We define dedicated contract carriage as a customized bundle of transportation management services used for the delivery of raw materials or components inbound or finished goods outbound to an end-user. More simply stated, the DCC solution adds value by optimizing freight flows while meeting a customer’s service goals. DCC is a flexible service that offers all the service advantages of a private fleet and the convenience of a for-hire carrier. DCC isolates and seeks to improve the response to each of the challenges associated with operating a private fleet including operations management, drivers, vehicles, maintenance, safety processes, regulatory compliance and risk management.
In DTS’s case, the DCC product implementation process begins with a complete transportation analysis, a model utilizing advanced logistics planning and operating tools. This leads to the creation of a distribution plan, including the routing and scheduling of vehicles, the efficient use of vehicle capacity and overall asset utilization. The plan is then implemented with the objective of improving cost efficiency and service to the end-user.
Other value-added services provided to specific DCC customers may include: driver recruitment and training; yard management; special handling of products; unattended delivery; technology and communication systems support, including on board computers; freight consolidation and de-consolidation; reverse logistics; and a model for continuous improvement, to name a few.
One more point. The application of DCC is often integrated with other transportation management solutions. Air, rail, sea and highway carriers are often needed when customer freight flows cannot be efficiently handled solely by DCC. Providers that can select appropriate transportation modes and individual carriers, then place the freight, monitor performance and audit the final invoice, offer an important service to a customer. In addition, providers that can aggregate orders into loads, look for shipment consolidation opportunities, provide load tracking capabilities and organize backhauls add further value to an integrated transportation process.
You actually will have more control because we have additional resources, such as a driver pool if a driver gets sick or goes on vacation. We also have additional equipment in case of a breakdown, accident or mechanical failure. This will increase your service level to your customers because you no longer have to call and tell them why you will not be there. Additionally our equipment is tracked by satellite so we are watching the loads as they move. If something should happen we are made aware of it usually in time to make adjustments and still deliver on time.
Listen to our President Scott Stowers share one of the early success stories as DTS served a flooring distributor in Florida.
A True Win ~ Win ~ Win
The cost of a DCC operation is normally very close to that of the existing private fleet. As mentioned above, through the use of driver pools, additional equipment, on-board technology, innovative fuel/MPG management etc. we will operate more efficiently than a private fleet. As a result we are able to be very cost competitive with existing operations.
Yes. It is our goal to make as few personnel changes as necessary. Our benefits are very competitive and the pay is the same for those who meet our employment criteria. We make every effort to retain all the qualified drivers including bridging vacation time and 401k vested money.
We provide a comprehensive benefits package including major medical, life insurance, 401K etc., all managed through national providers.
Benefit costs vary depending on the level of coverage selected, single, married, family etc. For current costs please contact our HR administrator.
The term of the agreement based on the useful life of the equipment. The useful life of the equipment is based on the estimated number of annual miles. Contracts vary from 1-6 years.
Yes, if you want them to. Our trucks and drivers dedicated to you will look like you want. Drivers will wear uniforms with your logo, and trucks will look like your fleet trucks. We have found that many companies lately would rather not have their logo on them due to liability exposure, in this case the trucks and drivers would have the DTS logo.
You won't. You don't have any trucks anymore. There will be no need for your company to have a DOT number anymore.
Our power equipment consists of all late model units leased from national providers. We also have dry van trailers, flat beds and tankers in our fleet.
Our radius of operation is different by account, but we have local operations, regional, and over the road. Because of this we have the ability to keep good drivers as their family requirements change, changing their home time requirements just by moving them from one account to the other.
Our customers tell us that DCC allows their management to be more focused on their customers and core business issues. In addition, customers note a number of direct benefits including increased competitive positioning, improvement in the management of risk, better utilization of capital and integration of transportation with their overall supply chain.
DCC is a flexible offering that can be viewed as part of a company’s marketing strategy. It allows a company to expand markets, add new products or “customize” solutions for their customers who have special needs, such as just-in-time delivery. DCC may help reduce the distribution costs, making products more price-competitive. It’s a solution that helps companies control costs by optimizing the operation of a private fleet and, in some cases, the management of a company’s entire transportation system.
Companies that use DCC are able to better control labor issues, workers’ compensation and government compliance requirements that are associated with running a fleet. And since there is no capital outlay for equipment, companies do not have to carry assets “on the books,” which may improve their return on investment (ROI).
Business challenges may cause a company to focus on core competencies, while they rely on a provider to create a distribution process that improves customer service. For some companies, the motivation to use DCC may be as simple as management wanting to control costs.
We also hear from companies that want to expand into new geographic markets. In other cases, the challenge may be the consolidation of a transportation system after a merger or acquisition. Or, the outsourcing decision may come after rapid organic growth, requiring more shipment capacity and flexibility. Other events that stimulate the use of third-party DCC include high driver turnover, labor unrest, hours of service violations, negative DOT audits and the outlay of capital for non-core requirements like vehicles and supply chain technology.
In general, it’s time to outsource when service demands from a company’s customers can no longer be accommodated by the existing distribution system. For many companies, outsourcing DCC may create efficiencies that provide a competitive advantage in the marketplace, add value and impact the bottom line.
We have found that a diverse group of companies, representing a wide array of industries, experience service and cost improvements through DCC. As an example, good candidates for the DCC product offering include companies in industries that have time-sensitive deliveries or special handling requirements. Products such as newspapers, baked goods or refrigerated products come to mind. Components that are delivered in just-in-time manufacturing are another example. Products that have high value such as those in the hi-tech, telecommunications or pharmaceutical industries are often shipped via DCC. Another circumstance that favors DCC would be product distribution requiring multiple modes of transportation – air, sea and road – to reach a final destination, multiple stops on a closed loop highway route, or unattended delivery during off-hours. All frequently benefit from DCC.
Certainly experience is important, particularly if a provider has customers within a company’s industry or similar DCC applications. There should be a process by which a provider evaluates and presents a plan that adds value to a company’s current supply chain and customers. Then the DCC provider must demonstrate the operating experience to implement the plan, using experienced people, processes and technology to achieve predetermined goals. The provider should be focused on monitoring key performance indicators on an ongoing basis, so the system can be adjusted or continuously improved. A DCC solution should offer economic benefits and improvement to a customer’s competitive market position.
Finally, a provider should be able to offer and integrate other services such as carrier management or lead logistics management, when those services are deemed to be appropriate. When a provider offers a broad array of services, it can recommend and apply those services with objectivity and without bias.
Listed below are the top problems companies face in managing a private fleet. By outsourcing their transportation DTS can solve these problems for their company. Transportation is all we do, and we already have systems, people and processes in place. Together we will evaluate the clients system from order taking through customer delivery including the inbound raw material procurement, to determine how to best service them and their customer. DTS will work with you to provide the best alternatives.
Top 10 Problems facing Private Fleet Managers