The time of making a strategic decision in transport management: Own, outsourced or mixed fleet?

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.