6 Reasons a Company Needs Dedicated Contract Carriage
An aging fleet, underutilized equipment, or new dynamic routing requirements are all reasons why executives should consider the dedicated contract carriage option. Find out more.
August 21, 2014, Downers Grove, IL – There are six unmistakable signs that it may be time for a company to seriously consider moving from private carriage to a dedicated contract carriage (DCC) program, according to Joe Gallick, NationaLease Vice President of Dedicated Services. In his blog, he explains how these six signs should trigger a discussion to review a company’s current transportation program.
Older fleets in need of replacement. The economic downturn disrupted the normal fleet replacement cycle, leading to an average fleet age of nearly seven years. But when the financial benefits of lower depreciation and interest are eaten up by increased repairs and unscheduled maintenance costs, moving to an off-balance sheet program, i.e. DCC, may be the best strategic decision.
Underutilized equipment. Vehicles “against the fence” during normal business hours are typically a sign of excess fleet, unless the vehicles are used for nighttime deliveries. In addition, it could be the vehicles themselves, where insufficient freight or inadequate cube utilization is often the culprit.
Time-sensitive delivery requirements not being met. The costs of sub-performance can be more than just an expedited shipment or discount on an invoice. For many manufacturers’ supply chains, just-in-time shipments are critical in keeping an assembly line running, and delays can cost thousands of dollars per minute to stall.
To learn more about what to look out for and to read the other three signs, the reader can view Gallick’s blog in full at http://blog.nationalease.com/6-reasons-companies-turn-to-dedicated-contract-carriage/.
Founded in 1944, NationaLease is one of the largest full service truck leasing organizations in North America, with over 700 service locations throughout the U.S. and Canada and a combined customer fleet of over 135,000 tractors, trucks, and trailers. The company provides comprehensive fleet management services for private fleets and transportation service providers. More information can be found at nationalease.com.
Joe Gallick, Vice President of Dedicated Services, NationaLease