How a Contracted Delivery Model Improved an Auto Parts Distributor's Deliveries in Virginia and Maryland
Overview
A well-known automotive product distributor had been relying on a courier vendor for its multiple same-day delivery routes to deliver original equipment (OE) parts to auto shops in the Maryland and Virginia markets. However, they encountered issues with poor communication, inconsistent driver availability and quality, and unreliable service.
This was a factor in their decision to consider switching to a W-2 employee model for their fleet. Excel Courier (Excel) highlighted key factors to consider, including risk mitigation and labor management, when evaluating the differences between a W-2 model and an independent contractor approach.
Challenge
The OE distributor client faced significant obstacles in securing and retaining qualified drivers through their existing courier service, especially for a problematic route that was consistently behind schedule. They needed a new delivery partner to supplement and augment their fleet for multiple same-day auto part delivery routes and shuttle drivers.
They were looking for a solution to improve efficiency, ensure high-quality drivers, and streamline their operations to improve technician productivity without taking on additional liabilities.
Solution
Recognizing the client's most challenging route, we began by deploying a highly qualified and experienced driver to augment their existing fleet. This strategic placement ensured immediate improvement on the critical route. Following this success, we secured an additional route and assigned another pre-vetted driver. This phased integration allowed us to understand the client's operations in-depth, paving the way for a comprehensive fleet expansion and driver training program development.
Over a five-year period, this collaborative approach yielded a dedicated team exceeding 50 drivers. Today, a fleet of over 80 dedicated drivers exclusively service the auto part distributor's local deliveries.
Key Benefits:
- Consistency: Quick response times, optimized routing, and improved delivery performance.
- Quality Drivers: Only skilled and reliable drivers were assigned to maintain a high standard of service.
- Risk Mitigation: Eliminated liabilities, annual insurance premiums, and overhead expenses.
- Operational Support: Dedicated client account managers, driver vendor teams, and field coordinators were assigned to ensure smooth operations and seamless communication.
To guarantee consistently high service levels, dedicated internal Excel employees were assigned to monitor delivery activity and deployed on-site coordinators to ensure routes left the warehouse on time. Finally, to proactively address any potential concerns, a monthly business service call was instituted, creating a collaborative environment for addressing client feedback beyond the scope of daily operations.
By leveraging Excel Courier's independent contractor model, the client could benefit from a more efficient and flexible workforce without the risks associated with W-2 employees. The client mitigated their risk by having Excel Courier absorb the liability and provide access to specialized industry insurance coverage and legal teams to navigate the complexities of W-2 vs. independent contractors.
Results
By partnering with Excel Courier and leveraging their independent contractor model, the national auto part distributor improved its auto parts delivery operations' quality, efficiency, and reliability. Excel Courier's specialized expertise, strong driver network, and operational support helped the client overcome previous challenges and achieve streamlined logistics for their business.
Key Learnings
This case study highlights the success of an independent contractor model for automotive parts delivery and showcases the benefits of working with a specialized courier service provider experienced in the auto parts distribution industry. By understanding and addressing the specific needs and challenges, Excel Courier provided a customized and transitioned solution that optimized efficiency, enhanced quality, and mitigated risks in the complex auto parts logistics landscape.
The Excel Team: Oct 3, 2024 5:15:00 AM
The Excel Team