Most firms believe they must maintain an in-house fleet to conduct their business operations successfully. However, outsourcing road haulage brings a host of considerable benefits to teams, managers, and brands as a whole. If you are asking yourself the questions: “Should I keep haulage services in-house?” or “What should I look for in a road haulage provider?” this post should help. We investigate the benefits of both sides to give you the best outcome for Road Haulage verses maintaining an in-house fleet.
The main benefit of outsourcing road haulage is that it can help you save money on various aspects of operating a fleet. For instance, you can avoid the high capital expenditures associated with purchasing and leasing vehicles, and ongoing maintenance costs, fuel costs, insurance premiums, and taxes.
It also reduces staffing costs because you don’t need to hire drivers, dispatchers, and administrative personnel. The outsourcing company deals with that for you, taking annoying fixed costs (which you can’t usually reduce) and turning them into variable costs you can.
Another benefit of outsourcing road haulage v maintaining an in-house fleet is that it lets you focus on your core business activities and leave the logistics to the experts. You don’t have to spend precious time and resources managing your fleet, freeing up energy for marketing your brand and satisfying your customers’ needs.
Outsourcing road haulage may also increase your business’s flexibility and ability to scale. Most providers let you choose from various vehicles and equipment to complement your cargo type, shape, and volume.
In addition, road haulage outsourcing lets you access more geographical coverage and a network of partners that can help you reach new markets and customers. You can often expand further and faster than if you kept operations in-house.
Another advantage of outsourcing road haulage is that it lets you access specialised equipment that might be financially challenging or impractical for you to maintain on your own. (Keeping large lorries onsite takes up space and increases costs unnecessarily).
Moreover, partners help you access the latest technology, such as temperature-controlled trailers, GPS tracking devices, electronic logging devices (ELDs), and telematics systems that can enhance shipment safety, security, and quality.
You can also benefit from reduced regulatory exposure when you outsource. As a fleet manager, you can avoid vehicle inspections and checking driver qualifications, outsourcing the hassle to a third party.
Another advantage of outsourced road haulage is the operators’ increased experience. They often have tremendous expertise in load consolidation and route optimisation technology, helping you lower costs and fit more products into a single shipment.
The ability to leverage economies of scale is another critical benefit that makes outsourcing road haulage superior to maintaining an in-house fleet. You can take advantage of the provider’s low cost through their ability to spread the fixed costs of their operations across more shipments and clients.
Lastly, outsourcing road haulage services can improve supply chain visibility for customers and clients. Providers regularly use advanced technology and systems to track the movement of goods, keeping them safe and preventing fraud. Outsourcing can also facilitate better communication and collaboration between different stakeholders in the logistics chain, such as suppliers, carriers, distributors and retailers. These services enable them to coordinate activities more efficiently and avoid mishaps.
So, is it better to outsource road haulage? We think so. It’s cheaper and vastly more efficient.