Why is outsourcing your fleet a good idea?
Outsourcing your fleet has become a common practice that is one of the best ways to not only reduce your operating costs but also increase your flexibility with internal resources. Over 60% of small businesses outsource their fleet management. (businessfleet)
Using a third-party provider gives you access to industry experts. Outsourcing your fleet allows you to tap into your service provider’s expertise in areas such as car maintenance, delivery, and driver management. Most third-party fleet providers serve many locations and clients, so they have a wide array of experience.
Leverage a large network of resources. You gain access to a wide network of resources and personnel that can assist you with a variety of needs. Access to more couriers, more vehicles, more warehouses, and more. Third-party providers either have the resources you need or can help you find them at a moment’s notice.
When is the right time to outsource your fleet?
The COVID-19 pandemic has wreaked havoc on the global supply chain, and logistics processes as a whole. Labor and vehicle costs are higher than ever, paired with an increased demand for deliveries in all business sectors, it’s no wonder companies are shifting their logistics process to external partners.
Third-party providers like Dropoff, are already equipped with the network, personnel, and vehicles to ensure reliability and consistency.
If your company is small enough that you can deliver everything yourself using just your employees, you might be able to handle all of your delivery needs internally.
If you have a large operation and need to ship things across the country or internationally with minimal hassle, then outsourcing could work for you. That could actually work better if you choose nationwide courier service.
Plus, outsourcing your delivery fleet allows you to focus on other aspects of your business; without having to worry about scheduling transportation or handling paperwork related to dispatching drivers or moving trucks. You can just rely on a 3PL vendor and spend your time tracking metrics in logistics.
What can you hope to achieve by outsourcing your fleet?
When you outsource your fleet, you can expect a lot of benefits. For example, you can avoid many logistics issues like:
- You can devote more time to your customers, products, and services.
- Your fleet will be managed by experts and will be consistent every day.
- Your fleet will be more efficient, with fewer people driving the same route each day.
- No need to buy new fleets because of wear-and-tear.
- Avoid excess vehicle maintenance costs related to aging fleets, such as oil changes, tire rotations, and scheduled repairs.
- Eliminate employee training costs associated with hiring, orienting, and supervising drivers.
- Reduced payroll and other employee costs because you aren’t paying employees’ salaries or overtime hours.
Finding the right partner for outsourcing.
The process of evaluating a delivery fleet service provider is not difficult and can be done in these four steps:
1. Find a partner with the right capabilities. You want to find someone who fits the needs of your company. The larger the fleet, the more likely you should work with someone who’s well-established with multiple clients in different industries.
2. Talk with the team. This is highly recommended because it gives an overview of their history and allows you to see how they interact with clients.
3. Get references. Client references are helpful as they allow you to get input from people that know the provider well and can vouch for their services.
4. Understand their service standards. When choosing providers, ask them about their customer service standards. Specifically, ask them what type of support they provide during times when things go wrong.
Overall, outsourcing your delivery fleet to a third-party provider can be a great help to your company. It allows you to concentrate on your main business while letting your partner handle the fleet. It’s an opportunity to put some of your resources into growth initiatives rather than the day-to-day vehicle upkeep.