In the world of logistics and supply chain management, one of the largest challenges that businesses face is keeping their inventory moving without disruption. Current (and future) changes in the landscape that affect the way we transport goods can have rising costs that put a strain on a company’s day-to-day operations, profits, as well as employee retention. That’s why it’s more critical than ever before to pay careful attention and adjust where needed with fleet management solutions for your business.
There are three ways to look at your transportation logistics: leasing, owning a private fleet, or having a dedicated transportation solution that a third party manages for you. In this article, we’ll explore each option to help you make the best decision based on your needs.
Owning a Commercial Vehicle
For companies and individuals, there is a rewarding feeling of owning your own commercial vehicle. It’s a perfect choice for companies that want absolute control of their fleet management. Owning a truck, tractor, or other vehicle is also a viable option if you don’t have many routes or require changes such as changing from dry storage to refrigerated items. However, ownership comes with the drawback of depreciation if you ever decide to sell or upgrade your fleet. Plus, while you do get tax deduction benefits, you can also receive these from leasing a commercial vehicle.
Leasing a Commercial Vehicle
If your company doesn’t have a lot of time to focus on fleet management, leasing vehicles for transportation needs is one of the best options. Rather than worrying about the residual value, a truck is built out to handle your operations at a cost that’s lower than owning. And, when you choose to lease, you pay monthly on your rental which includes the following:
- Maintenance when needed at no addition cost (oil, brakes, air filters, etc.)
- A replacement rental vehicle in case you run into a breakdown on the road
- Simple branding, licensing, and legal coverage for your business
Leasing a box truck, trailer, reefer, or any commercial vehicle can help you save a tremendous amount of money in the long run, especially when you need multiple vehicles that serve different purposes. Plus, if you have longer routes, it’s also a safe option when you need immediately accessible breakdown assistance. Dedicated Transportation
If you operate a fleet of 10 or more vehicles requires a significant amount of logistics management, you’re having trouble hiring drivers, you need data and predictive analytics, and want more time to manage your business, hiring a third-party logistics (3PL) company to handle your transportation needs is likely your best option. A 3PL provider covers everything with a dedicated transportation fleet, including:
- Right sized fleet
- Route scheduling
- Trained drivers
Additionally, dedicated transportation helps to combat the challenges of owning your own fleet, such as navigating labor shortages, gas & freight rate volatility, cost challenges, and uncertain capacity. This solution also increases reliability, uptime, visibility of your supply chain, and improves business intelligence so you can focus on other areas of your company’s priorities.