For shippers with complex transportation and distribution needs, dedicated logistics is a welcome solution.
What if shippers were able to use the best equipment, manpower, and technology to enhance fleet efficiencies, all while minimizing risk? Well, they can, if they choose to work with a dedicated logistics provider. There are many reasons why this is one of the fastest growing segments in the transportation industry. Here are just six reasons why more shippers are looking at the service as a preferred solution for their transportation needs.
- It offers more advantages than traditional common carriage. Whereas a truckload carrier may offer “dedicated” point-to-point transportation or fleet capacity, a dedicated logistics provider will “dedicate” specific vehicles and drivers to a single customer for its sole use, assuring complete control of the delivery process. These advantages are typically achieved by means of a third-party contractual agreement with a company that allows the shipper to focus on its core competency, leaving tasks like fleet administration, driver recruitment and training, and maintenance to the dedicated logistics provider.
- It provides the shipper flexibility and uses resources more effectively. By utilizing equipment, manpower, service, and technology in an integrated system, the dedicated logistics provider can reduce costs, improve communications, ensure regulatory compliance, and achieve higher levels of customer service.
- It mitigates the shipper’s liability. The agreement transfers the operational concerns to the service provider, taking way the risks involved with running its own trucks, as well as the potential negative impact that can occur with non-compliance to tougher governmental regulations, such as CSA.
- It can do so much more than move freight. A good dedicated logistics program can include many services including detailed needs analysis throughout the supply chain; sophisticated route optimization programs; and specially tailored transportation planning and scheduling, including just-in-time and sequential delivery systems. A quality program assures the shipper 100% visibility of its freight throughout the supply chain.
- It can promote your business brand and increase your visibility. A dedicated fleet can take advantage of branding programs that include custom painting, lettering and decaling, and even complete vehicle wrapping, making the trucking fleet “rolling billboards” for the shipper.
- It gives stability to the bottom line. In a dedicated logistics agreement, the shipper knows what its monthly transportation expenses will be during the contract period. The predictability of the dedicated logistics agreement is a considerable budgeting advantage in a time of economic uncertainty.
Learn more about Dedicated Logistics.