By: Ben Cubitt, SVP of Consulting & Network Services
Over the past five years, shippers—especially consumer packaged goods (CPG) companies—have added dedicated fleets to their transportation networks to gain greater control over some volume of their freight spend. Dedicated fleets help shippers minimize reliance on the spot market with associated higher costs, as well as improve performance and service.
When dealing with weather emergencies, healthcare and economic crises that disrupt traffic and supply chains, flexibility in fleet capacity is a must. Dedicated fleets help avoid ongoing disruptions in over-the-road (OTR), rail and intermodal markets. Shippers with flexible fleet capacity have greater control to better manage their transportation planning and budgets.
Shippers have multiple dedicated fleet options with various designs based on their network flows, profiles and logistics needs. Whether shippers have a local fleet, regional network fleet, surge fleet or multi-shipper collaborative fleet, it is critical for fleets to be actively managed from design to execution.
Here are some tips to help companies optimize dedicated capacity:
Shippers need to decide if day-to-day management of their fleet capacity will be a core competency or will be outsourced. Some shippers build this capability in-house while others partner with a 3PL or logistics technology and services providers to manage the complex and time-consuming process.
A third party provider can bring many benefits to fleet management including experience across multiple industries, core carrier fleet capacity and an ability to leverage their network for fleet backhauls. They can also establish best-in-class fleet dashboards and KPIs that drive fleet optimization and continuous improvement, help shippers with short-term surge or pop-up fleets and include shipper lanes in a multi-customer collaborative fleet network.
At Transplace, we are seeing that dedicated fleets are a growing trend throughout our network and we are partnering with shippers to help evaluate opportunities such as:
To learn how Transplace can support your business with dedicated capacity or provide a fleet assessment, reach out at https://www.transplace.com/contact/connect-with-an-expert/