While a dedicated fleet isn’t right for everyone, it is a great solution for many companies. This blog article discusses the factors assessed for analyzing the cost elements of running your own fleet versus outsourcing to a common carrier. This blog article also discusses a few benefits of owning a dedicated fleet, if you determine a dedicated fleet is the best solution for you.
Dedicated Fleet Cost Analysis Factors
When determining the best solution for your company it is important to assess the various costs associated with owning a private fleet, dedicated fleet or a mix of both. You can work with various companies that will help you to determine these costs. Each partner has their own factors that they look at for a cost analysis. Our analysis looks at the cost of running your own fleet versus outsourcing to a common carrier. Below are some of the cost factors we assess:
- Tractor/trailer utilization
- Driver utilization and pay
- Maintenance costs
- Buying vs. leasing
- Fuel consumption and purchasing strategies
Benefits of a Dedicated Fleet
Besides cost, there are a few other factors to consider before choosing a dedicated fleet. Take into consideration these benefits of a dedicated fleet before making your decision.
1. Specialized Equipment Needs
It is difficult for a private fleet to be flexible and able to adapt to different equipment needed when demand changes. With a dedicated fleet, you are easily able to acquire extra trailers or special equipment with the fluctuations in demand and needs.
2. Demand Needs
As stated previously, as demand changes you may need different equipment or more equipment at different times of the year. Private fleets can present several challenges when dealing with changing demand.
3. Transportation Modes
If your shipping needs include LTL shipping or smaller size shipping, using a dedicated fleet can actually decrease these costs. Since a dedicated fleet pulls from a larger pool of trucks and equipment it help save you money. If your industry needs a wide variety of shipping types, a dedicated fleet can be very helpful.
If you need a dedicated fleet analysis performed for your company, contact us we can assist you in finding the best solution.