Private Fleet Optimization: Turning Deadhead into Profit

 

 

Carrier Profile

A large, multi-national protein processing company with its own network of trucks and refrigerated trailers.

 

The Challenge


Though private fleets can lead to several benefits for a shipper—including total control over transportation costs, guaranteed capacity, and increased visibility—operating a highly efficient private fleet can be challenging. Equipment, maintenance, repairs, fuel, licensing, driver retention, and compliance can be extremely costly, and if too many of a company’s vehicles run empty miles at a given time, it can become seriously harmful to their bottom line.

The Carrier found itself in a situation where it had more trucks than it was able to use on a daily basis. While this provided added flexibility during peak periods, idle trucks during slower months meant wasted resources. In addition, drivers lacked reload opportunities after dropping products off at receivers, causing them to drive empty back to the original shipping point. Empty miles not only fail to generate revenue; they also result in unnecessary greenhouse gas emissions. To reduce supply chain costs and its environmental footprint, the Carrier needed help utilizing assets more efficiently and avoiding deadhead.

 

The Solution


LoadDelivered worked with the Carrier to match its consistent backhaul capacity with repetitive, high-volume freight. Because LoadDelivered primarily moves temperature-controlled food and beverage shipments, the Carrier’s equipment was well-suited for LoadDelivered’s portfolio of customers. Through extensive profiling and lane analyses, they identified loads that were ready for pick-up in the right locations, at the right times. This precise alignment of needs allowed the Carrier to effectively reposition its fleet for reload opportunities and eliminate non-productive miles from its operation.

Because the company was already using LoadDelivered as a carrier partner, building a successful partnership on both ends was of utmost importance. The arrangement gave LoadDelivered more visibility into the needs of the shipper’s end-to-end supply chain, which helped them service the account more effectively. Additionally, the private fleet received extra attention and lightning-fast payments to ensure ease of doing business with one another.

 

The Results


Upon joining LoadDelivered’s private fleet program, the Carrier immediately began turning deadhead into profit. The arrangement provided significant return on investment for the Carrier.

Repetitive, high-volume freight from LoadDelivered provided an additional revenue stream that the Carrier did not have before, and ultimately reduced the number of empty trucks it had on the highway at any given time, which benefits the environment.

In addition, LoadDelivered marketed the Carrier’s private fleet service to its other customers—an attractive solution due to the added consistency, reliability, and professionalism that comes from working with a private fleet.

Private fleet optimization makes an entire transportation network more efficient by eliminating empty miles, reducing carbon emissions, and providing cost savings for both shippers and carriers. Interested in learning about your private fleet’s synergies with LoadDelivered’s freight network? Click the link below to get started.

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