Companies depend on trucks and drivers to keep their businesses running efficiently. However, challenges such as safety issues, driver shortages, inflation, supply chain problems and rising costs of equipment, maintenance and fuel are causing organizations – including many in the Fortune 500 – to reevaluate their transportation solutions.
To gain more control and flexibility over their transportation services and costs, a growing number of industry leaders are choosing to operate a private fleet instead of outsourcing their logistics to for-hire carriers.
According to the National Private Truck Council’s (NPTC) 2022 Benchmarking Survey, private fleet drivers are the safest in the industry, reporting the lowest United States Department of Transportation Recordable Accident rate – 0.4 accidents per million miles – on record. Data from the Federal Motor Carrier Safety Administration shows that private fleet crash rates are nearly three times lower than the trucking industry average.
Additionally, the 15-year average driver turnover rate for private fleets is only about 14 percent compared to 90 percent for the overall trucking industry, positively impacting safety, service and overall operations.
Private fleets offer companies complete control over how, when and where their trucks and drivers deliver their goods, ensuring timely deliveries, improved customer service, and more efficient overall operations.
According to the NPTC Benchmarking Survey, 46 percent of companies said better customer service is the top reason they run their own private fleet transportation operation, while 13 percent cited distribution control.
Twenty-two percent of companies in the NPTC Benchmarking Survey said they chose a private fleet for cost control. Managing their own supply chains gives them better oversight of their expenses, especially amid fluctuating prices in the spot rate market caused by recent inflation and supply chain issues. Private fleets allow organizations to make real-time decisions as shipping costs rise and fall.
Additionally, service issues with outside carriers, such as a lack of drivers and capacity constraints, can drive up prices. They can also delay the on-time delivery of raw materials for manufacturing or products to stores – increasing a company’s overall cost of business operations.
Various circumstances, including economic slowdowns and catastrophes like the COVID-19 pandemic, require companies to pivot. Unlike restrictions dedicated carriers often impose, private fleets provide companies with the flexibility to adjust freight movements and distribution operations rapidly.
Most companies with private fleets don’t specialize in transportation and logistics, so they turn to experienced professionals like CPC Logistics.
For 50 years, industry leaders in multiple business lines and product categories across North America have trusted CPC to create, transition, expand, and manage their private fleets. CPC handles the recruiting, screening, hiring, Department of Transportation compliance, general employment administration, and labor relations to maintain a qualified staff of safe, responsible, skilled truck drivers and other transportation operations and safety staff for its customers’ private fleets. CPC also assists its customers’ fleets with asset management, dispatching, capacity forecasting, route optimization, liaison with equipment lessors and more.
As the industry approaches a record-high truck driver shortage, CPC consistently recruits and retains the highest quality drivers for its customers’ private fleets. Many stay with CPC for decades because their jobs offer:
CPC’s ranks include 11 drivers inducted into NPTC’s Driver Hall of Fame, 104 NPTC National Driver All-Stars, and more than 155 drivers who have logged at least 1 million miles without a preventable accident.
In 2019, a well-known American-based multinational consumer goods company with more than a century of longevity chose CPC to help launch a private fleet.
Since then, the private fleet has helped the company achieve stronger synchronization, improved speed going to market, the ability to meet the dynamic needs of consumers, and provided a competitive advantage with drivers who are valued assets.
Recognizing its worth, the company has grown its private fleet from 28 to almost 600 drivers in partnership with CPC with the goal of expanding to 750 drivers by the end of 2023.
CPC is grateful for partnerships with businesses of every size interested in exploring the advantages of private fleets. CPC is ready to deliver the best service at the best value. Connect with CPC National Sales Director Adam Putzer today by calling 262-389-7971 or emailing [email protected].