Many businesses view ownership and management of a private trucking fleet as an indicator of success. Perhaps you even see companies delivering goods with their in-house transportation system as a status symbol of having finally arrived. However, what if this coveted platform for handling logistics actually delivers more problems than prominence?
Beyond keeping up with the well-known companies in your peer group and beyond, the primary reason many companies pursue building a private fleet to handle their transportation needs is control. A private trucking fleet gives the illusion you are able to manage all the variables that come along with fulfilling and delivering your products. However, this is not always the case.
The real cost of managing a delivery fleet in-house is much higher than you may imagine. Many of the large, well-known distributors operate on venture capital funding while not yet producing a profit. Most businesses do not have that luxury. This environment, however, has created an increased demand for expedited delivery at ever decreasing prices—making a private fleet cost-prohibitive for many businesses.
Operating an in-house transportation system for delivering your goods and products come with headaches beyond just purchasing trucks and employing drivers. Ever changing technological innovations in the industry are expensive to maintain and update. Driver recruitment and retention will be a continual burden on HR personnel and budgets. Putting equipment and employees on the road leaves you exposed to enormous liability, especially if something were to go wrong.
The least well-known bother in maintaining a private trucking fleet is the dreaded DOT compliance. A business with a private delivery fleet must successfully meet all requirements of the US Department of Transportation; which enforces rules and regulations governing the operation of commercial motor vehicles. Companies that fail to comply are subject to hefty fines and other sanctions; which can even include jail time.
Checklists for ensuring both vehicle and driver obedience continue to grow as DOT compliance gets more expensive and more stringent. Every truck must be registered with the government and assigned a unique USDOT number. Knowing and implementing the ever-expanding rulebook for DOT compliance is an added strain for businesses with a private trucking fleet.
Fortunately, a private fleet experience can be obtained by outsourcing transportation to a private fleet alternative like Dedicated Transportation Solutions. Call Dedicated Transportation Solutions today at 864-486-1962 or use the online contact form to discover the benefits of a dedicated contract carriage provider.