Do you do your own legal work, your own accounting or conduct surgery on yourself or your loved ones? Then why attempt to manage one of your company’s major expenses – Transportation.
Outsourcing the hiring, retention and training of your transportation department has proven to increase productivity and reduce overall costs.
Outsourcing this labor intensive area of your operation will allow you to focus on your core competency while allowing transportation professionals to suggest and create programs, implement plans and successfully run the entire operation as it relates to transportation and logistics.
This will increase your ability to hire quality drivers and management, decrease unwanted turnover, and increase productivity and efficiency while reducing costs traditionally associated with transportation. Outsourcing the services of transportation professionals will allow you to create an arm of your company that is as professional as the products and services that you have built your reputation on.
There are many questions that remain unanswered about driver leasing companies, also referred to as driver staffing agencies, PEO’s (Professional employment organizations), driver employment agencies, transportation management companies, etc. I will attempt to answer some of the major question that may be on peoples minds if you are considering outsourcing your transportation department or even if you are looking to work for a driver leasing company. Ok, here goes…
1) What is “Driver Leasing”?
Driver leasing is the practice of arranging to have your vehicles driven by professional truck drivers not employed by you, but acting as if they were. It is a specialized form of Contract Labor.
2) How does Payroll Administration Work? Clackmann Weather
Your company will enter into a joint relationship with the driver leasing company that is designed to allow you to grow and run your business, while the driver leasing company manages employment related issues. All employees are on the payroll of the driver leasing company and they are responsible for all elements of payroll, benefits, insurance, and reporting. You get a weekly invoice from the driver leasing company, and they should practically handle everything else!
3) Do driver leasing companies dispatch at night?
Some driver leasing or transportation management companies operate a 24-Hour dispatch center to support the transportation and logistics supervisors. You want to look for a company that provides this type of service in case you have drivers that call out in the middle of the night, or if you run late shifts.
4) What if our company already has an established fleet of drivers?
Some driver leasing companies will take over your entire transportation department if that is what you are looking for. For clients that decide they would prefer to concentrate on their primary businesses, some driver leasing companies would be happy to help you outsource your transportation department, while still having the ability to maintain the transportation department at “arms length.” It is best if a driver leasing company creates a customized program for you, based on a careful analysis of your needs and wants. You do not want to do business with a company that does not want to hear what your needs are.