dedicated contract carriage

Change can be hard, especially in complex operations with multiple moving parts. In transportation and logistics, the stakes can be even higher — ensuring business continuity, maintaining legacy knowledge and business data, and retaining staff are all top priorities when a transition occurs. Penske Logistics has transitioned hundreds of companies to its dedicated contract carriage services and has developed critical best practices to minimize disruptions and maintain continuity.

“One of the most critical things we do is ensure we have a good communications plan,” said Jeff Jackson, executive vice president of DCC for Penske Logistics. “We have a dedicated project management team that runs the implementations, and we put together robust customer-specific plans that provide full visibility so they can see where we are with the launch and have full transparency.”

One of Penske’s more significant transitions involved 35 sites and 400 drivers and was done in one day. “We sent teams to 35 sites to make the announcements and train and onboard drivers. We had over a 90% stick rate, meaning we kept nine out of 10 drivers,” Jackson said.

Retaining Talent

Employees are critical to a smooth transition. “In most cases, our objective is to retain all the customer’s existing drivers, provided they meet our hiring requirements. Our driver hiring center is engaged early on and provides a white-glove treatment to new drivers. We have a centralized team that does nothing but engage with drivers, which helps with continuity concerns.”

Additionally, Penske has over 11,000 drivers on staff and offers a breadth and depth of talent for any additional needs. “We also have an elite driver program with 100 drivers in various parts of the country and dispatch them for three to four weeks at a time. We can leverage that program to bring drivers in early to fill any gaps,” Jackson said.

As a best practice, Penske errs on the side of caution and tends to over-resource initially, pulling in extra drivers and equipment from its internal resources to reduce the risk of disruptions. “We have a dedicated person with Penske Truck Leasing who works with logistics and will handle the transition. It takes a huge burden off to know we have equipment available, and we’ll have priority when the fleet utilization is high,” Jackson said.

Penske also has a full suite of training videos covering various topics, from leadership to core functionalities. “It is easy for our team to train new staff quickly, which leads to a clean transition early,” Jackson said.

Maintaining Knowledge

It is essential to maintain critical data and information, which include electronic data and employee knowledge, and successful integrations are key. “We like to connect IT to IT, and HR to HR, and have those teams work together directly. They speak the same language and can run testing before the implementation starts,” Jackson said.

Penske Logistics has made extensive investments in technology and has expertise in IT integrations to ensure nothing is lost. “We have integrated with all kinds of TMS and ERP systems,” Jackson said.

On the labor front, Penske wants to understand the current compensation and benefits packages. “We have our own, but we want to know if ours is superior or inferior. We want to keep drivers whole,” Jackson said, adding that Penske’s strategy is not to move wages backward and this makes the compensation process as easy as possible. Plus, some customers fund retention bonuses to incentivize employees to stay.

Emphasizing Communication

A large part of a project’s overall success comes down to communication, starting with the request for proposal. “When companies put an RFP out, they need to have confidence that it represents the real solution. That is a common pitfall,” Jackson said, adding that the best start-ups happen when the customer looks at their processes and data before they come in so they can communicate them clearly. “The more transparent they can be with us, the better we can be. It takes both of us to partner to get the transition done.”

External communication is also important, so the customer’s sales department must understand the reason for the change and the value it will provide. Then they can articulate it to their customers. “Sales cannot be out of the loop. Customer communication is key,” Jackson said. “You have to build trust, and you need to build it quickly.”

With a robust communications plan, access to a wide range of internal and external resources, and extensive experience transitioning companies to dedicated contract services, Penske Logistics possesses the tools and experience to ensure a smooth transition with minimal disruption.

Transporting goods is a complex process, and the trucking industry faces a wide range of operating challenges. Shifts in capacity, fluctuating rates, rising insurance and fuel costs, and the ongoing driver shortage create uncertainty for shippers. At the same time, customer service demands and regulatory requirements continue to increase, leaving many shippers looking for a solution that will provide secure capacity, steady rates, and high levels of service, all while mitigating the risks of operating a private fleet.

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Food Logistics magazine has named Steve Chambers, vice president of operations for Penske Logistics, as one of the winners of this year’s Rock Stars of the Supply Chain award, which recognizes influential individuals in the industry whose achievements, hard work and vision have shaped the global cold food supply chain.

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Penske Logistics has earned entry onto the 2022 Top Food Chain Providers listing, as announced by Food Chain Digest, the official publication of the Food Shippers of America.

