The vast majority of Brazilian industries have opted for outsourcing in various sectors. The legislation does not allow outsourcing of the company’s core activity, that is, it is not allowed to outsource the production chain, subcontracting it, necessarily creates an employment relationship.

To obtain a successful partnership, the most important thing is to make a careful selection of the carrier, just as hiring good employees makes all the difference to the company’s success, outsourcing needs excellent partners. In the series “How to hire a carrier” we list some essential requirements to be analyzed when selecting a transport company.

We list 5 advantages when outsourcing your company’s transportation:

1) Reduction of driver labor costs
Here is a reflection on the direct and indirect costs, which is the hiring of specialized labor in an activity that is not the objective of the industry, the truck driver. In addition to the costs of selecting and hiring the professional, we have the salary, benefits, vacation (during this period, the cost of replacing the professional or hiring a third party), labor liabilities, overtime and the investment in keeping the vehicle and the professional inside legislation and all the updates that happen frequently.

2) Workforce training
No matter how good the driver is, continued training is extremely important for this professional, who is the company’s business card, who daily visits its customers, delivering their products. There is no school or vocational course to train a truck driver and for this professional to develop it is necessary for the contractor to provide ongoing training and qualification.

3) Fleet maintenance
From scheduling stops for washing equipment, proper cleaning, control of supplies, maintenance of mechanical, electrical, reading the tachograph disk, control of the working day, routing of the vehicle and control of deliveries demands the work of a third person so that transport management is efficient and optimized. The cost of these services is not always accounted for when calculating the cost of the fleet itself. We must remember that taking care of documentation, fine management, fleet insurance, life insurance and cargo insurance, managing all the risk is not an easy task.

4) Team productivity
It is known that when transport becomes outsourced, productivity, collections and deliveries increase. This happens, because in the carrier, there is an operational team that is responsible for routing and productivity of vehicles during deliveries. For the carrier, making all deliveries within the driver’s working hours is the goal. This is how carriers can obtain financial results with their vehicles and their team, increasing productivity and for that to happen, a support team is needed to help the driver, designing the best routes, opening delivery times in case delays, managing the time of each delivery and taking care mainly of the legislation, offering support and helping the driver to fulfill his journey with the rest times.

5) Investment in fleet
The capital invested in equipment could be used in other areas of the company, from innovation, to equipment for the manufacturing area or even in the commercial area of ​​the company, to increase sales, which is what really matters for companies. Among so many other means to direct this resource, invest in fleet, IT and structure to manage the fleet are financial expenses that are often not made and this can compromise the quality of the services provided and when done, they are expensive.

We hope this article will help you analyze the advantages and disadvantages of maintaining your own fleet. After all, outsourcing transport services that are not part of your commercial, industrial objective, with a suitable carrier and really specialized in the services you propose to perform is a great differential for your company.

TRANS REID has extensive experience in fleet outsourcing, experience accumulated in more than 30 years of logistics operations in the most diverse segments.