Is the Trailers as a Service (TaaS) Model Right For Your Business?

Since its launch in July 2022, Wabash's Trailers as a Service (TaaS) offering has provided businesses with a low-stress, cost-efficient way of moving goods. In this edition of Ask an Expert, we spoke with Cory O’Brien, Vice President, Marketplace Operations at Wabash to discuss the benefits of Trailer as a Service.  

Can you explain the concept of “Trailers as a Service” and how it differs from traditional ownership or leasing models?

Trailers as a Service (TaaS) is an innovative approach in the transportation and logistics industry to enable access to trailer capacity. It's a flexible, subscription-based model that allows 3PLs, freight brokers, and fleets to access trailers as needed. This helps eliminate the upfront costs of ownership and provides greater flexibility in managing their logistics operations.

Unlike traditional leasing models, TaaS is instantly scalable to meet fluctuating capacity needs. With guaranteed uptime, managed care service, smart trailer telematics, and all-inclusive pricing, TaaS is a more efficient and cost-effective solution for asset-light companies. The program is backed by Wabash’s national dealer network, which provides the service centers and trailer capacity to deliver guaranteed uptime.

As a legacy trailer OEM, we have a bit of a unique perspective, and our new TaaS model is designed to enhance efficiency in logistics operations and provide greater flexibility to companies that want to build a trailer pool without the overhead costs of maintaining one. With a slew of challenges plaguing the industry, TaaS is a solution that not only addresses industry demand but also paves the way to meet growing industry trends, such as drop-and-hook loads, that can improve logistics network efficiencies.

What are the primary benefits of the TaaS model for businesses? Are there specific features or services included that distinguish Wabash from your competitors?

With a TaaS subscription, you get more than equipment – you also get a managed care team dedicated to the uptime and health of that equipment, as well as access to Wabash’s national dealer network.

In addition to maintenance services and trailer health monitoring, TaaS provides customers with flexible terms and the added benefit of at-fault physical damage case support. This support is crucial in managing unexpected incidents and takes the operational burden off the customer. Another feature is Wabash's 3-year trailer build slot commitment, guaranteeing businesses access to new and certified used trailers.

TaaS also includes platform integrations for capacity, telematics, and service event management which facilitates data-driven decision-making and improves operational efficiency. Consolidated monthly billing simplifies financial management, and the inclusion of insurance allows businesses to predict and manage costs more effectively. 

Who is the ideal customer for your TaaS solution? How does it cater to the needs of different industries or sizes of businesses?

TaaS is designed to support a wide variety of organizations aiming to broaden their business scope and market presence, including digital freight brokers, 3PLs, and large and small private fleets alike. By understanding the unique needs of various industries and business sizes, TaaS can provide tailored solutions that meet specific customer requirements. 

For example, digital brokers and 3PLs can significantly benefit from TaaS as it offers a managed care business model and presents an excellent opportunity for brokers to expand their business with large shippers without adding assets or people. Similarly, private fleets can leverage the flexibility and comprehensive, cost-effective services of TaaS. By bringing together a connected ecosystem, TaaS can address specific customer challenges, deliver faster solutions, and boost uptime.  

How can TaaS impact a company's bottom line? Could you provide examples of how TaaS has led to cost savings or efficiency improvements for your clients?

TaaS impacts a company's bottom line by boosting operational efficiency and cutting costs. As demand for drop trailers and power-only services surge in the transportation industry, TaaS equips organizations with the agility needed to meet demand. 

By integrating advanced telematics and real-time data into trailers, TaaS optimizes uptime and enhances fleet monitoring. These systems allow for real-time monitoring of trailer health, location tracking, cargo monitoring, trailer performance, data collection, and more. Such advancements are transforming the trailer industry, driving efficiency and cost-effectiveness.

For example, Wabash customers have identified location tracking and real-time monitoring of trailer health as critical aspects of their operations. Unscheduled service events are the uptime killer, so monitoring trailer health in real-time, leveraging a smart trailer technology package, allows for quick response and repair times when those dreaded events happen. Early detection of issues also enables timely repairs, reducing downtime and costs, minimizing breakdowns, and extending the lifespan of trailers.

With TaaS, customers not only get smart trailers with advanced telematics, they get a dedicated fleet manager who monitors and analyzes those analytics daily to increase uptime. On-time delivery is a key performance indicator for carriers, and by knowing the exact location of the trailer, companies can proactively communicate with their customers in real-time, which can significantly improve their position in a routing guide.

Our managed care team also provides physical damage reimbursement support and stolen asset management support. To date, we have a 100% recovery rate for trailer damages for our customers thanks to advanced telematics that feed directly to Wabash and the subscriber.

To deliver this capacity of uptime, access to an expansive dealer network with deep trailer expertise is crucial to boosting the bottom line. As one of Wabash’s key differentiators, the dealer network ensures that wherever our customers are, they have access to the support and service they need to reduce downtime and keep their fleet on the road.

Looking ahead, how do you see the TaaS model evolving within the transportation and logistics industry? Where do you see Wabash in 10 years?

As we look toward the future of transportation and logistics, the transformative potential of TaaS can reduce the burdens of downtime and logistics network inefficiencies. TaaS opens the door for businesses that have, until recently, been locked out of drop-and-hook loads due to a lack of resources. With Wabash’s TaaS program, you manage the freight and we manage the trailer. 

We think we’ll only see a rise in power-only businesses and drop-and-hook activity as programs like TaaS continue to offer more flexibility to capacity in the market. Through innovative solutions like TaaS, the transportation and logistics industry can alleviate common challenges and create an ecosystem marked by efficiency, security, and unparalleled reliability.

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