6 reasons to consider a dedicated contract carrier

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There are so many changes occurring in the economy and on the regulatory front that it can be difficult for private fleets to keep up with the myriad changes happening in the trucking industry.

Despite these changes, private fleets need to continue to provide reliable and efficient transportation of the goods they manufacture. Now is a good time for them to look at outsourcing their transportation function to a logistics professional.

Partnering with a dedicated contract carrier (DDC) is one way to relieve a company of its transportation burden.  A DDC provides private fleets with a comprehensive solution for their transportation needs; one that is tailored specifically to their unique challenges. Dedicated contract carriage agreements provide companies with their own dedicated fleet and drivers and offer several key benefits. 

Reliability and consistency

A DDC provides predictable delivery schedules allowing companies to avoid fluctuating vehicle availability.

Cost efficiency

At first glance DDC may seem more expensive, but in the long-term a DDC optimizes routing, reduces handling costs and delays, and can lower fuel and operational expenses.

Flexibility and customization

A DDC provides solutions tailored to the unique needs of each business regardless of what is being shipped, including perishable goods, oversized products and time-sensitive items.

Improved customer satisfaction

A company’s customers receive faster, more reliable deliveries with predictable delivery windows under a DDC model. This can help enhance a company’s reputation.

Focus on core operations

Outsourcing to a DDC allows a company to focus on its core operations and grow its core business.

Predictable budgeting

By outsourcing fleet management and logistics to a third-party provider, companies can benefit from predictable, consistent pricing, helping them maintain better control over their transportation budgets.

A DDC works closely with each company to plan routes and determine delivery windows. The carrier designs routes and schedules that are optimized for fuel efficiency, delivery time and cost.

When you switch to a DDC, you’ll receive regular updates on the status of your shipments so you can track them in real-time and make any needed adjustments.

Given economic and market uncertainty, now might be a good time to see if switching to a dedicated contract carrier makes sense for your operation.

Mike Stanton is Lily Transportation’s chief operating officer and senior vice president of operations and compliance. He has more than 35 years of transportation experience with 30-plus years in the less-than-truckload sector. He is a graduate of Plymouth State University with a BS in management administration.        

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