Subscribe to our free, weekly email newsletter!

Justify your private fleet

Tech-savvy private fleet operators are able to justify the cost of their complex operations through high service levels, smart maintenance programs, and revenue generating backhaul opportunities that can make even the toughest CFO smile.

Continental Floral’s private fleet allows the wholesale florist to change a route if a customer misses a truck and gives it the flexibility to add capacity at holiday times.

By John D. Schulz, Contributing Editor
November 10, 2010

Private fleets have always been in the crosshairs of corporate bean counters. After all, if you’re in the business of producing widgets, why bother with the additional cost of operating a private fleet of trucks?

Why bother? Well, at more than $300 billion, private fleets make up the largest component of the $680 billion trucking industry. As Coca-Cola, Sysco, Wal-Mart Stores, Pepsi Bottling Group, U.S. Foodservice, Haliburton, Tyson Food, Walgreen’s, and other corporations can attest, their private fleets aren’t considered mere cost centers. Instead, these savvy logistics operations consider their fleets a strategic operating advantage that can be used to win market share and satisfy finicky customers— and even enhance the role of the private fleet manager and the logistics department within the corporation.

Not that operating a private fleet is easy. Transportation, particularly trucking, has never been more complex. There are regulations galore, from the federal, state, and even local level covering safety, environmental, technical, operational, and other aspects of the industry. Communities and states increasingly look at trucks as easy tax targets; and in the meantime, engines are constantly being designed to run cleaner, but only with increasingly complex maintenance issues.

Click below for related articles

Armstrong brings transportation back in house

Shippers bracing for future rate hikes

ACT says September Class 8 orders up 37 percent

Be sure to attend our Webcast:

2010 Warehouse/DC Benchmark Study
Tuesday, November 30, 2010 @ 2:00 p.m. ET

Join Group Editorial Director Michael Levans and the research team of Derek Sorensen and Norm Saenz from TranSystems as they put context behind this annual survey designed to give the market the most up-to-date snapshot of current activities and trends in warehouse and DC management.

2010 Warehouse/DC Benchmark Study

sponsored by:


About the Author

John D. Schulz
Contributing Editor

John D. Schulz has been a transportation journalist for more than 20 years, specializing in the trucking industry. He is known to own the fattest Rolodex in the business, and is on a first-name basis with scores of top-level trucking executives who are able to give shippers their latest insights on the industry on a regular basis. This wise Washington owl has performed and produced at some of the highest levels of journalism in his 40-year career, mostly as a Washington newsman.

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Companies used to compete on price and service. The future of supply chain, according to Steve Melnyk, is culture. In fact, innovators like Apple, Google, and Unilever are already leading because of their cultures. Your company can too.

As evidenced by the widening gap in the United States trade deficit, which has seen imports far outpacing exports for years on end, the September edition of the “Global Trade Pulse” from global maritime and trade consultancy Hackett Associates paints a similar picture for trade activity in North America, with some overlapping themes apparent in the report’s European data, too.

Kurt Nagle, president and CEO of the American Association of Port Authorities recently voiced his endorsement of this trade legislation

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Purolator white paper highlights common Canadian shipping mistakes. From failing to appreciate the complexity of the customs clearance process to not realizing that Canada recognizes both French and English as its official languages, U.S. businesses frequently misjudge the complexity of shipping to the Canadian market. This often results in mistakes - mistakes that can come with hefty penalties and border clearance delays, and that can result in lingering negative perceptions among Canadian consumers.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA