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Material Handling Equipment

Top 3 Benefits from Partnering with a Professional 3PL for Dedicated Capacity

Posted by Michael McClelland
A flexible and reliable capacity strategy is essential to compete in today’s dynamic supply chain environment. When your business requires the highest level of service, guaranteed capacity, or a positive extension of your brand, a dedicated program can provide the necessary support.

Dedicated capacity programs vary based on the complexity of their needs and demands. From a traditional short-haul shuttle operation to in-home installations with reverse logistics, Dedicated Contract Carriage (DCC) operations offer the most reliable mode with the highest service level available.

2020 has proven to be a dynamic and challenging year for shippers to manage their networks. Forecasts have been derailed and eCommerce volumes have continued to explode, highlighting the need to control capacity and provide exceptional customer experiences.
 

 

1. Committed Capacity

The most reliable, flexible mode available to shippers with the lowest claims ratio is DCC. As an extension of your operations team, a DCC program ensures capacity while meeting that the unique nuances of your product are met. This helps to ensure your products arrive on time and damage free. Your freight is never co-mingled, so the success of the of delivery is not dependent on the actions of other shippers.

Drivers report to a local dispatcher trained specifically on your business needs. This mode also has the lowest turnover – approximately 15% compared the industry standard of 100% for common carriers. When your shipments are critical to the success of your customers, DCC delivers.

 

2. Insulation from Freight Market Volatility

2020 has highlighted the need for shippers to not only understand the swiftly changing freight market but also have a strategy to mitigate the impacts of exaggerated rates. DCC commercial agreements are based on operational costs derived from engineering a solution that maximizes asset utilization, NOT external market factors. Working with a professional transportation management company will allow you to implement the appropriate assets necessary to meet volume requirements while controlling costs to align with your budget.

 

3. Brand Protection Through White Glove Services

The most complex DCC networks require White Glove Services. Whether your customers need in-home delivery, installation and setup with dunnage removal, or reverse logistics, White Glove is the solution. 3PLs can allocate non-CDL driver agents utilizing straight trucks or vans rather than traditional Class 8 truck drivers, resulting in the most nimble, customizable network possible. Driver agents undergo intense, customer-specific training with superior focus on protecting the shipper’s brand which drives loyalty. After-hours, inside, and unattended deliveries are no problem for dedicated White Glove networks, and they can provide your business with a seamless transition into heavy B2C volume.


As supply chains become more complex and consumer demands increase, having a proven partner with experience ranging from material handling to transportation is essential. A 3PL proven in these disciplines will engineer an economic solution and act as a proud ambassador of your brand. Choose a partner that has built their reputation by protecting yours!

Topics: Transportation
Michael McClelland

Written by Michael McClelland

Senior Vice President, Transportation

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Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management, and information technology—all engineered for Operational Excellence.