What to expect from a dedicated contract carrier

Baldi2 Headshot Copy Headshot

As a fleet manager considering moving to a dedicated contract carrier (DCC), you are looking to transfer the responsibility of your transportation functions and the associated liabilities to a third party.

When you do so, you should expect the transition to be seamless, with the same or improved service to your customers. The primary reason for considering a DCC is to be relieved of the challenges of operating your own fleet of trucks while focusing on your primary business. You should expect the burdens of operations, maintenance and compliance (with ever-changing regulations) to shift to the DCC.

Key deliverables when shifting to DCC

Same or better service
Your customers should not notice any degradation in service levels. The DCC should provide your customers with the same quality of service and on-time delivery, or better than your operation did in the past.

Vehicles spec’d with the appropriate technology
Vehicles should be designed with up-to-date technology that will improve operating efficiency and safety.

Response to surge demand
A DCC should be able to respond to demand surges by ensuring there are enough trucks and drivers to meet your peak demand and any seasonal surges.

Well-maintained vehicles
All vehicles should be well-maintained so they perform for the length of the agreement and operate safely for both drivers and the general public.

Clean vehicles
Under the DCC model, you, as the customer, have the option to brand the trucks however you see fit, including decaling the truck with your company name instead of that of the DCC. The trucks can function as a moving billboard for your company (if that is your preference), playing a big role in your company's image. Clean trucks send a message to drivers, customers, and the general public about the quality of the fleet.

Breakdown service
If a vehicle breaks down, it is the responsibility of the DCC to see that it is repaired and to ensure that a replacement vehicle is dispatched. Swift response to breakdowns guarantees timely load delivery to reduce any impact on your customer. Major breakdowns should be limited with a regularly scheduled PM program to ensure vehicles are maintained.

Partner Insights
Information to advance your business from industry suppliers

Substitute drivers
If a driver calls out, is ill or on vacation, the DCC MUST provide a qualified substitute driver to cover the loads at no additional cost.

Plan for vehicle replacement
The DCC will provide a scheduled plan for replacing vehicles based on age, miles, condition, etc.

Contractual rate obligation
There should not be additional charges to backfill for trucks or drivers that are part of the core fleet.

Moving to a dedicated contract carrier relieves companies from all the headaches associated with transportation and logistics, and those switching to the DCC model should have high expectations for the type of service they will receive from a DCC.

Jon Baldi is Senior Vice President of Customer Solutions at Lily Transportation LLC. He has been with Lily for more than 30 years. A Bentley College graduate, he has successfully developed, grown, and supported Lily’s Dedicated Contract Carrier business with his extensive knowledge of logistics system design and engineering.