Because the extra $400 covers the overhead of a small operation but won’t for in house transportation program. It gets costly, paying the up front cost to establish the authority, then seeing an increase in labor costs which are not covered by the savings because they have to hire experienced logistics people for the segment to make sure their product is moved. The back office staff for a Walmart operation has to be more than 20 people, and while they may see a $50k gross, the benefit costs push that up to $75 to $80k. Not to forget now they have an increase exposure to the liabilities of the authority and possible litigation costs of an accident or incident.
Could a shipper lease on owner operators?
Discussion in 'Ask An Owner Operator' started by Bobtsu50, Feb 14, 2025.
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Last edited: Feb 16, 2025
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Comparative advantage.
Shipper spends their time and money, focusing on their product or more than likely be more profitable than taking away that focus to another task. @Ridgeline stated there is liability in transportation. -
You mean like Ashley furniture or Hobby Lobby does ?
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The price of their goods for sale reflects what they pay out to maintain a private fleet.
Nalco/Ecolab is starting to get their own private fleet rolling now and getting away from using 3rd party major carriers like QC, Altom,Heniff,Schneider. -
Exactly. What i meant was they manufacture a product and transport the product also with their own equipment.
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