Note: Today’s post is part of our “Editor’s Choice” series where we highlight recent posts published by our sponsors that provide supply chain insights and advice. Below is Rafael Granato’s take on transportation trends.
Here are the pros and cons of investing in a fleet of vehicles and hiring operators to drive them, versus relying on third parties to manage your freight, logistics, and transportation.
The trucking capacity crunch, the driver shortage, and the ever-increasing costs of transporting goods via a third party are all pushing more shippers to consider the private fleet route. The uptick in e-commerce and the demands that come along with it—faster delivery times, smaller orders, higher-velocity fulfillment operations, etc.—are also driving companies to consider what it would be like if they had their own fleet of delivery vehicles and a driver pool to choose from for some or all of their deliveries.
So, rather than depending on a carrier to move their freight, companies invest in vehicles, drivers, and everything else needed to run a dedicated fleet. In return, they gain complete control of their transportation operations, always knowing that capacity is available, and have 100% visibility over those operations (versus depending on a third party to supply that information to them). If these benefits sound compelling, be sure to consider these five realities of private fleet ownership before investing in your own: (For the rest of the article, click HERE)
