The Logistics of Logistics REPOST: The Basics of Dedicated Contract Carriage with Bob Elkins
Bob Elkins and Joe Lynch discuss the basics of dedicated contract carriage. As the SVP of Ruan, a company that specializes in dedicated, Bob has a deep understanding of the service and the value it provides to shippers.
About Bob ElkinsBob Elkins serves Ruan as Senior Vice President, Industry Vertical Operations. Bob has almost 30 years of experience in the transportation industry, including global account management, operations leadership and commercial services. Prior to joining Ruan, he served as Senior Vice President and General Manager, Dedicated Services, Logistics, and first-to-final mile for Schneider National. Bob also served in the United States Army 1st Special Forces Group (Airborne), and early on in his transportation career he was an owner-operator of a small trucking company.
About RuanFounded in 1932, Ruan is a family-owned transportation company providing Dedicated Contract Transportation, Managed Transportation, and Value-added Warehousing. With more than 85 years of transportation experience, Ruan is one of the top 10 privately owned transportation service companies in the country. The company operates in 48 states, employs over 6,000 team members, and has more than 300 locations nationwide.
Key Takeaways: The Basics of Dedicated Contract Carriage- Dedicated contract carriage (DCC) is a third-party service that provides dedicated equipment (vehicles) and drivers to a single customer for its exclusive use on a contractual basis.
- DCC is a flexible service that offers all the service advantages of a private fleet and the convenience of a for-hire carrier.
- DCC in a sense outsources many of the challenging functions associated with managing a fleet. Services and materials provided may include but are not limited to ongoing operations management, technology, drivers, vehicles, vehicle maintenance, safety, regulatory compliance, risk management, and pickup and delivery instructions.
- Shippers who previously depended on carriers, 3PLs, and brokers switch to DCC to gain additional control, avoid price fluctuations and disruptions in the trucking market. Additionally, these shippers switch to DCC because they want the truck and driver branding that comes with a private fleet without the hassles of managing one.
- Shippers who previously owned their own fleet switch to DCC so they can focus on their core competencies and business. Companies that provide DCC, like Ruan are much better suited to manage the ongoing driver training, compliance and management. Additionally, the DCC provider is responsible for investing in new equipment, technology and ongoing maintenance.
- With dedicated contract carriage, shippers gain a transportation solution that functions as an extension of their supply chain. The tractors and trailers are often branded with the customer's company logo and image. Driver uniforms also reflect the customer's brand.
- The advantages of dedicated contract carriage include: improved on-time performance and service along with reduced cost and hassle.
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