DEDICATED TRANSPORTATION: Outsourcing fleet management to a third party

  • Managing a private fleet has many challenges for shippers. Fleet management is often not a core competence. Buying or leasing equipment, purchasing fuel and insurance, driver recruitment, training and retention, all produce headaches, even for fleet management experts. Over and above the fleet itself, a shipper needs to find backhaul freight in specific locations to run a cost effective two way operation. They also need to be able to adjust the size of their fleet and driver team to meet seasonal fluctuations and ever-changing customer requirements. Of course one advantage in maintaining a private fleet is that it provides a shipper with more control over their supply chain.

    Many of North America’s leading shippers have outsourced their private fleet operations to dedicated fleet management companies. If carriers continue to maintain tight control over the size of their fleets, this may put more pressure on shippers to consider the dedicated fleet option.

    This panel will consist of a major shipper and the leader of Canada’s largest dedicated fleet management company. The shipper will discuss the issues they considered and the process they went through to select a dedicated fleet operator. The two parties will outline the keys to a successful implementation and provide an overview of some of the Best Practices in Private Fleet Management.

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