In the last 50 years, the mode of road transportation has expanded rapidly for both passengers and freight transportation. Road freight transportation is the most exceptional amongst the methods of transportation and it is most widely utilized in Europe, Africa, and North America. It involves a single custom record process that allows consistent goods transportation over different states and nations. It’s no surprise that the road freight transportation industry is expected to grow by 2.3% per annum from $40.5 billion in 2015-16 to $47.0 billion in 2021-22.
Road freight provides several advantages over other modes of transportation such as:
- It offers cost-effectiveness with low capital cost making it easy for new entrants
- Door to door and quick delivery is possible
- Deliveries are possible in local neighborhoods as well as across borders without much hassle
- It provides extremely flexible services by providing an estimate of departure time and arrival time
- Goods packing cost is lesser when compared to other modes of freight transportation
Running an armada of trucks requires a significant investment and is a dedicated work in itself, not to forget the cost, time and effort that would go into handling a warehouse. Unless you don’t own a trucking business, it’s best to assign your coordination needs to those with experience. Let us delve deeper into the 5 main benefits of road freight for your business.
1. Save Capital Investment
Buying trucks to transport your goods is not only illogical but also costs you dearly. You will need valuable assets to purchase trucks to transport your products, and after that, you’ll additionally need to consider warehousing needs. This can lead to a noteworthy depletion in your capital venture. This capital could have otherwise been utilized for expanding your business through innovation and technology.
Moreover, if you add credit to your business to buy your own fleet, at that point you’re furthermore including interest and maintenance costs and the trucks wind up costing more than their estimated worth. You would also need to consider the expenses of hiring drivers, paying for enlistments, insurance, administrative costs, support and maintenance, and also fuel. All of this can burn a hole in your pocket.
2. Increase Storage Flexibility
The responsibilities of road freight do not end at successfully shipping the goods to the delivery location. They also take care of the storage of goods. The warehouse facilities provided by the road freight industry ensure storage flexibility for your business wherein they adapt themselves to your changing storage requirements from time to time.
This means you will get the storage according to your specific needs. You would not have to bother about finding more storage space or paying extra for unnecessary storage.
3. Accessibility to Database & Resources
Besides saving capital costs from not buying trucks you don’t have to fret about getting supplementary gear that comes along, for example, additional forklifts, temperature controlled storage spaces, pallets etc. Road freight would also bring immense software advantage along with other resources. They can use their decade-long accumulated data of products, prices, carriers and schedules to your advantage.
In many cases, they may even have access to carriers’ data and a direct partnership with the carriers as well. It’s just a matter of putting all the useful information together to your benefit such as finding the most frugal routes for the shipment, automating the shipment processes etc. This can significantly benefit your business by reducing labor and increasing the efficiency of deliveries.
4. Save Precious Time
Opting for road freight for your business can also save you ample time. This implies that you don’t need to worry over each and every one of the procedures involved in the supply and delivery process. This includes taking care of the vehicles as well as their storage.
The time that you will save from these tasks, can then be better utilized in tasks that will create better products or better services for your customers. The challenges and difficulties in shipping and delivery would not be a matter of concern for your employees and they can focus more on the development and innovation of business.
5. Carrier Price Leverage
Today, the carrier market has become very competitive. Most of the carriers are functioning at their full capacity and have many buyers to choose from. The businesses no longer have the supremacy over price negotiations with the carriers.
Freight industries have a close network of numerous clients that allows them to leverage huge buying power. Working with the road freight industry can thus give you a price leverage. This means that the business won’t have to compete with rivals in terms of low rates. The freight companies will take care of the price negotiations This will prevent you from competing with low freight rates of rival companies.
Road transportation has grown tremendously and has become far more complex than it used to be before. Unfortunately, most of the businesses are failing to keep up with this pace. With the road freight industry reaching the pinnacle of the cost segments for any business, it has essentially become imperative to find a partner who can bring down these charges.