Fleet Management Outsourcing: Driving Growth in a Data-Driven World To meet customers’ ever-increasing expectations, your company needs a simple way to analyze and optimize fleet performance in every aspect.

Fleet Management Outsourcing: Driving Growth in a Data-Driven World | Ryder © 2015

2Fleet Management Outsourcing: Driving Growth in a Data-Driven World | Ryder © 2015

T he family farm, so iconically American, may be a good deal less common than it once was,

but often the farms that remain have found innovative ways to survive. There’s a level of quality and care that can only be found in family farms and specialized producers of agricultural products, and that’s a fact that more consumers are coming to appreciate.

Apple Valley Creamery is not just surviving, but thriving due to both of those factors. The dairy, located in south-central Pennsylvania, just up the road from Gettysburg, prides itself on being the opposite of a factory farm. And, thanks to Ryder’s fleet management services, more customers in the state are gaining access to its large array of products.

Rather than expanding its acreage, as is the trend in dairy farming, Apple Valley Creamery is succeeding by expanding

its footprint, both in terms of its geographic reach and its product mix.

Eight years ago, its home-delivery business consisted of five customers and a minivan. Now, Apple Valley Creamery serves approximately 600 delivery customers per week—as well as thirty restaurants and small grocers.

From Minivan to Mini FleetAs they outgrew their minivan, Apple Valley Creamery purchased additional vehicles. “We only had two or three trucks,” says co-owner Don Everett, “but even so, things were getting neglected. Equipment issues add up—particularly with refrigerated trucks.” Even dealing with a small fleet quickly became a big distraction for Everett—until a colleague recommended Ryder.

Ryder’s ability to save money for its clients was a powerful incentive, but

it was Ryder’s customer service that really sealed the deal for Everett. “Ryder’s service has been exceptional,” he says. “They’ve built a great relationship with us.”

Minding the Details of a Flexible Fleet

Apple Valley Creamery’s primary product is milk, but they also deliver other grocery staples to their customers, some of which require very different handling than their signature glass bottles. Working with a third-party vendor, Apple Valley had designed a special multi-compartment box that accommodates frozen, refrigerated, and room-temperature goods, all kept in separate areas of the truck.

Everett was pleasantly surprised with Ryder’s willingness to simply move this box onto a Ryder chassis, and work with the same custom box manufacturer going forward to ensure the perfect match between box and truck. Meanwhile, Ryder created custom graphic design treatments for all the Apple Valley trucks, which now serve as a primary source of advertising for the company. “When we began the company,” Everett says, “the only way people knew about us was by coming to our farm stand. Now they see our trucks, which look really professional and very impressive. That’s been a nice addition to our business.”

Ready to GrowRyder has been a perfect fit for Apple Valley Creamery’s operation and will continue to work with the dairy company as their delivery service grows. The farm itself is deliberately staying family-sized, but they’re offering an ever-growing variety of goods by partnering with fellow farmers in their region. “Ryder’s ‘one-stop shop’ aspect of its services has been a tremendous help to us,” Everett says. “We may be a small fish, but they’ve spent a lot of time with us, helping us figure out our exact needs.”

Apple Valley Creamery: Delivery Makes The Difference

CASE STUDY

3Fleet Management Outsourcing: Driving Growth in a Data-Driven World | Ryder © 2015

F leet management has evolved rapidly in recent decades, as supply chains become

increasingly automated and more dependent on real-time information. These transformations have resulted in new expectations from consumers—many of whom are becoming accustomed to expedited, or even same-day, delivery of goods within growing urban congestion.

The challenge for smaller business owners and distributors is to make their fleets as efficient and responsive as possible—but these smaller operations often lack the in-house expertise to manage the multiple variables. Another option for smaller

and younger companies is to partner with a trusted fleet management provider with access to the data and infrastructure to meet rising demand.

Emerging Businesses and Outsourcing TransportationPrivate fleets are shrinking, and Chip White, Georgia Tech Professor, and Schneider National Chair in Transportation and Logistics at the H. Milton Stewart School of Industrial & Systems Engineering, has a theory about why. “If you’re in an emerging industry, you want focus on what you’re doing,” says White. To be competitive and hone their expertise, White believes more firms are outsourcing.

“If it were me,” he says, “managing a fleet isn’t the reason I got into business. And starting out, I wouldn’t have the components and information to make it happen. Transportation logistics is one of the first things I’d outsource.” He adds the caveat that businesses outsourcing these services would do well to maintain some degree of expertise internally. “Not to manage the fleet,” he says, “but to be able to evaluate the service being provided. You need someone who can understand the logistics data—that way you know if your service provider is performing up to their promises. It’s important to be an informed consumer.”

