The time of making a strategic decision in transport management: Own, outsourced or mixed fleet?
1 Department of the Euvaldo Lodi Institute (IEL), and Postgraduate Department of the Farias Brito University Center (FBUNI), Fortaleza, Ceará, Brazil.
2 Supply Management Specialist by the Euvaldo Lodi Institute., Fortaleza, Ceará, Brazil.
Review Article
World Journal of Advanced Research and Reviews, 2023, 18(03), 301–307
Article DOI: 10.30574/wjarr.2023.18.3.1079
Publication history:
Received on 26 April 2023; revised on 04 June 2023; accepted on 06 June 2023
Abstract:
Transportation is responsible for delivering a product to the supply chain, which is why it is often cited as a potential factor of competitive advantage for companies. However, more and more companies are opting to outsource their transportation service demands instead of investing in their own fleet. This research falls under the qualitative research method with an exploratory investigation level based on a literature review. Based on the literature review conducted, it was possible to conclude that the main advantages of a company-owned fleet are primarily the availability of transportation to the company and control over drivers and deliveries. The general objective of this study was to conduct a comparative study on the decision moment between an own, outsourced, or mixed road transportation fleet. It sought to highlight the best option in terms of cost-benefit and profitability, for the most dynamic choice among these modes of operation, with the goal of business profitability and sustainability. The research indicates that outsourcing increases competitiveness when the company-owned fleet is not sufficient to meet the demand, constituting a profitable solution. However, the balance between cost and vehicle availability is in the acquisition of a mixed fleet.
Keywords:
Transportation; Company-Owned Fleet; Outsourced Fleet; Mixed Fleet
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0