By Adam Putzer, CPC Logistics National Sales Director
Industry leading companies like Walmart, PepsiCo, Tyson Foods, Amazon and more choose to operate their own private fleets because they offer more control over transportation services and costs than dedicated carriers. According to the latest National Private Truck Council (NPTC) Benchmarking Survey Report, private fleets have continued to strengthen their market share despite the availability of for-hire truck capacity at competitive rates.
If you are considering starting or transitioning to a private fleet but are hesitant because of some common misconceptions, you are not alone. Below, we set the record straight on the top myths surrounding private fleets.
Myth: Fleet ownership is more expensive.
Controlling the costs of transportation is one of the main reasons companies choose to operate a private fleet. Oversight of operations like scheduling and routing as well as the ability to manage expenses related to equipment and labor can insulate companies from a volatile freight market where shipping costs rapidly rise and fall. When truckload spot rates increase, businesses save a significant amount of money by using their own fleets.
Having charge of their supply chains also helps businesses boost profits by ensuring their products always get to stores or delivery locations on time. Dropped loads by unreliable third-party carriers can not only result in missed sales but also cost a company’s reputation.
Companies that are considering starting a private fleet but are reluctant to make an upfront investment in their own vehicles, maintenance and fleet management technology can partner with a leasing provider. In the face of economic uncertainty resulting from external factors like tariffs, fixed monthly lease payments can provide predictability.
Myth: Operating your own fleet is risky.
Private fleets are the safest fleets on the road, leading to reduced risk and liability. In 2024, private fleets reported 0.52 Department of Transportation Recordable Accidents per million miles, which is three times better than the trucking industry average, according to the Federal Motor Carrier Safety Administration.
Private fleets’ stringent driver hiring and screening practices lead to these outstanding safety records. Many private fleets also have the autonomy to structure compensation plans to include payment for activities such as pre- and post-trip inspections. Incentivizing drivers to thoroughly perform these inspections is critical to maintain safety and compliance. Additionally, private fleets also adopt active safety technologies that offer unprecedented levels of visibility, tracking and analytics and the information needed to prove that accidents are not their fault.
Instilling a culture of safety within private fleets is essential. That is why CPC Logistics provides its drivers with regular access to a team of safety supervisors and managers, activities and resources such as ongoing in-person safety meetings and online training, and a recognition program that honors safe driving.
Myth: Outsourcing is the most flexible option.
Companies choose to operate private fleets because they provide control over service levels, guarantee availability, and assure cost-competitive transportation alternatives regardless of market conditions and for-hire capacity.
For many other organizations, the COVID-19 pandemic underscored the importance of control. Those with private fleets were able to rapidly adjust their freight movements and distribution operations, while those dependent on for-hire carriers were at the mercy of rising supply chain costs and capacity constraints.
On the other hand, a long-term contract with a dedicated carrier can hinder a company’s ability to quickly adjust to fluctuating demand, changes in product sourcing locations or distribution networks, and economic slowdowns and other catastrophic events. They may also come with mileage limits and other restrictions, impacting businesses with evolving transportation needs.
Myth: Operating a private fleet means dealing with more driver recruitment and retention headaches.
Hiring and retaining qualified drivers amid trucking industry issues like an aging population and high turnover are among the biggest challenges for today’s fleets. Fortunately for companies that operate private fleets, most truck drivers want to work with them because of factors like excellent compensation, predictable work schedules and an increased emphasis on safety.
And once they are on board, they tend to stick around. The 15-year average driver turnover rate for private fleets is only about 14 percent compared to 90 percent for the overall trucking industry. In addition to being time-consuming, constantly replacing drivers is expensive. Turning over a single driver is estimated to cost $12,000.
Working with a logistics provider like CPC Logistics makes it even easier for companies with private fleets to source and maintain a qualified staff of safe, responsible, skilled truck drivers. CPC handles the recruiting, screening, hiring, Department of Transportation compliance, general employment administration, and labor relations to maintain a staffing rate for its customers that exceeds 99 percent. This frees up valuable time and resources for companies to focus on their core business.
Myth: It is difficult to implement the latest technology into a private fleet.
Owning their equipment and managing their drivers allows companies with private fleets to readily adopt the latest technology—through buying or leasing—to measure, monitor and improve their performance. In fact, private fleets are known for being early adopters of technology, especially safety solutions like collision mitigation systems, cameras, and telematics that can be used to improve driver behavior, especially when paired with in-person coaching and mentoring. These can also be used to clear a professional driver of fault in the event of an accident.
Private fleets can tailor technology to meet their unique needs, too. For example, a private fleet can send proactive, customized advisories to drivers’ in-cab devices that warn them about potential hazards along their specific routes or at their delivery locations. Companies looking to meet sustainability goals can invest in fleet management and route optimization software that might not be accessible through a dedicated carrier.
In addition to continuing to add drivers for some of the top private fleets in North America, CPC is helping more organizations than ever before start a private fleet for the first time. If you are interested learning more about the advantages of the private fleet model, give me a call at 262-389-7971 or email me at a.putzer@cpclogistics.com.