Driver shortages. Limited warehouse capacity. Rising costs. Your in-house logistics team is facing never-before-seen challenges. Now add to this the impact of industry giants like Amazon who have raised the bar for immediacy and efficiency in the final mile—making customer expectations higher than ever before. The question confronting so many manufacturers and distributors: How can companies deliver a seamless customer experience without breaking the bank?
Despite covering the shortest distances, the reality is that final mile delivery accounts for roughly 53% of overall logistics costs. Much of this cost is associated with the drivers and vehicles necessary to ensure packages arrive at their final destination in optimal condition. But what if you’re overspending on unnecessary fixed expenses, and missing an opportunity to save during this tumultuous downstream supply chain period?
Accommodating demand amid unprecedented challenges requires strategic, cost-effective thinking to minimize spending. Here, we unpack how outsourcing drivers and vehicles can help your team cut costs, streamline delivery, and boost your bottom line.
A closer look at private delivery fleets
Opting for an in-house, private fleet is a much-debated decision that companies often make with a few factors in mind. Among the most common reasons for having an in-house fleet is the desire for flexibility and control over their brand.
For this reason, company fleets often recruit and train their own drivers, which means their internal team is responsible for hiring, onboarding, and managing drivers. This can be costly and time-consuming—yet also an opportunity to ensure your team operates under uniform, consistent values.
Private fleets own or lease their delivery vehicles too, which inevitably comes with benefits and drawbacks. The ability to add a logo to your delivery vehicle is a powerful advertising tactic, yet owning vehicles also requires a host of maintenance costs—not to mention the guarantee of depreciation over time.
While a private fleet may make sense for some companies, it is not the only final mile delivery solution or, necessarily, the most-effective one.
Why the final mile matters
A reliable fleet of delivery vehicles and drivers is a necessity for a smooth and efficient downstream supply chain, especially during the final mile.
Some argue that the final mile is the most important step of the package journey since consumers and end-users have the most visibility into this portion of the supply chain. A damaged, broken, or delayed delivery is what consumers will remember most about your brand—even if the rest of your supply chain is organized and efficient. And creating optimal circumstances begins with enough vehicles, and personnel, to quite literally deliver on customer expectations.
If the worry, manpower, and cost of supporting final mile delivery is starting to weigh you down, it may be time to consider outsourcing. At USPack, we bring decades of last mile experience and infrastructure to support companies with a reliable fleet of drivers and vehicles at a reasonable cost. USPack can transition your fleet from in-house to independent contractors or couriers, and alleviate logistics burden.
The value of strategic final mile outsourcing
When we transition your delivery fleet from in-house to independent, one of the areas we start with is educating your drivers around the economics of assuming a vehicle lease and help support them onwards. For drivers who don’t want to become independent contractors, we recruit their replacements and facilitate the process for their assuming the vehicle lease. For any vehicles that are no longer needed or worth keeping, we oversee disposal.
The benefits of transitioning to outsourced final mile delivery are twofold: 1) outsourcing is a fixed monthly expense for more reliable cash flow and budget management, and 2) your team can rely on a steady corps of drivers to ensure final mile delivery. This is particularly important amid severe driver shortages. That said, strategic outsourcing is most beneficial when your company aligns with a partner who understands and can adapt to your unique challenges and goals.
Finding the right last mile partner
The best outsourcing results come when you contract with a logistics provider who understands who you and your customers are. At USPack, we’re more than a delivery network—we’re your business partner. That’s why we work closely to design Adaptive Delivery Solutions that align with your specific business goals.
What does this look like exactly? Our Adaptive Delivery Driven Intelligence (ADDI) software suite delivers actionable insights that help customers save time and money. From agile integration and real-time tracking tools to business intelligence and forecasting capabilities, companies can expect heightened speed, efficiency, and accuracy in the final mile—fueled by data.
Manufacturers and distributors know they can count on the USPack’s extensive network of contracted carriers, fully-managed transportation solutions, and specialized resources to cost-effectively get their packages where they need to be, when they need to be there, in perfect condition.
Don’t carry more costs and concerns than you have to. Contact USPack to learn how we can help you seamlessly move to outsourced final mile delivery.