Data: The New Mom & PopBecause the Internet Age has made it possible for almost all small businesses to operate globally, the traditional small town/small business “mom and pop” model is giving way to new ways of knowing and serving customers. The massive amount of information available about customer behavior and purchasing trends is taking the place of the traditional “mom and pop” relationship.

“If you have a call at 9:00AM for a 2:00PM delivery,” says White, “and your fleet is already out, how do you take that info and respond to the request?” In the same way that “mom” or “pop” would expect a familiar local customer to make a specific purchase on a certain day, predictive analytics can use historic customer data to determine when orders and deliveries are likely to be made. By anticipating behavior, companies can be ready with inventory, and fleet management providers can be ready with transportation.

Eliminating the Problem of Being Small“In reality, the traditional mom and pop setups don’t necessarily control their fleet that well,” says White. “Not compared to bigger distributors. It’s becoming harder and harder to

Fleet Management Outsourcing: Driving Growth in a Data-Driven World

be competitive with internal fleet management, particularly with larger competitors knowing how to use data to manage routing and sequencing.” According to White, partnering with a fleet provider allows smaller firms to gain the advantages of a large fleet, allowing them to compete with much larger companies in their market space.

By partnering with a fleet provider, small companies’ deliveries become more cost effective. “If you’re a small business with a small fleet,” says White, “you’re moving your goods from a factory to a distribution center; you’ve got that head haul—but usually no back haul.” Larger transportation logistics providers, though, have the data and networks available to arrange a back haul on the return trip. “A transportation company carries both ways,” says White. “It’s more cost effective, and they can share the advantage with their clients in their pricing structure.”

The Road to Growth“We talk about the differences between small and large businesses but, often, businesses are only small because they’re new,” says White. While growth is not inevitable, White suggests, adopting the tactics and tools of larger operators can actually spur growth. This means that smaller operators can anticipate and efficiently respond to customer demand and manage the logistics of travel in data-driven ways. For emerging businesses, without the experience and infrastructure to do this for themselves, outsourcing to a fleet logistics provider can help them reach customers as efficiently as their larger competitors. The result is a lean, data-driven operation that combines the advantages of a small business with the capabilities of a global operation. ■

Additional ReadingIf you want to learn more about current trends in outsourcing, data and logistics, or other aspects of transportation and supply chain management, try these links below.

BUREAU OF TRANSPORTATION STATISTICS The Office of the Assistant Secretary for Research and Technology’s Bureau of Transportation Statistics. This arm of the US DOT offers data and statistics on all aspects of freight and transportation, including technical reports and links to publications and related links.

PLUNKETT RESEARCH, LTD This market research company offers data and interpretation of a wide array of business and transportation analytics. In addition to written analysis, they offer video tips and introductions to topics, and downloadable statistics, as well as memberships to gain access to more.

IS FLEET MANAGEMENT A CORE COMPETENCY? EXECUTIVE SUMMARY This white paper provides an overview of attitudes towards fleet management, including a pair of case studies outlining the potential of outsourcing when related skills are not part of a business’s core competencies.

Apple Valley CreameryA Roadmap to Fleet Management Success

When it comes to producing quality, cruelty-free dairy goods, nobody can beat the experts at Apple Valley Creamery. But the dairy was having trouble getting their fresh products to customers. Luckily, Ryder was there to show them the way.

Apple Valley Creamery:A family-owned farm and creamery

80 dairy cows yielding 6-7 gallons of milk daily

600 home-delivery customers

30 restaurants and grocery stores

Delivery needs quickly outgrew their single minivan

A private fleet of 3 trucks meant too many distracting breakdowns

GROCERIES

The BackgroundRather than waiting for consumers to come to them,Apple Valley decided to revitalize an old-fashioned idea—the milkman—making deliveries in and around East Berlin, PA.

Dead EndsProducing dairy goods and managing a fleet are two very different missions—and Apple Valley realized they needed help to meet growing demand.

The Open Road with RyderBy partnering with Ryder, Apple Valley could leave fleet management to experts, while continuing to focus on what they do best—producing delicious dairy products.

Multi-compartment trucks keep frozen goods icy, refrigerated goods cool, and other grocery items separate to ensure freshness and quality.

A Customized Fleet

Meticulously checking everything from engine and tires to cold compartments, Ryder makes sure Apple Valley Creamery’s trucks run as smoothly as their cream.

Maintained Expertly And Regularly

With easy access to vehicles and maintenance expertise, Ryder is positioned to meet Apple Valley’s needs as their customer base expands further across Pennsylvania.

