It’s a question a lot of companies have been considering during these difficult economic times and we wanted to answer it. Today’s business climate is challenging, to say the least, and companies are looking for solutions to increase profitable revenue, reduce costs, and improve service to remain competitive. Outsourcing or blending your Private Fleet with a Dedicated Contract Carrier is a viable solution for some and you may want to consider it. Changing from a distribution system that relies on Truckload (TL) or Less than Truckload (LTL) carriers to an outsourced Private Fleet (Dedicated Contract Carrier) can be daunting, but it can also reduce cost per unit delivered and improve service to your customer. Is it right for your company? Here are answers to some FAQ that may help you decide:
WHO uses Dedicated Contract Carriage (DCC)?
…….. assumes liability of the fleet and drivers?
…….. 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?
……… is included in my DCC operation?
……… if 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?
……….. 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?
…….. will my customers will be as satisfied as they are today?
…….. long does it take to implement a dedicated fleet?
…….. 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.