whether you’re in food and beverage manufacturing or retail, industrial product manufacturing or forestry, you’ve likely considered whether or not you should transport your own goods at some point in your career.
You could keep transportation and logistics in-house or you could outsource the responsibility to a third-party trucking company. There is no one-size-fits-all solution for all businesses, but asking yourself these important questions can help you make the right decision for your company.
1. Are You Focusing Too Much on Logistics?
Logistics can be a complex and overwhelming responsibility, and the more products you transport, or the higher the risk of transportation, the greater the responsibility. As a result, you may be spending too much time in-house to manage this aspect of your business. Unfortunately, that may mean your core business is less productive and inefficient. If you need to focus more heavily on revenue-generating activities, then it might be best to outsource and let a third party handle fleet management. This move may increase both your productivity and profitability in the long run.
2. Are You Paying Too Much to Manage the Task In-House?
As mentioned, fleet management can be complex. It can also be expensive to manage logistics in-house. You will need to pay for labour, maintenance, repairs, and more directly. A third-party fleet management provider will be able to meet all of your needs, while increasing efficiency and reducing costs. That’s because fleet management is all they do. And due economies of scale, they can often get better rates for parts vendors, vehicle dealers, and more. They’re also experienced and equipped to high and train great personnel to manage the fleet, leading to greater productivity and, as a result, cost savings.
3. Are You Unsure of What You’re Doing?
Trial and error can be costly. If you’re making mistake after mistake, leading to wasted time, wasted dollars, and big problems, it may be best to outsource. Fleet management providers are experts at what they do. They know the best practices and can identify potential problems and resolve them before they become big issues for your company. They also have the best procedures and policies in place to drive efficiency.
4. Are You Taking Too Much Risk?
Outsourcing allows you to transfer risk to another party. The fleet management provider will take on the risk of cargo liability, asset maintenance and investment, driver compensation, and insurance coverage. Your hands will be clean, and your brand will be intact in case anything occurs. Fleet regulation and compliance requirements won’t be your hassle to deal with anymore. This peace of mind alone might be worth outsourcing.
5. Is Your Technology Out of Date?
Investing in fleet management trucking technology can drive efficiencies in your business, but it may not be an investment you want to make. Fleet management companies make ongoing extensive investments in their technologies. From GPS tracking of truck drivers, route planning and load optimization to scheduling, fleet maintenance, and compliance, you should be able to do more with your technology—or take advantage of a third party’s tech.
6. Are You Trying to Reduce Overhead?
If reducing overhead is one of your key goals, then look no further than outsourcing. It’s an excellent way to reduce overhead costs such as salaries, benefits, and equipment.
7. Do You Have Key Performance Indicators?
Key performance indicators (KPIs) can help you ensure future success. Without them, you could be wasting time and resources. A dedicated fleet management company will be able to track and analyze the appropriate metrics and establish KPIs connected to your business goals. The company will scrutinize vehicle purchasing and maintenance, repair and downtime turnaround, ongoing costs, driver training, and more to enhance your operations.