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Is Dedicated Contract Carriage Right For You

Is Dedicated Contract Carriage Right For You

Amid a global pandemic and really, at any time, what’s the best logistics option for your company?

Having deeply impacted the supply chain industry, Covid-19 has likely put pressure on your business to do more with less. This pressure is only intensified when considering that nearly 90,000truck drivers lost their jobs in April alone. Thankfully, the economy is now on its way to recovery, leaving businesses in positions to choose the optimal way to ship goods for maximum long-term growth. 

The transportation industry has several business solutions to consider. One that you may have heard of is Dedicated Contract Carriage (DCC). But what is a Dedicated Contract Carriage, what are the benefits of it, and how do you determine if it’s right for your business?

Ground transportation is complex. Deciding on the right solution will ensure you not only reduce exposure and increase transportation efficiencies, but that you also feel confident as you help shepherd your company into a new, post-Covid world.

What is Dedicated Contract Carriage?

Dedicated Contract Carriage is a customized transportation system that acts as an extension of your business. Think of it as a way to leverage all the benefits of owning your own private fleet with none of the headaches.

Benefits of a Dedicated Contract Carriage

Companies choose to move forward with the DCC solution for a myriad of reasons, such as:

  • Controls costs
  • Provides a dedicated fleet with company branding
  • Improves customer service
  • Guarantees capacity
  • Redirects capital investment from purchasing fleet to growth of core business
  • Transfers primary liability of operating trucks to carrier
  • Removes fleet management duties and truck maintenance headaches
  • Removes HR responsibility for drivers and operators
  • Transfers the burden of regulatory compliance

Depending on how companies are currently shipping their products, some benefits may apply more than others.

 

How Do You Determine if Dedicated Contract Carriage Is Right For You?”

There are three main ways that you may be shipping your goods:

  1. Private fleet – you current own a private fleet. Perhaps you’re considering whether to renew your leases and contracts.
  2. Dedicated trucking service – you already have a contract with a DCC provider.
  3. Carriers – you hire carriers to ship your products.

Depending on how you’re shipping now, you can start to answer the below questions to see if it’s time to rethink your model or your service provider.

If you own a private fleet:

If you are currently running a private fleet, there are many advantages to outsourcing the fleet management duties without losing the advantages of owning a private fleet. If you can answer “yes” to any of the below questions, a DCC model may be right for you.

  • Are your insurance premiums skyrocketing?
  • Is your administration burdened with managing compliance and HR activities?
  • Could your capital resources be deployed from purchasing transportation equipment (a depreciating asset) to building equity in your core business?

 

If you are already using dedicated trucking services:

If you are currently using dedicated trucking services. Perhaps you like the DCC solution but may be considering whether your partner is right for you. If you answer “yes” to any of the below questions, it may be time to have another pair of eyes take a look at your business.

  • Are you dissatisfied with the responsiveness of your current provider?
  • Have your transportation needs changed?
  • Is your current contract coming up for renewal?

 

If you hire carriers to ship your products:

Perhaps you don’t fit into either of the above two categories. Perhaps you are a manufacturer and just don’t want the headaches of a fleet; however, you’re curious if it might work for certain aspects of your supply chain. If you can answer “yes” to any of the below questions, it may be time to think about DCC.

  • Are you experiencing issues or delays moving shipments by common carrier?
  • Do you have regular shipments within a 150-mile radius?
  • Is there regularity of shipments on a weekly basis?
  • Would you like to provide your most important customers with exceptional customer service?

 

TQ Logistics: A Partner You Can Trust

Because your business is unique, so should your transportation solution.  Choosing the right solution will help you navigate the complexities of meeting your ground transportation needs.  

TQ Logistics has had steady year-over-year growth over the past two decades by providing the highest quality of service in the DCC industry. By considering the current landscape and offering personal service that you cannot get from larger companies, TQ Logistics works with businesses to ensure that the dedicated contract carriage solutions we provide control costs, increase efficiencies, improve customer service, and enhance business performance.