There have been a lot of advances made in shipping logistics the last few years thanks to the Internet of Things and other technology like predictive analysis that makes it easier to make bigger profits.
If you are not exactly in the shipping business then this still affects you. If you have goods that need to get to market then you either need to have your own fleet or you can outsource the delivery to another company like California Courier Services or something similar.
In this article, I will go over what you need to know when starting a business when it comes to the shipping so you know the best way forward.
Advantages of having a private fleet
There are factors that are going to determine really how much of an advantage or not a private fleet is such as the size of your business. However, in many cases, these are good reasons why you should be thinking of creating a delivery fleet for your business.
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Always at capacity – Your deliveries are always going to be out for delivery when you have your own fleet. No matter how busy you are and how many orders need to get out, you are far more in control because it is your fleet. If you outsource and find yourself with a sudden surge of orders, you may find that you aren’t afforded the necessary capacity as they have other orders. They may have only devoted a small amount of their fleet to you based on previous numbers.
Better customer service – When you rely on a third party to deliver your goods, you have no control over how their drivers and other employees behave professionally. When they are your drivers then you can train them the way that you like so they reflect the customer service philosophy of your company and not somebody else’s.
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Ability to customize – You may need a special type of fleet to handle the deliveries that your products require. In which case it is very important that you have your own since it may not be possible to hire out a fleet in the way you need.
Advantages of Fleet outsourcing
Cost savings – In many cases, your business is going to save a lot of money when you outsource your shipping needs. For instance, the cost of labor for the drivers plus the insurance for the fleet can take a huge chunk out of your profit margins. Plus, you aren’t paying for a fleet to sit there when you don’t have many products to ship.
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Less liability – Those trucks and drivers are out on the road quite a bit which means that accidents can happen. You are insured in case of accidents even when you have a fleet, but your company is protected more against lawsuits for liability in case of an accident if you outsource.
Which is better?
As you can see, both methods have their advantages so it’s up to you to decide now that you know the ins and outs of each.