Special Delivery: Benefits of Outsourcing Live Production Transportation
Live production transportation encompasses all needs for vertically integrated poultry companies. For many years those integrators have managed live transportation and bird growout with their employees and assets. Then, integrators started outsourcing bird development to contracted growers, because the benefits outweighed the risks. Even though it’s a sensitive part of the business, trusting growout experts is a better way to run the business. Now, more integrators are choosing to outsource their private fleet for the same reasons. Here are three reasons we hear often:
1. Reduce time spent managing and operating a fleet
Operating a private fleet requires an immense amount of time, capital, and know-how. It also competes with resources that should be allocated to the birds. An outsourced provider assumes fleet responsibilities such as driver hiring and training, which can be overwhelming to businesses. Account managers are also on-site to oversee drivers, so integrators can focus on greater return opportunities within growout.
2. Minimize risk exposure to control costs
A private fleet’s management responsibilities and its liability risk are significantly increasing. Transportation represents 4%* of total live production costs in the integrated business model, yet its challenges exceed its worth in time and capital. A single safety event can cause serious and costly repercussions. One major benefit of an outsourced provider is that it absorbs transportation risks from the company. Integrators have more peace of mind knowing they’re protected from the unexpected.
3. Enhance safety technology and training procedures
Especially when hauling live eggs or birds, driving on rural roads can be a difficult task. Many companies don’t have the necessary time and resources to implement safety technology. Well-established outsourced providers already have cutting-edge safety technology in place, including forward-facing cameras, rollover and load stability, forward-collision warning systems, and traction loss. But, technology is only as good as its user, so training resources are available to help protect drivers and the birds.
Being on someone’s farm is as sensitive as being in their house. An outsourced provider needs to understand that sentiment and reflect it in its service. When it comes to transportation, it pays to choose an expert and only one provider has ag-specific operations. J.B. Hunt Ag offers a private fleet experience and delivers feed, live haul, and bulk commodities in the poultry, dairy, and hog industries. We have a team of ag experts who understand your business and the demands that come with it. Contact us today – agservices@jbhunt.com or +1 (888) 668-6160 to learn more about our unique role in the industry and how we can help you focus more on the core competency. *Based on J.B. Hunt estimates