5 Points To Ponder When Considering Private Fleet Outsourcing
As a manager, you are responsible for the business running smoothly, and nothing messes it up more than late customer deliveries. If you are considering private fleet outsourcing, here are 5 points to ponder to ensure you make the right decision for your company.
#1: Reduce operating risk. The risk of employing your own private fleet is great, in terms of following the massive regulations currently in place from state and federal governments. Moving away from dealing with this by utilizing a third party is often beneficial and decreases time consuming compliance issues.
#2: Mitigate driver issues. Employing drivers adds a whole new element to your workforce. The average negligent hiring lawsuit payout is $600,000! Not only do you need to conduct drug screening and motor vehicle registry searches, you must train them, pay them, and give them a benefits package. Outsourcing eliminates these expenditures and responsibilities.
#3: Get back to basics. A great amount of time and attention must be dedicated to managing a private fleet. By outsourcing, management can return their focus onto the actual business initiatives and company mission.
#4: Reduce operating expenses. Utilizing a third party vendor for product transportation saves you from investing company funds into depreciating assets such as trucks. This frees up cashflow for important enterprises such as innovation and product development.
#5: Increase customer service standards. When you decide to outsource your fleet, you are turning over your delivery to professionals who are experienced in logistical matters. By choosing a professional fleet management company, your customers will benefit by a faster delivery and efficient operation.
Choosing to outsource your fleet is a big decision, however, it can reap big rewards. Deciding on this path will decrease company liability and increase cash flow and management's time spent on other, income increasing projects.