Distribution Company Reduces Transportation Expenditures

A company explores the option of outsourcing their existing fleet by using an asset based dedicated transportation solutions provider to manage their intra-company shipping needs.

WHAT WAS THE PROBLEM?

A middle market heating, air conditioning, and plumbing distributor replenishes their branches daily using a private fleet of 7 tractors and 22 trailers.

Their fleet equipment is aging and they are faced with a decision to re-capitalize their fleet or to outsource their fleet to a dedicated transportation services partner.

The dedicated outsourcing option has been met with internal resistance due to a concern that the company will lose control of its processes and face erosion of its competitive advantage in the area of customer service. The client’s goal is to avoid a significant capital expenditure, reduce its operating costs while continuing to provide a high level of service to its customers and branch locations.