Choosing the Right Fleet for Your Business: Private vs. Dedicated Fleets Explained

There are many variables when it comes to deciding whether private or dedicated fleets are the right transportation option.  As e-commerce continues to grow, so does the need for quick turnaround between orders and deliveries.  At a fundamental level, there are manifold expenses and stipulations, to both private and dedicated fleets, with the most basic difference being how much (and what kind of) control a company wants to exercise over the operation.  

Private and dedicated fleets have their own specific sets of pros and cons.  To make an informed decision on which option is better suited to your specific needs, it’s useful to consider these questions: 

• What is the fleet’s principal function?

• How much money am I willing to spend (considering outsourcing/insourcing costs)?

• Would I need to hire a fleet manager?

• Are the fleet’s distribution requirements complex, in other words, would I need to account for complicated stops/routes?

• Does the freight require unique vehicle handling/specifications?

• How difficult is it to find and maintain drivers?

• How difficult is it to find backhauls/Do I have a significant amount of empty miles?

• Do I require the use of alternative fuels or warehouses?

• Is adapting to seasonal volumes a recurrent issue for drivers/vehicles?
  

Here are 5 other factors to take into consideration when reviewing private versus dedicated fleets:

• Control and Cost Transparency
  As mentioned before, private fleets ensure a much greater sense of control.  Companies that own their fleets have every bit of information they need at their fingertips.  They also can opt for their preferred drivers, vehicles, and where and when deliveries are made. Owning a fleet means that you will have greater control and visibility (yet also responsibility) when it comes to expenses.  When everything is under your management, it’s much easier to see potential money holes or unnecessary costs.  In an outsourced fleet, however, companies risk the lack of cost transparency that comes with depending on a third party. 

  It’s also worth noting that private fleets can incur multiple additional costs. There are capital costs to consider, as well as insurance, maintenance, fuel, licenses, certifications/permits, driver pay/training, and technology such as dash cams or ELDs. 
  

• (Transportation) Time
  It can take a lot of time and attention to tedious details to run a smooth operation.  It’s not only the driving time itself that needs to be accounted for, but the time it takes to arrange shipments, cover backhauling missions, implement logistics technology, keep up-to-date with industry regulations, and insurance, and efficiently plan driving routes.  Whether or not you own the fleet, to be competitive, teams must invest both time and money in transportation management software.  Effective route planning can not only save money but increase driver satisfaction and successful deliveries. 
  

• Storage
  Owning a fleet also means you must have enough allotted space for vehicles.  A lack of space could mean added damage and mileage to the fleet if drivers are asked to take company vehicles home and use them for personal ends. 
  

• Driver Retention
  Recruiting skillful, loyal drivers is crucial to the success of any fleet.  Nowadays, the increase in driver shortage makes it difficult to solve the driver turnaround dilemma.  The standardization of dedicated fleets means that there is always concrete human resources infrastructure to attract, manage, and retain drivers. Dedicated fleets can allocate more resources to make sure they stay competitive in this way.  

  On the other hand, private fleets can develop a much more interpersonal relationship with drivers, leading to a more humane and connected work environment.  Because private fleets are responsible for hiring and training their employees, they work closely and can both give and receive more direct feedback, which could result in a more profound sense of job satisfaction.
  

• Flexibility 
  Scheduling, capacity, and brand flexibility are also three key areas that become more viable within a private fleet.  Private fleets can create an aesthetic impact through an eye-catching slogan or image.  Advertising the company logo on the sides of trucks can help carriers spread even more awareness through brand recognition.  

  Private carriers also have the flexibility to adapt to future capacity needs as the company grows.  Shipping needs may become regional or national, which would necessitate more specialized vehicles, such as refrigerated dock trucks.  

  Lastly, scheduling flexibility is another key advantage of privatized fleets.  If there is a high variation in shipping times, or unexpected shipments that require urgent dispatch, it’s easier for private fleets to accomplish such tasks.  
  

Weighing the potential pros and cons, especially inherent to cost and control, can provide the best idea of whether dedicated or private fleets are the best option.  Information and education can take you far, but real industry experience will ultimately take you furthest.