Fleet managers are always looking for ways to use trucks optimally and improve efficiency in their commercial vehicle operations. Hence, they plan routes efficiently to ensure their vehicles aren’t burning costly fuel when they could be on the road moving goods. However, even with route planning, the trucks usually return empty after a delivery. Some fleet operators usually consider backhauling or backloading to maximise productivity on the road and ensure trucks aren’t empty for return journeys.
Backloading describes the act of planning for roundtrip hauls to use the spare space on a truck. It also involves planning routes to ensure goods are transported on every leg of the truck journey to improve productivity. Backloading is beneficial in logistics operations since it allows the company to maximise vehicle space and cut down on unnecessary fuel use.
Backhauling can be internal or external. If the truck carries the company’s products or goods on the return trip, it is internal backhauling. For instance, a truck can deliver finished products to a warehouse and pick up raw materials on the journey back to the factory. External backhauling is when a fleet transports third-party freight on its return journey. Most fleet operators do external backhauling since aligning the routes to deliveries in the area is easier. Fleet managers communicate with other carriers in the routes and plan to move the goods ahead of the delivery. Most external backloading opportunities are on a hire basis, and fleets take up the jobs to lower operating costs and increase revenue.
What are the Benefits of Backloading?
Some of the advantages of backloading include:
- Cost savings: A half-empty truck on the road costs the fleet company money since it spends on fuel and driver hours without getting the maximum return. With backloading, the logistics company can get back some of the money. Besides, fleet operators save money if the truck carries goods on the return trip instead of driving around empty.
- Better productivity: Every fleet company strives to improve efficiency and productivity. That means being able to move more goods is a priority. Backhauling improves operational efficiency since the routes are optimised for return journeys, maximising equipment and labour utilisation.
- Better customer satisfaction: With backloading, fleet managers plan transport routes and can predict precise delivery times. Since the trucks must pick up goods for the return trip, they provide accurate arrival times and reduced delivery times to meet expectations. Hence, customers will not experience delays.
How to Improve Fleet Operations with Backloading
Backloading can improve efficiency in fleet operations and the logistics industry, increasing profitability. For instance, backloading reduces lead time on deliveries, positively impacting the business and its customers. With route planning and optimisation, fleets can make multiple deliveries on time since the fleet manager helps drivers avoid traffic and other elements that can cause delays. Besides, with real-time GPS fleet tracking, managers can secure more backloading opportunities in their transportation routes.
Since backloading helps logistics companies increase revenue, fleet managers must keep track of the trucks on the road and available space. Identifying the trucks available for backloading opens up more possibilities for adding goods on either side of the journey.
Do Backloading Services Reduce Costs?
In the logistics industry, transporting goods for multiple companies at the same time splits the costs since the companies share fleet operations costs. Besides, picking up a load on the truck’s route saves the time required for sending another truck. Transportation and logistics companies should find ways to use backloading to increase profits.
This content is provided for informational purposes only and is not meant to be an endorsement or representation by FleetGO.com or any other party. This information may contain inaccuracies or typographical errors, despite our efforts to ensure accuracy. FleetGO.com accepts no responsibility or liability for any errors or omissions, and is not responsible for the contents of any linked website or any link contained in a linked website. Please refer to our full disclaimer for more details.