The decision of owning a fleet versus outsourcing transportation and distribution is a very important decision for any company. Cost and efficiency are two major factors that influence this decision. In this paper, we simulate multiple scenarios in which these two factors are tested for optimality in both captive and outsourced fleet.

Why read this whitepaper?

The objective of this white paper is to help businesses make smart and informed decisions on their fleet requirement for the all-mile movement.

How did we do this study?

We start with understanding the impact of the increase in the number of orders on distance traveled and journey time, and eventually, the cost of operations. This activity is repeated for outsourced and in-house fleet operating models.

The following metrics were explored with respect to an increase in the number of orders/day:

  • Change in number of miles per order (for in-house)

  • Operational costs for outsourced and captive fleet models

  • Break even point and further extrapolation.

New York Metropolitan area has been chosen for this study, implying, the geographic and cost data for various entities of the New York metro area has been factored into the calculations to make the model relatable with various retail, 3PL/4PL and E-commerce businesses that operate in the area.

Since the business models and operational processes are different for in-house and outsourced transportation, different approaches have been used to perform the study. A combination of real-time constraints, on-ground data, research data and assumptions have been used to calculate the total transport cost.

Download Whitepaper

Latest Whitepapers

  • The Logistics of Furniture Retail

    Whitepaper

    The Logistics of Furniture Retail

  • Holiday Season Trends That Will Shape the Retail Supply Chain Industry

    Whitepaper

    Holiday Season Trends That Will Shape the Retail Supply Chain Industry

  • A Look at the Future of Grocery Retail in North America

    Whitepaper

    A Look at the Future of Grocery Retail in North America

  • A Comprehensive Guide to Effective Returns Management

    Whitepaper

    A Comprehensive Guide to Effective Returns Management

  • Buying vs. Building Logistics Software: How to Choose?

    Whitepaper

    Buying vs. Building Logistics Software: How to Choose?

  • Evolution of Healthcare Supply Chain and the Importance of Logistics Tech

    Whitepaper

    Evolution of Healthcare Supply Chain and the Importance of Logistics Tech

  • The Future is Now: Why Transportation Management Systems are Indispensable to Growth in Logistics

    Whitepaper

    The Future is Now: Why Transportation Management Systems are Indispensable to Growth in Logistics

  • Last-mile Delivery: Finding the Right Balance

    Whitepaper

    Last-mile Delivery: Finding the Right Balance

  • Hope Comes In the Form of AI for Big-Box Stores

    Whitepaper

    Hope Comes In the Form of AI for Big-Box Stores

  • Transform your wholesale distribution supply chain with logistics tech

    Whitepaper

    Transform your wholesale distribution supply chain with logistics tech

  • How to Optimize Your Business Using Territory Planning

    Whitepaper

    How to Optimize Your Business Using Territory Planning

  • Optimize Cannabis Delivery Operations

    Whitepaper

    Optimize Cannabis Delivery Operations

  • Digital Twins — Transforming the Supply Chain

    Whitepaper

    Digital Twins — Transforming the Supply Chain

  • Micro-Fulfillment Centers are Shaping Up the Future of E-Grocery Deliveries

    Whitepaper

    Micro-Fulfillment Centers are Shaping Up the Future of E-Grocery Deliveries

  • The Final Frontier: Designing an optimal cold chain network to distribute the COVID-19 Vaccine

    Whitepaper

    The Final Frontier: Designing an optimal cold chain network to distribute the COVID-19 Vaccine

  • How to Keep the Promise of Same-Day Grocery Delivery Amidst COVID-19

    Whitepaper

    How to Keep the Promise of Same-Day Grocery Delivery Amidst COVID-19

  • Post-Pandemic Sustainability: What lies ahead of the Supply Chain Industry

    Whitepaper

    Post-Pandemic Sustainability: What lies ahead of the Supply Chain Industry

  • The Role of AI-powered Logistics in E-commerce 4.0

    Whitepaper

    The Role of AI-powered Logistics in E-commerce 4.0

  • COVID-19 and Supply Chain: Disruptions and Actions

    Whitepaper

    COVID-19 and Supply Chain: Disruptions and Actions

  • Artificial Intelligence: The solution for supply chain problems in the Engineering Industry

    Whitepaper

    Artificial Intelligence: The solution for supply chain problems in the Engineering Industry

  • How Locus automated logistics operations for Indonesia’s leading E-commerce player

    Whitepaper

    How Locus automated logistics operations for Indonesia’s leading E-commerce player

  • How Locus is managing customer-preferred time windows for its clients

    Whitepaper

    How Locus is managing customer-preferred time windows for its clients

  • Multi-Echelon SupplyChain Inventory Optimization – A mathematical perspective

    Whitepaper

    Multi-Echelon SupplyChain Inventory Optimization – A mathematical perspective

  • How Locus filled the gaps in the supply chain of Southeast Asia’s largest e-commerce player

    Whitepaper

    How Locus filled the gaps in the supply chain of Southeast Asia’s largest e-commerce player

  • FMCG Insight Report II

    Whitepaper

    FMCG Insight Report II

  • The Future Of Sales Transformation : Dynamic PJP

    Whitepaper

    The Future Of Sales Transformation : Dynamic PJP

  • Locus’ Guide To Omnichannel Fulfilment

    Whitepaper

    Locus’ Guide To Omnichannel Fulfilment

  • FMCG Sales Beat - Insight Report

    Whitepaper

    FMCG Sales Beat - Insight Report

  • Why Businesses need Route Optimization?

    Whitepaper

    Why Businesses need Route Optimization?

Know More About LOCUS Services?

Schedule a demo with one of our industry experts

Schedule a meeting with Locus

How can Locus help manage your logistics?

  • Locus’ proprietary geocoding engine converts the fuzziest of the addresses into precise geographical coordinates thereby helping your on-ground executives locate addresses easily.
  • Digitize all your operational variables such as fleets, delivery persons etc. to come up with the best route plan every day.
  • Track your orders in real-time with the Locus Live Dashboard. Locus’ all-mile delivery app Locus On The Road (LOTR) helps delivery partners process orders.
  • Visualize and tweak your scheduled plans via three key metrics— geography, time, & vehicle (fleet)—with a birds-eye view of your entire operations.
  • Build your own reports and analyze important parameters that you need to make key decisions.

Join Industry Leaders:

68m+ miles

Reduction in distance traveled

12m+ kgs

Reduction in GHG emissions

$330m+

Savings in logistics costs
brand logos
strip-left-pattern
strip-right-pattern