Ready to Grow

Apple Valley Creamery knows dairy. Ryder knows delivery. By combining their quality products with Ryder’s ability to supply and

maintain a fleet customized to frozen and refrigerated goods,Apply Valley has found a perfect path to customer satisfaction.

MECHANIC

Apple Valley CreameryA Roadmap to Fleet Management Success

When it comes to producing quality, cruelty-free dairy goods, nobody can beat the experts at Apple Valley Creamery. But the dairy was having trouble getting their fresh products to customers. Luckily, Ryder was there to show them the way.

Apple Valley Creamery:A family-owned farm and creamery

80 dairy cows yielding 6-7 gallons of milk daily

600 home-delivery customers

30 restaurants and grocery stores

Delivery needs quickly outgrew their single minivan

A private fleet of 3 trucks meant too many distracting breakdowns

GROCERIES

The BackgroundRather than waiting for consumers to come to them,Apple Valley decided to revitalize an old-fashioned idea—the milkman—making deliveries in and around East Berlin, PA.

Dead EndsProducing dairy goods and managing a fleet are two very different missions—and Apple Valley realized they needed help to meet growing demand.

The Open Road with RyderBy partnering with Ryder, Apple Valley could leave fleet management to experts, while continuing to focus on what they do best—producing delicious dairy products.

Multi-compartment trucks keep frozen goods icy, refrigerated goods cool, and other grocery items separate to ensure freshness and quality.

A Customized Fleet

Meticulously checking everything from engine and tires to cold compartments, Ryder makes sure Apple Valley Creamery’s trucks run as smoothly as their cream.

Maintained Expertly And Regularly

With easy access to vehicles and maintenance expertise, Ryder is positioned to meet Apple Valley’s needs as their customer base expands further across Pennsylvania.

Ready to Grow

Apple Valley Creamery knows dairy. Ryder knows delivery. By combining their quality products with Ryder’s ability to supply and

maintain a fleet customized to frozen and refrigerated goods,Apply Valley has found a perfect path to customer satisfaction.

MECHANIC

Apple Valley CreameryA Roadmap to Fleet Management Success

When it comes to producing quality, cruelty-free dairy goods, nobody can beat the experts at Apple Valley Creamery. But the dairy was having trouble getting their fresh products to customers. Luckily, Ryder was there to show them the way.

Apple Valley Creamery:A family-owned farm and creamery

80 dairy cows yielding 6-7 gallons of milk daily

600 home-delivery customers

30 restaurants and grocery stores

Delivery needs quickly outgrew their single minivan

A private fleet of 3 trucks meant too many distracting breakdowns

GROCERIES

The BackgroundRather than waiting for consumers to come to them,Apple Valley decided to revitalize an old-fashioned idea—the milkman—making deliveries in and around East Berlin, PA.

Dead EndsProducing dairy goods and managing a fleet are two very different missions—and Apple Valley realized they needed help to meet growing demand.

The Open Road with RyderBy partnering with Ryder, Apple Valley could leave fleet management to experts, while continuing to focus on what they do best—producing delicious dairy products.

Multi-compartment trucks keep frozen goods icy, refrigerated goods cool, and other grocery items separate to ensure freshness and quality.

A Customized Fleet

Meticulously checking everything from engine and tires to cold compartments, Ryder makes sure Apple Valley Creamery’s trucks run as smoothly as their cream.

Maintained Expertly And Regularly

With easy access to vehicles and maintenance expertise, Ryder is positioned to meet Apple Valley’s needs as their customer base expands further across Pennsylvania.

Ready to Grow

Apple Valley Creamery knows dairy. Ryder knows delivery. By combining their quality products with Ryder’s ability to supply and

maintain a fleet customized to frozen and refrigerated goods,Apply Valley has found a perfect path to customer satisfaction.

MECHANIC

Apple Valley CreameryA Roadmap to Fleet Management Success

When it comes to producing quality, cruelty-free dairy goods, nobody can beat the experts at Apple Valley Creamery. But the dairy was having trouble getting their fresh products to customers. Luckily, Ryder was there to show them the way.

Apple Valley Creamery:A family-owned farm and creamery

80 dairy cows yielding 6-7 gallons of milk daily

600 home-delivery customers

30 restaurants and grocery stores

Delivery needs quickly outgrew their single minivan

A private fleet of 3 trucks meant too many distracting breakdowns

GROCERIES

The BackgroundRather than waiting for consumers to come to them,Apple Valley decided to revitalize an old-fashioned idea—the milkman—making deliveries in and around East Berlin, PA.

