Outsourcing gives many managers and business owners anxiety, but it can also be very useful for your business. Many managers are worried about outsourcing because this means that you’re hiring a third-party business to fulfill a service. This allows you to get more done, but it also gives you less control over operations. You’ll learn about some of the major benefits of outsourcing and why it can help.
Outsourcing your transportation needs can make even the most resilient business owner nervous. You are highly aware of costs and you want to ensure that every penny is spent properly and geared towards your overall growth. Owning your own trucks may cost less in the long run, but that’s not always true. You have to take care of insurance, maintenance, paying drivers and everything else that goes along with owning a truck.
You don’t need to worry about unexpected costs when outsourcing. Not only that, but you can often outsource only when needed. This means that you’re only paying the company when you have something to transport. That’s very different from owning your own truck. You’ll have to pay for maintenance and everything else regardless of how often you’re transporting cargo.
While there is a cost involved, this is often worth it and allows you to make more overall.
One of the benefits was explored in the previous section. When you own a truck, then you’re responsible for maintenance and all other costs. You don’t have to worry about that when outsourcing. More than that, you also don’t have to worry about the size of your fleet.
For example, say that all of your trucks are being used and someone approaches you with a huge job that you can’t turn down. Now you have a load to pull, but no trucks to do it. You could rent or get used dry van trailers for sale. According to the experts at Hale Trailer, “dry van trailers are a smart investment for owner/operators and fleet managers who are looking for durability and versatility.”
While this is a good idea in some situations, it could take too much time or money. Outsourcing your truck service ensures that you can get someone else to do the job while you collect the money. This allows you to take on jobs regardless of the size of your fleet.
There’s also driver management issues. Trucks might be expensive at times, but you know what types of problems to expect from them. Drivers are a whole other issue. Some are highly reliable and get the job done right with no issues. Others can be lazy, take peculiar routes, rarely finish the job on time, have personal issues that impact performance and might be difficult to deal with. Even if all your drivers are great, there’s all the paperwork, invoicing, insurance, payroll and other issues to contend with as well.
You don’t have to worry about that when outsourcing. Those are all the problems the other company has to deal with. If you choose the right company and ensure that they have a proven and successful track record, then you shouldn’t have to worry about anything.
There’s also reduced risk. If your driver has an accident, then you have to pay for repairs, legal fees depending on if they hurt anyone and various other headaches. If you outsource, then all of that is on the other company. The only risk in this case is that the shipment might be a little delayed.
The Importance of Business Growth
There’s another benefit to outsourcing, but it’s so important that it needs its own section. Business growth is essential. If your business isn’t growing, then it’s stagnating. Not only that, but a business that cannot grow often finds itself turning away jobs to their competitors, which can actually harm your business over time.
Outsourcing ensures that you aren’t limited by your fleet. If another job comes up, then you can continue to serve your clients by outsourcing the work. This allows you to grow, build new relations and make money even if your fleet isn’t directly carrying the cargo.
You’ll find that outsourcing allows you to grow your revenue and overall list of clients without having to buy or rent more trucks.
Outsourcing your truck service, either partially or entirely, can be anxiety-provoking because this requires you to spend money and extend trust to another company to fulfill your routes. At the same time, this has many benefits and can help your business grow.