A typical business or trade involves the buying and selling of goods, and would most likely require the employment of varying services offered for truckloads in order to deliver goods. Most companies, whether big or small, may have varying transportation needs to aid their business. In many ways, a truck fleet dedicated for a specific company’s needs is the heart of their business. However, maintaining a private truck fleet is very expensive. A company who wish to operate their own private truck fleet needs to spend a large amount of money for the maintenance of trucks and fuel.
Some trucking companies have dedicated services offered for truckloads. Companies may outsource their transportation needs from trucking services. First, let us discuss the disadvantages of private truck fleets and why outsourcing should be considered instead. The primary reason is that operating a private truck fleet means higher cost. If trucking is not your main business, it means you do not specialize in its operations. Which subjects you to empty backhaul, lack of trucking management skills added burden and overhead, specific trucking capital requirements, liability for cargo damage, liability for cargo theft, liability for accidents, increase paperwork, and additional administrative cost. External factors also include the volatility of prices of fuel and inevitable changes in road regulations. Thus, outsourcing is more feasible and cost-efficient.
A trucking company has more management skills and knowledge in this field since they specialize in the transportation of goods. Outsourcing does not mean the business will not have full control over the fleet. The fleet is dedicated to them, therefore it only answers to their needs. It can still project their own company image in the marketplace as well, they only need to specify. It would be one less headache to the business as the entire transportation section is delegated to the outsourced company together with its challenges and complexity. The outsourced company provide the complete fleet management and cater to your distribution needs by just paying a premium for the service, therefore regardless of the volatile fuel prices, the expenditure is constant. The outsourced company also take care of their own trucks, so maintenance is not your problem anymore. Most outsourced trucking company for dedicated truck services also have insurance included in the contract so your business will have little to no liability in most cases.