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When it comes to choosing a Dedicated Contract Carriage (DCC) provider, it’s important to identify your requirements and fully understand the benefits of a well-structured DCC arrangement before starting the selection process. That’s why we created this guide – to make available the critical information you need to make the best decision possible. Whether you currently operate a private truck fleet, utilize common carriers, or are evaluating the options available in ground transportation, this booklet will be a helpful resource in determining if DCC is right for you. It also provides a “how-to” in selecting a specific provider as your dedicated carrier.

There are many new entrants into the DCC market as the product continues to evolve. The more you know about DCC, the better decisions you can make for your transportation needs.

Penske Logistics has been recognized by the U.S. Environmental Protection Agency (EPA) SmartWay program as a High Performer in a pair of clean transportation categories. Penske earned the listing in the Truck Carrier Carbon Metrics and Logistics Freight Management categories.

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Jamie Rigot, vice president of dedicated contract carriage operations for Penske Logistics, has been named among the winners of Supply & Demand Chain Executive’s 2022 Women in Supply Chain Award. The award honors female supply chain leaders whose accomplishments and mentorship set a strong foundation for women at all levels of a company’s supply chain.

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When you need regular, dedicated deliveries to out of area locations, Penske Logistics’ shared dedicated transportation solutions provides a consistent and cost-effective alternative to less-than-truckload (LTL), parcel or expedited shipments.

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Cristy Sinclair, the first-ever Penske Logistics director of food safety, has been recognized as a 2022 Rock Star of the Supply Chain by Food Logistics magazine. The honor recognizes influential individuals whose achievements, hard work and vision have helped shape the cold food supply chain.

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Penske Logistics professional truck driver PJ Singh was named a member of the prestigious 2022-2023 American Trucking Associations (ATA) America’s Road Team. Singh is the fourth ATA Road Team Captain in the company’s history. Based in Stockton, California, he services regional food and beverage accounts.

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The second largest dedicated contract carriage provider

Penske Logistics acquired Black Horse Carriers in December 2020, integrating with the existing dedicated contract carriage (DCC) operations, and joining the already expansive DCC network in North America. Penske Logistics handles deliveries for various leading companies in a wide range of industries, including automotive, CPG, food, grocery, beverage, manufacturing, quick-service restaurants, healthcare, and convenience store chains.

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Penske Logistics, a leader in dedicated contract carriage solutions, has combined the operations of Black Horse Carriers, bringing together great career opportunities nationwide.

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Dedicated contract carriage (DCC) is a third-party service that dedicates equipment (vehicles) and drivers to a single customer for its exclusive use on a contractual basis. Using a DCC allows shippers to reduce costs, increase truck capacity and transfer liability. It provides all the benefits of owning a fleet while avoiding the worries. Some DCC providers also take on white-glove responsibilities, such as direct store delivery, front-door delivery, customer interaction, cross-docking and more.

Penske Logistics is proud to recognize and welcome 22 drivers into its 2020 and 2021 Diamond Classes, the highest level of safety recognition at the company. The inductees have achieved 20 consecutive years of preventable incident- and injury-free driving, an accomplishment that less than 1 percent of Penske drivers achieve.

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A pair of Penske Logistics professional truck drivers are finalists for the 2022-2023 American Trucking Associations (ATA) America's Road Team. PJ Singh and Scott Wood are among the 36 finalists announced this week by the ATA. Singh and Wood have a combined 50 years of industry-leading safe driving experience.

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Penske Logistics customer Cardinal Health has been employing a pair of Kalmar T2E electric truck yard tractors at its Riverside, California, facility for the last year. The overarching goal is to assess how implementation of electric vehicles can establish more efficient and sustainable operations.

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For the past 17 years, the American Transportation Research Institute (ATRI) has released its yearly report on the top issues facing the transportation industry.

The annual report is based on ATRI's vigorous surveying system, a cumulation of responses from truck drivers, motor carriers and other industry stakeholders. Each respondent ranks their top three concerns from a list of 30 pre-determined topics – along with their top three preferred approaches to address each main issue head on.

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Paving the way in innovative transportation and logistics solutions, Penske Logistics has been selected as a 2021 Top Trucker by Inbound Logistics.

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A Penske Logistics executive has been honored for his leadership. Supply & Demand Chain Executive has named Jeff Jackson, Penske Logistics senior vice president of operations – dedicated contract carriage, a recipient of a 2021 Pro to Know Award.

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The lifeblood of a strong dedicated contract carriage operation for a third-party logistics company lies in the quality of its truck drivers. At Penske Logistics, our 10,500-plus professional truck drivers not only pick up and deliver goods and services that are consumed daily by the general public, but he or she also performs vital customer service roles when interacting with our customers.

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Penske Logistics has successfully completed its previously announced acquisition of Black Horse Carriers, Inc., a privately held logistics company based in Chicago.

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