In-house managed versus outsourced supply

Clearly a company’s decision on whether it is sensible to manage a specific service in-house or to “contract out” the service (outsource) can only be determined by carefully analysing the various risk factors, and weighing the benefits between each option. It is also fair to say that whilst some business areas can work well under a contracted out basis, others will not, and the client could be placed at serious risk of an inferior service being maintained.

Transport Management is one of those areas that falls clearly within the “Service Sector” and hence can work extremely well under an outsourced contract basis. This is provided the “right Service Company” has been researched and sourced to cover the contract, and such that they have both the required staff, experience, systems, and market capability to achieve longer-term success.

It is normally expected and written into the contract that any such travel and booking arrangements are based on carefully pre-determined Service Level Agreements. These SLA levels (clauses) will form the basis of the underlying agreement, and as such ensure that both parties (supplier and client) have a fair and sensible agreed framework to work within. The contracts wider Terms and Conditions document will form the basis of the legal agreement between both parties, and as such cover all areas and clauses to be adhered to.

Advantages of Outsourced Supply

Given our extensive experience within the coach and bus and wider transport/logistic sectors we at Coach Direct feel that there are certainly many benefits to be achieved by placing your trust in an organisation like Coach Direct in order to plan, conduct and manage an efficient transport service for your own staff and client base. To justify such a statement you will need to carefully analyse our business, however, we would like to be bold and say that we can justify our capability in the following bulleted areas:

• Coach Direct have the required experienced staff and systems to handle most contracts
• We have the required market reach and operator base to locate the required vehicles at very short notice – where, when, and in what quantity – as is required by our clients. It’s all hands on deck to locate a vehicle at short notice when required.
• Our business is geared to handle all size contracts and we see ourselves as a true market leader in transport outsource capacity
• Keen to grow and improve by further enhancing our underlying systems and approach
• 100% aligned to management of key accounts business and keen to support throughout the relationship cycle at all stages and levels
• Prices remain the same even if last minute replacements are required
• Will always make sure the passengers are NEVER left stranded or without a vehicle/s IF breakdown situations occur
• Use only vetted and CoP compliant supply partners who we trust.
• Carry out Due Diligence on all potential new supply partners prior to acceptance
• Established and respected since Companies House Incorporation in 1997

Disadvantages of In-house managed could include the following:-

The most common problem with In-House Managed Transport is when a client makes contact for a last minute vehicle/s due to the original company they booked with letting them down. Panic sets in (and we totally understand and sympathise with that) and they need a replacement NOW. We will obviously do our best for the client, however, at certain times of the year it is impossible to find replacements quickly unless you have the systems in place, so the passengers could be waiting for a long time for a replacement vehicle and it will cost a small fortune to find one if they are left on their own without support.

• The following bulleted areas are some of the In-House managed disadvantages:
• Staff with basic transport skill-sets unable to deal with emergency situations such as breakdowns etc
• Staff sickness leaving the transport department exposed
• Poor systems to track and monitor bookings and suppliers
• Basic industry knowledge so not knowing who to book and also more importantly knowing who NOT to book
• Monitoring legal documents such as Operators Licence and Insurance and ensuring all supply partner documents are kept up to date on your system.
• Lack of Contingency planning and Emergency Response processes
• Many different payment terms putting your accounts department under pressure
• Should you need to source last minute replacement vehicles the price could be double the original price you were being charged.
• Stressful working environment
• Not knowing legal drivers hours legislation potentially exposing your clients and staff to breaches of the law by rogue operators or common brokers.

So take great care to weigh up all of the risks and benefits for both options, after all, there is a great deal at stake so don’t wait until disaster strikes.
Feel free to put us to the test and see what an Outsourced Managed solution can do for you. Get in touch with Coach Direct now.