Private Fleets and Shipments



Private Fleets and Shipments

Transportation

The third party logistics, distributors, and manufacturers all have specified business processes and needs concerning the transportation of product and goods from origin to factories to warehouses then to client places. The transportation system between the locations can be monitored through various software and checks of the movements. To increase the efficiency of the transportation system, every company looks for the better system which can provide the product to customers on time. In order to provide these features, the company has to modify the transportation system (TMW Systems Inc, 2009).

In the Untied States, there are several transportation systems adopted that include rail, air, road and sea networks. The mode of travel depends the distance to cover. For long distance, the people prefer to go for air travelling because it saves time and provides more comfort as compared to other modes of travelling. Some people choose road travelling for adequate distances because they enjoy the road tour and land sceneries. Some portion of the people also prefers to use sea networks for the journey.

In contrast, the case for the goods is different because many companies like to send their good through shipments and prefer to send from individual private trucks. Private fleets account for about seventy five percent of the trucks running on highways of United States, in which most of the trucks are heavy duty trucks. Private trucks account for fifty six percent of the freight system, according to a report 4.45 billion tons of the material move annually through motor carriers. The private fleet management revenue exceeded by 300 billion dollars in the year of 2008 (Farris & Pohlen, 2008). Where as, the contract carriage services are also increasing day by day. This preferred to hire mostly by small businesses, which cannot bear the private freight services privately.

Report With An Assessment Of The Company Investing In Its Own Delivery

It is a general rule that if the service is private then the total profit would be yours. Prior to 1980's Act of motor car, the ICC (Interstate Commerce Commission) regulated carrier competition, service, and rates. To protect the company, most of the corporations ran own fleets to have the lower rates of freight and higher service levels as compared with the external hired carriers. The law also deregulated factories and fundamentally changed the working environment by setting free the service competition and aggressive price. Some of the logistics managers obtained for external carriers could give the high level service, and reduce cost, and ultimately stopped the private fleets. The American trucking association produced that the cost of hire trucks decreased by 25 percent of the cost of the privately running fleets (Farris & Pohlen, 2008).

The investment in the private fleet will produce benefits such as, time saving and extra payment to the service providers. If the company is giving the contract to any outside freight transportation system then they would ask the amount including critically their fuel charges, driver fee ...