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How to choose the right outsource provider

May 30, 2019
When researching an outside company to take over maintenance, or to provide dedicated contract carriage services, there are many concrete factors to look for.

In my last blog post, “It’s decision time for private fleets,” I strongly suggested that private fleets decide how to deploy their limited capital and human resources, given the technological advancements and environmental regulatory changes, coupled with the driver and technician shortages.

Outsourcing some or all of the transportation function is one option. A fleet can decide to get out of asset ownership and turn to leasing. It can opt out of the maintenance and repair business and find a company that can assume that burden. Fleets can also turn to dedicated contract carriage, an option that mimics the current operation of private fleets.

Regardless of which option the fleet chooses, it needs to make sure that it partners with someone who understands its needs and maintains its quality standards.

When researching an outside company to take over maintenance, or to provide dedicated contract carriage services, there are many concrete factors to look for. Considerations include:

  • Number of service bays
  • Number of technicians
  • Technician certification level
  • Technician training
  • Operating hours
  • Spec’ing expertise
  • Type and amount of shop equipment and diagnostic tools
  • Ability to digitally track maintenance
  • Customer support
  • HR expertise

The list could go on and on. However, a checklist of “haves” is only part of the equation for finding the right outsource supplier. What a fleet is really looking for is someone who demonstrates a keen understanding of its business, value, and vision, and who understands its pain points and can offer real solutions.

One key element to look for is transparency. Are they open in their dealings and willing to share what their true costs, to include their anticipates earnings, will be from the work you give them?

The right people, equipment and skills, along with a thorough understanding of your business and an openness about how they operate, are the winning combination a private fleet should look for when outsourcing some or all of its transportation functions.

About the Author

Joseph Evangelist

Joseph is a seasoned transportation executive with domestic and international experience in sales, operations, mergers and acquisition with heavy emphasis on post-acquisition assimilation planning to maximize new growth and business combination opportunities.

He joined Transervice in 2007 and currently serves as executive vice president with sales, operations and staff responsibilities. He is also heavily involved in new business development and account management.

Previously he was president of LLT International, Inc., an international transportation consulting firm with operations in the U.S. and the Far East. He oversaw the maintenance and fleet management of a 2,000-vehicle cement distribution fleet in Indonesia.

Joseph was also president and CEO of Lend Lease Trucks Inc., a truck rental, leasing and dedicated carriage firm with operations throughout the U.S.

He also was vice president/general manager of The Hertz Corporation – Truck Division, a subsidiary of The Hertz Corp. While there he participated in the acquisition and successful integration of the Canadian licensee operations.

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