Is it Time to Outsource Your Fleet?
Could letting someone else handle your deliveries boost your business?
Many businesses have decided to outsource their fleets over the past 12 months. Several factors have contributed to this move, including high labor and vehicle costs, increased demand for deliveries, and the need for companies to focus on their core business initiatives, rather than managing fleet operations.
Is your business ready to relinquish driver, vehicle and scheduling issues so you can focus on what matters most? One of the biggest advantages that come with outsourcing a fleet is the time and built-in problem-solving you gain. The best delivery companies offer 24-hour support, plan routes and manage their own drivers, giving you more time to devote to customers, products and services. Most companies also find that outsourcing their fleet streamlines operations, simplifies their budget and reduces payroll and capital expenses.
Simplify Your Budget
Insourcing a fleet requires budgeting for vehicle costs, fuel, insurance and labor, along with several other line items. Companies typically need someone to manage this budget along with drivers, and deal with customers, and track deliveries. Outsourcing your fleet simplifies your budget to one line item. You’d be billed per delivery and wouldn’t need to manage all the other costs. In many cases, the cost of outsourcing your fleet will be less than keeping it in-house.
By outsourcing your delivery work you’ll reduce personnel costs along with capital expenses. You won’t need to spend money recruiting drivers, fixing vehicles or renting extra vehicles when delivery demands increase. Most delivery companies will offer you a combination of set delivery prices based on miles driven and the vehicles used.
Some companies believe that keeping their fleets in-house gives them better control over their deliveries. While insourcing your fleet may give you more control over branding, it really doesn’t provide much else. In fact, outsourcing a fleet often gives you greater control over your delivery work. You’ll have additional drivers and equipment when you need it. You’ll be able to schedule deliveries outside of normal working hours. You’ll likely gain valuable insights into your deliveries when you outsource your fleet because you’ll get access to customized performance measures like time in transit and delivery verification tools. Most businesses find they know more about their deliveries when they outsource the work.
Isn’t it Risky?
It’s understandable that companies can be nervous about outsourcing their delivery work. The biggest risk is choosing a delivery partner that’s right for you. Once you’ve found the right partner you’ll see that the risks are actually minimized. You’ll no longer have to worry about what to do when a driver quits or calls out sick, or when you need an extra van but don’t have one. You’ll also free up resources so you can focus on your core business and leave the transportation of items to the pros. The biggest risk could be keeping your fleet in-house. Do you really know how much you’ll need to spend on vehicles, how long your drivers will stay with you, or what your delivery demands will be? Outsourcing lets you take control of those risks.