As the lifeblood for any retail business, a predictable supply chain is as important as the products you sell. This is especially true for car dealership businesses in this, the COVID-19 era. With the recent volatility in demand and manufacturing supply, it makes it even more imperative that dealerships tighten up the links in the chain that can be controlled.
Last-mile transport, or transportation from the manufactures to the point of use, is arguably the shortest link, but one that car dealers have the most control over. And since most dealerships have lucrative in-house service departments, this transportation leg includes not only completed cars and trucks, but parts as well.
So with this process squarely in the dealers control, it would make sense to keep the service in-house, right?
Today we want to convince you that although keeping this process in house may give the illusion of more control, last-mile transportation should be outsourced to professionals in the logistics and transportation business.
Beg to disagree? Read further and we’ll explain why.
Reasons Why You Should Consider Outsourcing Car Transport
With high margins, and relatively low overhead, the logistics and trucking sector is extremely competitive. As a result, trucking companies are short-lived unless they are constantly – and aggressively – pursuing strategies that yield cost reductions or increased efficiency.
In the era of “same day shipping” customer are now expecting better and faster service, specific delivery and pickup times, and better tracking and tracing of shipment.
Is it any wonder that the logistics companies in business for more than 10 years have proven themselves to be up to the task of delivering efficient on-time deliveries.
In short – they know what they are doing – else they wouldn’t be in business.
Considering All Trucking (And Towing) Options
While car transportation for dealerships brings to mind larger multi-car transporters, this options is only part of the equation as it pertains to last-mile delivery. Smaller, more nimble options like expedited trucking, and towing companies can be utilized depending on the particular transportation needs.
For example, rather than driving a newly purchased vehicle off of the lot, more and more high-end customers are expecting cars to be delivered on-site to their home. In this case an experienced towing service might fit the bill when home deliveries are concerned. With flat bed towing options, they are in the business of moving single cars or trucks with care from point A to point B.
Focus On Other Operations
One of the main reasons why it is best to outsource car transport rather than do it in-house is because it gives you the freedom to focus on other things. Instead of worrying about logistics, you can avoid that by hiring a reliable company to do it for you. With that, you can better focus on improving other aspects of the business that also need your attention. Maybe you need to level up your marketing strategy, creating CRM system, or you may need to focus more on training your people. You can focus on that and help your dealership grow.
On the other hand, if your dealership chooses to purchase a truck that can only transport a single vehicle, that wouldn’t also be ideal if you need to move multiple vehicles. Instead of purchasing multiple trucks that you might rarely use, the best solution is to outsource. Furthermore, you also don’t have to worry about where to store such huge trucks when they are currently not in use.
Better Customer Satisfaction
With pros by your side, you can better provide customer satisfaction. Sure customers like your products, prices, and services. However, if the car comes to them in a less than perfect condition, then that could degrade your reputation. Outsourcing to the pros ensures that the products arrive in time and in great condition. They are concentrated on logistic solutions so they know which is best for various situations.
With outsourcing to the pros, you eliminate the guesswork. They are experienced and updated with the current technology available in the field. That helps them provide the best service, which in turn helps you provide better customer satisfaction.
As we’ve mentioned, the pros in the logistics field are far more advanced than what in-house logistics are. That’s because they can easily afford even the newest technologies because they’ll get much use out of them.
For some car dealerships, upgrading regularly may not be prioritized. That’s due to budget issues. However, the pros have a better budget allocation when it comes to the latest technology or upgrades.
One of the technologies quite useful today is real-time tracking. With this, you can track the shipment in real-time. Even if your company doesn’t personally handle car transport, that real-time tracking can be of great help to ease your mind about your shipments.
Less Risk Of Damage
As a car dealership, you may know a lot about cars. How they work and how not to damage them. However, like a car dealership, you may not be aware of the risks that the cars face while in transport. That’s because you may still not have enough experience with regards to car transport.
Instead of risking your vehicles just to learn from experience, it would be best to leave it in the hands of pros. Outsourcing car transport lessens the risk of damage. They know how to tow multiple vehicles properly. They are well experienced in loading and securing cars without harming them.
Furthermore, their drivers are also experienced in driving huge trucks with heavy loads filled with vehicles. You just can’t learn to drive a huge truck in one day. There are techniques to turning or positioning the trucks so it can go where you want it to go without harming any of its load.