Why Public Warehousing Distribution Makes Better Business Sense Than Your Own Fleet

There was a time when many companies would own a private fleet for distribution. But those companies quickly discovered an investment in a private fleet was costly and significant dollars could be saved by outsourcing their carrier operations to public warehousing distribution. No doubt you’ve heard the expression, what goes around, comes around, which is now applying to private fleets. The concept is becoming a hot trend in 2015, but whether it sticks around in upcoming years remains to be seen, especially when companies look at it from a cost standpoint.

Before you decide to switch your outsourced distribution to a private fleet, consider these seven factors.

Initial Expense

Establishing your own fleet involves significant capital to buy vehicles, hire and train drivers, purchase the necessary equipment for loading the trucks, and lease an area to park them. There’s also the cost of a logistics management system, scheduling and routing tools, claims handling, fuel costs, and fleet maintenance.

With a third-party distribution service, you have no such costs.

Rules and Regulations

If your company already owns its own fleet for distribution, you’re probably all too familiar with shipping regulations. There are a lot of them, so if you go the private fleet route, you’ll need a staff dedicated to complying with federal and state regulations for truck drivers and trucks.

On the other hand, public warehouses specialize in distribution and work every day in this regulatory environment. When you hire a third-party logistics (3PL) provider, like Brendamour Warehousing, Distribution & Services, your company no longer has to worry about shipping rules and regulations or their compliance. The task becomes our responsibility and we have the system in place to ensure our distribution network is in full compliance at all times.

Vehicle Inspection

Businesses with private fleets must allocate significant costs to regular inspections of its vehicles. With outsourced distribution, these costs, as well as fleet maintenance costs, are eliminated. In addition, companies that specialize in warehousing and distribution have measures in place to ensure their trucks and drivers are operating safely.

Weigh Station Regulations

Numerous weigh stations are situated along U.S. highways, which means your drivers have to stop and have their trucks weighed to ensure they are within federal weight limits. In addition, drivers may need to submit hours of service logs.

As a business with a private fleet, you need to stay on top of these regulations, and provide the proper training to drivers. Did you know that drivers not following weigh station requirements could have their truck taken off the road? Or that your company could be fined?

With a public warehouse doing your distribution, this is all managed for you. Furthermore, drivers working for a public warehouse 3PL are properly certified to drive carrier trucks and attend continuous training regularly. They know what to expect at a weigh station stop, ensuring everything goes quickly and smoothly.

In addition, public warehouses with 3PL services are experts in loading trucks so the freight meets proper weight requirements, submitting the necessary paperwork for permits that allow certain overweight trucks on highways, making sure all driver and truck inspection documents are in order, and having the proper documentation to verify the truck’s contents are stable.

Global Reach

Depending on your company’s location, it might not be centrally located to easily distribute to the entire United States. On the other hand, when you use third-party logistics, you can choose the location of your public warehouse.

For example, Brendamour Warehousing is located in Ohio in a favorable Midwest region that is centrally located to every corner of the United States. In addition, our four facilities are all within easy access to major highways, airports, railroads, and shipping docks. This gives your business a centralized location with a global reach.

An accessible warehouse location also means your goods move in and out of our warehouses faster, decreasing the delivery time to your end customers.

Improved Service

Companies with their own private fleets say they realize scheduling flexibility, capacity control, and better customer service. However, distribution through a 3PL provides these same benefits and much more.

Because distribution is a core service of a third-party logistics company like Brendamour, we have the sophisticated technology, expertise, and networking partnerships to plan better and more cost-effective transportation routes so your customers get their orders faster.

In addition, outsourced carrier operations can more quickly scale up to meet your business growth and guarantee capacity based on your company’s needs.

We also offer as much flexibility as your business needs. For instance, you may choose to blend resources, combining a private fleet with a third-party fleet.

The Brendamour Difference

At Brendamour Warehousing, Distribution & Services, we consider your customers our customers and have the same interest in providing top-notch customer service as you do.

As a full-service 3PL, we can handle all your warehousing, distribution, and logistics needs. With everything done under one roof, your logistics are streamlined and operate in the most efficient and cost-effective way.

Before following the trend of a private fleet, why not get in touch with Brendamour Warehousing first? We welcome the opportunity to learn about your business and help you decide the best route to take for the benefit of your business and the customers it serves.