In the ongoing hunt for efficient supply chain solutions, more industries are recognizing the value of a dedicated transportation strategy. Dedicated transportation grants businesses access to fleets of tractors, trailers, and/or drivers along their most frequently-used routes. These fleets transport goods on a regular schedule to set locations, simplifying the logistical tightrope companies are often forced to walk as they move time-sensitive freight across the country.
The 3PLs supplying these shipping resources – also known as dedicated freight, contract freight or primary freight – contribute significant expertise in navigating sudden, complex supply chain issues as they arise.
Here are 10 reasons more companies are turning to a dedicated transportation strategy:
1. It’s the easiest way to manage a fleet. A dedicated transportation solution is like having your own private fleet without the hassle of in-house management. Tasks related to hiring and compensating drivers, implementing technology, performing routine maintenance and even administrative and operational support are handled for you. Not only will this provide relief from administrative tasks; it also improves your bottom line.
2. It streamlines communication. Your access to a dedicated fleet goes through one main point of contact, simplifying the task of ongoing communication as freight works its way toward its destination. A dedicated transportation partner will also lend their expertise to avoid common logistical pitfalls and provide the best service possible.
3. Shipments are handled with care. Choosing dedicated transportation is the easiest solution for freight in need of special handling or delivery. This can include deliveries at job sites, deliveries that might require installation or freight containing sensitive or high-value products, as well as temperature controlled freight.
4. Improves efficiency across the board. Consistent trucking along familiar lanes means drivers are able to learn optimal routes, better cater to customer preferences and be prepared to handle transactions more quickly. Drivers and customers alike are incentivised to see wait times reduced.
5. Increases your company’s flexibility and customization. It’s effectively your fleet; that means you control when and where your goods arrive. The delivery schedule is fully tailored to keep your shelves stocked the right amount for every season. Depending on your transport partner, customers may even have the option of identifying tractors, trailers, and driver uniforms with your company’s branding (rather than the carrier’s) and advertise on the road.
6. Aids shipment reliability. One of the biggest advantages of a dedicated fleet is a steady stream of inbound and outbound shipments of goods. It’s easier to schedule deliveries in advance and at the end of the month when delivery is at its peak. Freight moves constantly with a dedicated transportation strategy, which is especially beneficial if you’ve scheduled multiple stops for your product. Companies are also guaranteed capacity – something no shipper takes for granted.
7. Optimizes your warehouse space. Whether you’re shipping local, regional or along long-haul routes, a dedicated transport strategy can help free up warehouse space and thus establish a more cost-effective supply chain with goods stocked closer to their final destination.
8. Expands control over shipping costs. Dedicated transportation solutions are far more likely to provide partners with consistent pricing and lower rates over time. Due to the relative predictability of shipments and routes, companies are less likely to deal with “empty miles” or other delays that might typically drive up shipping costs.
9. Provides additional supply chain stability. Not only are businesses more likely to enjoy dependable prices – they also benefit from the stability of a longer-term agreement. Most trucking contracts are annual, which means your company can plan budgets and forecast shipments further in advance.
10. Reduces risk. When you choose a team to provide a dedicated transportation fleet, they’ll assume the risk of accidents, repairs and other unforeseen costs. In a landscape of rampant supply chain disconnects, a transportation partner adds peace of mind.
Outsourcing complex shipping processes can save your organization money and a major headache, as changes around the global supply chain continue to reveal themselves across virtually every industry.