Depending on the industry, it may be essential to rely on fleets to improve your company’s growth. However, deciding if a delivery fleet is a good business idea is not so easy. Ultimately, there are many businesses making significant inroads with regards to delivering on the roads. And it can be quite an expensive investment. This is why you have to ask yourself if fleets are a good idea or a fleeting one? Let’s show you some of the positives and negatives of getting involved in this industry?
The Pros of Fleets
A fleet of delivery vehicles provides a significant amount of flexibility, but that’s not to say it doesn’t come with its own unique challenges. But these days, there are ways for you to help improve the business side of things by keeping everything organised. It is not always easy to keep fleet organised, especially when they are venturing all over the country, but there is an abundance of fleet management software packages like FleetWave that provides invaluable support.
Additionally, when you are working within the same constraints, a private fleet of vehicles is very useful, guaranteeing that orders are delivered on time and the business never loses face. It’s also a perfect way to provide a more personalized service to your customers, which is great in terms of hand delivery. It provides that personal touch that can appeal to many people.
The Cons of Fleets
They are a wonderful way to have control over your product, but initial costs upfront could run the risk of crippling your business before it gets started. The initial cost of purchasing vehicles can be extortionately high. While you can find fleet sales, the cost will stay high throughout the first year or so.
It’s also important to remember that with the costs of maintaining the vehicles comes the cost of insurance. It’s possible to prevent maintenance problems, but the reality is that insurance for vehicles can prove excessive. This is why it is so crucial to prioritise maintenance, and only invest in what you can realistically look after.
Finally, there is also the concern of storage. When you are starting out, you are using the business to deliver products from A to B. When vehicles are not in use, they need to be stored safely overnight, which is why it is beneficial to keep them in one facility. It is cost-effective, but we must remember that it can prove expensive in the long run.
For all of the pros and cons of operating a delivery fleet, there is no arguing that it is a significant way to speed up your business quickly. Deliveries guarantee products get to their intended destination, not to mention the fact that the demand for personalised services such as deliveries is even higher because of online orders. In one respect, being the business that delivers items to its destination is better than the company that provides products. However, this type of business does not come without its challenges.
