Note: Today’s post is part of our “Editor’s Pick” series where we highlight recent posts published by our sponsors that provide practical knowledge and advice on timely and important supply chain and logistics topics. This post by Ben Cubitt from Transplace’s blog provides some tips to help companies optimize dedicated capacity.
Over the past five years, shippers—especially consumer packaged goods (CPG) companies—have added dedicated fleets to their transportation networks to gain greater control over some volume of their freight spend. Dedicated fleets help shippers minimize reliance on the spot market with associated higher costs, as well as improve performance and service.
When dealing with weather emergencies, healthcare and economic crises that disrupt traffic and supply chains, flexibility in fleet capacity is a must. Dedicated fleets help avoid ongoing disruptions in over-the-road (OTR), rail and intermodal markets. Shippers with flexible fleet capacity have greater control to better manage their transportation planning and budgets.
Shippers have multiple dedicated fleet options with various designs based on their network flows, profiles and logistics needs. Whether shippers have a local fleet, regional network fleet, surge fleet or multi-shipper collaborative fleet, it is critical for fleets to be actively managed from design to execution.