Top 3 obstacles manufacturers face when running private fleets

Manufacturing companies face an uphill battle when operating private fleets. Not only must these companies focus on their core business — producing foods, clothing, household products, and more – they must also run a compliant and cost-effective fleet. Let’s take a closer look at the top three challenges facing companies operating private fleets and considerations to overcome them.

1. Increased costs

Companies operating private fleets can meet customer demands because they have control over their drivers, vehicles, and shipments. But this control comes at a cost, and it’s no surprise that these costs have been increasing. Labor, insurance premiums, fuel, and vehicle maintenance are just a handful of areas in which costs have been rising. Purchasing new equipment can also be a major expense.

2. Complex compliance

Compliance in transportation often starts with the Federal Motor Carrier Safety Administration (FMCSA) regulations. These regulations prescribe driver qualification requirements, drug and alcohol testing, and hours-of-service requirements, including electronic logging devices (ELDs), just to name a few major compliance areas.

Unfortunately, compliance doesn’t end with the FMCSA regulations. There are other regulatory requirements across different agencies at the federal and state level, including those covering fuel taxes and vehicle registration.

3. Distraction from core business

Increased costs and complex compliance issues can distract manufacturing companies from their primary business. Manufacturing companies need to be focused on providing quality products and getting those products to market.

Future fleet considerations

Manufacturing companies may want to consider how to overcome these challenges. One option is to consider commercial vehicle leasing, to help offset vehicle maintenance and vehicle acquisition costs.

Contracting with a third-party service can help with DOT compliance and recordkeeping. It may help take some of the burden off the shoulders of the in-house regulatory or dispatch team.

Another possible consideration is to outsource some or all transportation needs to a reputable for-hire carrier. These carriers are already “in the business” of trucking. They’re already hiring drivers and complying with those complex federal and state regulations. They’re also often equipped to seamlessly support manufacturers and their customers.

Running a private fleet is beneficial to manufacturing companies in many ways, but it may be time to consider alternative options.