you have interest in these other 10,and if so, could we be more flexibleon rates with the additional volume?’”Ultimately, Orr believes carriers have tobe more open and able to provide creative solutions that help shippers figureout how to better manage the ebbs andflows in their supply chains.
THE CHOICE TO GO PRIVATE
Why does a shipper look to a private
fleet or dedicated operation, and what
are the risks?
Ron Baksa is director of fleet procurement for Plano, Texas-based PepsiCo.Between its soft drink and snack products, PepsiCo, by one trucking industryranking, operates the second-largest private fleet in the U.S. with some 62,400total vehicles: 14,300 tractors and 48,100trailers.
The very first question Baksa suggeststhat those considering a private fleet askthemselves: Are you ready for the commitment in capital, people, systems—can you manage it all? “The combination of people, process, and technologyis a huge component,” he says. “Youneed all three to realize the full benefit.”PepsiCo’s transportation footprintincludes long-haul trucking betweenplants and distribution centers, androad trucks that deliver product fromdistribution centers to stores. Its trucksalso go to market with products delivered to customer warehouses.
As for the advantages of operating aprivate fleet, Baksa says a key benefit ishaving “a cushion against [trucking]market conditions, both operationaland financial. You are always able tosupport the business if you have a significant private fleet,” he says.
Another advantage is the ability tomatch equipment precisely to productneeds. “A common carrier will have ageneric 53-foot dry van for all business,”he explains. But that’s not always themost efficient choice. “If you have avery lightweight or cube-sensitive product, you can haul quite a bit more bypurchasing a large-cube trailer. Or forheavier product, you can spec morelightweight equipment,” he says.
The challenge is finding—and main-
tive change management. “We
talk change management from the
outset, from the C-suite to the
loading dock,” Bozec says. “If both
organizations don’t get that right,
we won’t be as successful as the
customer wants us to be and we
want to be.”
Greg Orr, executive vice presi-
dent, North America truckload for
TFI International, and president
of Joplin, Missouri-based truck-
load carrier CFI, noticed during
March and April customer interest
in what he terms “pop-up” fleets.
“We’re being asked to provide
short-term [60 days or less] com-
mitted capacity, deploying assets
in certain lanes or between certain
regions to address a surge in vol-
ume and ensure they’re delivering
product to the end-customer in a
timely fashion,” he notes.
He also is seeing shippers looking to expand current dedicated arrangements. “Customers arecoming to us saying, ‘You arehandling five of these lanes, would
TRANSPORTATION
PRIVATEFLEETS
