From guaranteed capacity to improved efficiency, business can benefit from a dedicated fleet

Companies that need guaranteed capacity or a high level of service can gain additional control through Penske Logistics’ Dedicated Contract Carriage (DCC).

Penske Logistics' DCC solutions provide dedicated resources to fulfill its customers’ transportation demands without requiring any of the investment of ownership. While Penske owns and maintains the trucks and manages the drivers, its customers schedule pickups and watch the delivery activity.

"We have a deep appreciation for each customer's unique requirements. It doesn't matter what business they're in," said Tom Scollard, vice president of dedicated contract carriage for Penske Logistics. "Once you understand the requirements, you have to demonstrate that you can execute on those requirements while also giving the customer control over the operations."

Scollard outlined six specific benefits customers obtain through utilizing a dedicated fleet.

1. High Service Requirements

Many retailers have implemented strict delivery requirements: dictate limited delivery windows and provide little flexibility if disruptions occur. That makes execution quality paramount. Highly trained drivers and dedicated capacity help fleets ensure they meet their customers’ needs.

2. Dedicated Capacity

Given the ever-changing atmosphere in today's trucking market, shippers must ensure they have the capacity to deliver their products. "Whether you self-operate or buy trucking services, overall capacity is limited due to the tight labor market as well as the growth in the economy," Scollard said.

3. Driver Recruitment

Finding and retaining drivers can be challenging. Scollard said some customers have turned to Penske both due to and in anticipation of the driver shortage.

"We have a customer who has around 400 drivers. They noticed they have a high percentage of drivers that are over 50 years old," Scollard said. "As they look down the road, they realized that when they have to start replacing 30 to 40 drivers a year due to retirement, they will have a problem."

With DCC, customers don’t need to invest in the infrastructure to recruit, hire, train and retain the drivers that are needed.

4. Driver Training

Exceptional customer-service requires increased driver training. Penske Logistics provides driver training programs and provides customized training for each account. "Our drivers have been highly trained on the specific requirements of each customer," Scollard said. "That is our biggest value-add."

5. Improved Efficiency

Penske Logistics provides a high-level review of its customers' shipments, including detailed data and specific "what-if" insights to help customers optimize their networks.

6. Supplemental Equipment

Penske Logistics' vast network supports DCC operations and is able to provide extra vehicles when needed. "With 700 Penske locations, we're never very far from being able to get our vehicles maintained, getting an extra vehicle or substituting a vehicle," Scollard said, adding that the extra capacity can ensure customers meet any surges in demand.

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