Dead EndsProducing dairy goods and managing a fleet are two very different missions—and Apple Valley realized they needed help to meet growing demand.

The Open Road with RyderBy partnering with Ryder, Apple Valley could leave fleet management to experts, while continuing to focus on what they do best—producing delicious dairy products.

Multi-compartment trucks keep frozen goods icy, refrigerated goods cool, and other grocery items separate to ensure freshness and quality.

A Customized Fleet

Meticulously checking everything from engine and tires to cold compartments, Ryder makes sure Apple Valley Creamery’s trucks run as smoothly as their cream.

Maintained Expertly And Regularly

With easy access to vehicles and maintenance expertise, Ryder is positioned to meet Apple Valley’s needs as their customer base expands further across Pennsylvania.

Ready to Grow

Apple Valley Creamery knows dairy. Ryder knows delivery. By combining their quality products with Ryder’s ability to supply and

maintain a fleet customized to frozen and refrigerated goods,Apply Valley has found a perfect path to customer satisfaction.

MECHANIC

Apple Valley CreameryA Roadmap to Fleet Management Success

When it comes to producing quality, cruelty-free dairy goods, nobody can beat the experts at Apple Valley Creamery. But the dairy was having trouble getting their fresh products to customers. Luckily, Ryder was there to show them the way.

Apple Valley Creamery:A family-owned farm and creamery

80 dairy cows yielding 6-7 gallons of milk daily

600 home-delivery customers

30 restaurants and grocery stores

Delivery needs quickly outgrew their single minivan

A private fleet of 3 trucks meant too many distracting breakdowns

GROCERIES

The BackgroundRather than waiting for consumers to come to them,Apple Valley decided to revitalize an old-fashioned idea—the milkman—making deliveries in and around East Berlin, PA.

Dead EndsProducing dairy goods and managing a fleet are two very different missions—and Apple Valley realized they needed help to meet growing demand.

The Open Road with RyderBy partnering with Ryder, Apple Valley could leave fleet management to experts, while continuing to focus on what they do best—producing delicious dairy products.

Multi-compartment trucks keep frozen goods icy, refrigerated goods cool, and other grocery items separate to ensure freshness and quality.

A Customized Fleet

Meticulously checking everything from engine and tires to cold compartments, Ryder makes sure Apple Valley Creamery’s trucks run as smoothly as their cream.

Maintained Expertly And Regularly

With easy access to vehicles and maintenance expertise, Ryder is positioned to meet Apple Valley’s needs as their customer base expands further across Pennsylvania.

Ready to Grow

Apple Valley Creamery knows dairy. Ryder knows delivery. By combining their quality products with Ryder’s ability to supply and

maintain a fleet customized to frozen and refrigerated goods,Apply Valley has found a perfect path to customer satisfaction.

MECHANIC

Apple Valley CreameryA Roadmap to Fleet Management Success

When it comes to producing quality, cruelty-free dairy goods, nobody can beat the experts at Apple Valley Creamery. But the dairy was having trouble getting their fresh products to customers. Luckily, Ryder was there to show them the way.

Apple Valley Creamery:A family-owned farm and creamery

80 dairy cows yielding 6-7 gallons of milk daily

600 home-delivery customers

30 restaurants and grocery stores

Delivery needs quickly outgrew their single minivan

A private fleet of 3 trucks meant too many distracting breakdowns

GROCERIES

The BackgroundRather than waiting for consumers to come to them,Apple Valley decided to revitalize an old-fashioned idea—the milkman—making deliveries in and around East Berlin, PA.

Dead EndsProducing dairy goods and managing a fleet are two very different missions—and Apple Valley realized they needed help to meet growing demand.

The Open Road with RyderBy partnering with Ryder, Apple Valley could leave fleet management to experts, while continuing to focus on what they do best—producing delicious dairy products.

Multi-compartment trucks keep frozen goods icy, refrigerated goods cool, and other grocery items separate to ensure freshness and quality.

A Customized Fleet

Meticulously checking everything from engine and tires to cold compartments, Ryder makes sure Apple Valley Creamery’s trucks run as smoothly as their cream.

Maintained Expertly And Regularly

With easy access to vehicles and maintenance expertise, Ryder is positioned to meet Apple Valley’s needs as their customer base expands further across Pennsylvania.

Ready to Grow

Apple Valley Creamery knows dairy. Ryder knows delivery. By combining their quality products with Ryder’s ability to supply and

maintain a fleet customized to frozen and refrigerated goods,Apply Valley has found a perfect path to customer satisfaction.

MECHANIC