Any fleet outsourcing decision is not made lightly. The risk of turning over fleet management to a third party is a real concern. But businesses need to look at options where their fleet operations can benefit from utilizing outsourcing versus continuing their private fleet practices.
Five Reasons to Outsource Your Fleet
- Federal, state and local governmental regulations are increasing in complexity and in the sheer number of compliance stipulations, with hefty penalties.
- Safety issues and pressing need that procedures are followed properly is extremely important and very costly to manage.
- Driver management can be very challenging, particularly with fleets that are dispersed over large geographic territories and in areas where driver resources are limited.
- Maximizing loads and getting backhauls requires a great deal of planning and sophisticated systems in order to make the most out of the vehicles in use.
- Vehicle lifecycle management and accurately determining return on investment on lease-buy options involves a lot of analysis, and is a substantial cost burden for the business.
Understanding Your Fleet Outsourcing Concerns
Managers and executives have legitimate concerns about fleet outsourcing:
- How do I know if the prices quoted are competitive and reasonable?
- Will there be hidden fees or surprises?
- Will the business still meet our productivity and quality goals?
- How should I compare my existing fleet expenses to the quote?
- What should be the length of the agreement?
- Are there any industry standards to consider for fleet outsourcing?
- How difficult is it to transition from private fleet to dedicated contract carriage?
Steps to Determine the Right Choice for Your Fleet Operation
TMG has over 35 years of experience in working with carriers to provide fleet outsourcing services. TMG can work with your business through every step to weigh the pros and cons of outsourcing and make sure risks are mitigated. The experts at TMG also understand the entire bid process and the tactics that some carriers may use in order to win business.
- TMG can start by reviewing your current fleet expenses to determine your true operating costs.
- Then, TMG can construct an unbiased and comparative bid process so that it is easy to compare your current expenses to third party carrier providers.
- During the agreement discussions, TMG will make sure the terms and conditions will meet or exceed your business expectations.
- Finally, TMG will help to coordinate the transition process so that there are minimal issues with the change.
TMG provides an insider’s perspective on the fleet outsourcing process, and will work with your business team to make sure your company realizes tangible benefits from the experience. Your next step is to take this fleet management survey and receive more information on best practices in fleet operations from TMG.