Outsourcing your Private Fleet or blending it with a Dedicated Contract Carrier is something you may want to take a look at as the trucking industry faces a record driver shortage and the FMCSA continues to expect perfection when it comes to the safety records of America’s truck drivers. Recruiting, training, and overseeing drivers to be sure they are in compliance with the federal rules, regulations and reporting is becoming a part-time job that a lot of companies simply aren’t willing to take on any more.
Contracting with a Dedicated Carrier is a transportation solution some companies have discovered saves them time, money, and a lot of wasted energy that can now be channeled into running their business successfully. Is a Dedicated Contract Carrier a good idea for your company? Only you can decide that but here are answers to some frequently asked questions that may help you decide:
WHO uses Dedicated Contract Carriage (DCC)?
WHO assumes liability of the fleet and drivers?
WHO decides if or when something needs to change in the operation?
• DCC is used in most industries from auto parts to grocery, from bakery to building materials — you may be surprised at how many companies outsource a portion of their fleet or their entire private fleet.
• Liability is assumed by the DCC – they’re responsible for the drivers and their actions, including workers comp., liability & physical damages should there ever be an incident.
• An on-site Operations Manager works as part of your team and continuously adjusts fleet operations as business fluctuates.
WHAT is a DCC?
WHAT is included in my DCC operation?
WHATif I expand or change my operations?
• Different people have different definitions of what Dedicated Contract Carriage (DCC), is or is not. Here’s how we define it – A Dedicated Contract Carrier is a carrier who is dedicated to your company’s transportation needs through a mutually agreed upon contract. DCC is like having a Private Fleet without the burden of owning the trucks, maintaining equipment, hiring & retaining drivers, or dealing with safety, compliance and liability issues.
• Our DCCs include System Design, On-Site Management, Dedicated Equipment and Drivers, software integrated to your business, and customized reporting systems.
• If you change your operations we adjust to your needs. We operate using the Continuous Improvement Process which includes ongoing re-engineering and additional drivers, equipment and management when needed.
WHERE will my Fleet be located?
WHERE will my Operations Manager & Drivers be located?
• Your fleet will be domiciled at a location chosen by you.
• The Operations Manager(s) will be at your site working from your DC every day as part of your team.
• Drivers report to duty to the location to which they are dedicated. They are scheduled by and report to the Operations Manager.
WHEN is it a good time to start up a DCC?
• Whenever you are ready. Dedicated systems do require analysis and planning prior to implementation. A review of your current operations will help determine if a Dedicated Logistics System is a good fit and will be beneficial to your company.
• If it sounds like something you’d like to consider after the initial review meeting, you’ll need to submit your distribution data (typically 2 weeks worth), for analysis. This data is reviewed and revised over a series of meetings until the system design is complete. Once the final design is ageed upon, it is presented together with a cost benefit and efficiency comparison against your current operations.
WHY would I want to change my existing logistics system?
• You may reduce your annual transportation costs by ten percent and more often by over fifteen percent.
• Liability, capital investment, regulatory compliance management (CSA 2010, revised HOS rules… ), all are now the DCC’s responsibility, so it’s no longer your headache.
• Additional revenues can often be created via Backhauls.
HOW many trucks & drivers are in a DCC?
HOW will my customers will be as satisfied as they are today?
HOW long does it take to implement a dedicated fleet?
HOW long does a contract run?
• The size of a fleet depends solely on your distribution needs. It depends upon your operation and what will be most cost effective and efficient. Those details are worked out during the analysis phase.
• DCCs typically set metrics, Key Performance Indicators (KPI), to measure the sucesss (you set the measurable criteria) of the system. We certainly insist on them! Our KPIs are incorporated into a weekly billing system, reviewed weekly, presented at Quarterly Reviews, and adjusted throughout the contract as necessary.
• Since Dedicated systems are customized, the amount of time to analyze existing operations, design a more efficient system, and seamlessly implement the new system can take up to 90 days.
• Contract term is mutually agreed upon and depends upon the scope of the operation.
Lily Transportation Corp. is a Dedicated Contract Carrier in North America that is headquartered in Needham, MA. The company, with more than 500 employees throughout the US and Canada, has received numerous awards for its superior service including Top 25 Dedicated Contract Carrier, Top 100 Food Logistics Provider and Top 100 Motor Carrier. Lily has been a SmartWay Partner since 2007, recognized by the EPA as a carrier committed to continuously improving fuel efficiency and reducing air pollution.