The decision on how a company's transport operation will be carried out can result from high costs and low service levels to an important competitive advantage, so it is interesting to analyze well the advantages and disadvantages involved in the different models, as well as the possibility of operating with own fleet, always thinking about which option makes the most sense for your daily operation.
The first point to be analyzed involves the company's operational and strategic decision to outsource its transport operation or not. Operating with own vehicles allows for greater control over the process, but the daily operational complexity and the difficulty of ensuring good occupancy in vehicles can be obstacles to using this model, therefore, one should check whether outsourcing makes sense. If the company is able to provide good productivity for its fleet, opting for this outsourced model can reduce the risks on the operation and provide greater agility in decisions related to the activity, being especially interesting for smaller companies or regional operations, where the complexity of plan, operate and manage is not very big.
However, choosing to use a mixed model, or even outsourcing 100% of your transport, can also make more sense for companies looking for more attractive costs and less operational complexity. There are more than 700 freight transporters in Brazil¹ (78% are self-employed transporters and 22% transport companies) and their ways of offering transport can also be customized for each company. The model that is closest to the own fleet is that of dedicated vehicles, where the carrier guarantees the availability of the fleet, and it is up to the contracting company to seek to make the vehicles more productive, therefore, they are recommended for larger scale operations and need for a higher level of service. .
Other outsourced models should also be studied, especially the closed-load and fractional-load formats. The closed load model consists of hiring transporters to carry out delimited routes in a consolidated vehicle, that is, there is only one shipper using the vehicle and only one delivery will be made, being recommended for operations with large and predictable volumes, such as transfers from factories to CDs. If the size of the transported cargo is small and for multiple destinations, a solution that is more adherent to this pulverized operation can be chosen, that of fractional cargo, where the carrier is responsible for consolidating the cargo of several shippers in their vehicles and charging only space or weight transported. Because of this need for consolidation, it is common for Lead Times totals of this model are higher, as well as the higher risk of breakdowns and low flexibility to adapt to the PGR (Risk Management Program) of each company.
As the reality of Brazilian companies is very complex, and normally involves continental distances, it is interesting to mix models in the different regional operations, as well as having a qualified team capable of designing the best format to seek both a reduction in operating costs and provide a Competitive service level in .
At ILOS we offer several #coursesILOS to improve knowledge about Logistics and Supply Chain. Later this year, we will have classes on the subjects of Transportation e Collaborative Demand Planning.
To learn more about Transport, here are some posts from our Blog:
Road loses share, but load matrix is still unbalanced
The quality of Brazilian highways has a direct impact on transport costs
Agribusiness in the fight to reduce the cost of transport
Sources:
http://portal.antt.gov.br/index.php/content/view/20270/Transportadores___Frota_de_Veiculos.html In 25 / 10 / 2019
Carlos Augusto Neto
ILOS consultant since 2018, a company specializing in the logistics and supply chain sector, carrying out projects, research, training and corporate events in the sector. He works on projects for large companies in different segments such as Pharmaceuticals, Clinical analysis, Oil and gas, Consumer goods and Logistics operators.
