Originally appeared in Fleet Owner
Ensuring profitability in today’s highly competitive global marketplace is a significant challenge for businesses of all sizes. Each organization must find ways to reduce costs, streamline operations, and increase efficiencies.
That means having a laser focus on your company’s core competency. If manufacturing a product is your core competency, you likely use a fleet of trucks to get that product to its destination; however, trucking is not your core competency. However, owning your own fleet is a major expenditure. At a time when companies are looking to conserve cash, a much smarter move would be to work with a full-service lease provider.
With full-service leasing, the customer is still in control
Some business leaders are concerned about losing control when outsourcing functions like fleet management. However, with full-service leasing, a company gets predictability, customization, and a long-term commitment with vehicles specifically tailored to their needs and requirements. The full-service lease provider also ensures flexibility that can respond to market changes and seasonality, enabling businesses to scale a fleet up or down as needed.
Owning your own fleet is prohibitive unless you are a major player. It’s not just the cost of the trucks and the technology that keeps increasing. It’s also keeping on top of maintenance and ensuring compliance with state and federal regulations. With full-service leasing, burdens such as regular maintenance schedules, emergency repairs, and regulatory compliance become the responsibility of the lease provider.
With full-service leasing, a company gets a predictable cost structure since leasing agreements typically include fixed monthly payments that cover maintenance, repairs, and other associated costs. This will deliver significant cost savings over the long run since the ability to accurately forecast transportation costs will enable companies to allocate resources better and focus on core competencies.
Technology, tools, and driver safety
Transportation technology continues to advance, from ADAS and other safety features in the vehicles to the latest logistics, vehicle tracking, and route optimization software that ensures the product arrives on time and in good condition. Keeping up with these advancements on your own is a considerable investment, but full-leasing providers regularly upgrade their fleets to incorporate advancements in fuel efficiency and emissions standards. In addition, newer equipment results in safer conditions on the road, improving driver safety and reducing downtime.
Risk mitigation and compliance
One thing you can be sure of is that regulations will change—constantly. Navigating this ever-changing landscape is incredibly time-consuming, yet not doing so can lead to noncompliance, leading to heavy fines and operational disruption. Full-service leasing providers again take that burden off companies. They assume responsibility for ensuring that vehicles meet all regulatory standards and undergo mandatory inspections and certifications.
Full-service leasing lets you get back to business—your business
Growing your business is your main objective. The less money, resources, and staff you devote to ancillary but necessary functions, the more quickly you’ll achieve that objective. By partnering with a reputable full-service leasing provider, you can leverage that organization’s expertise to enhance efficiency and reduce costs on the ancillary function of transportation while you focus on driving profitability and growth.
