MILEMARKER BLOG
Fleet Strategy Delivered 35% Lower Trailer Costs
A national retailer reduced operating costs and improved efficiency by replacing short-term surge rentals with a smarter trailer strategy.
OVERVIEW
A national retailer partnered with Milestone to improve trailer availability during peak demand while reducing operating costs. A strategic evaluation uncovered opportunities to improve efficiency, lower transportation costs and simplify fleet management.
CHALLENGE
- Support hard-to-serve locations during periods of surge demand.
- Reduce total operating costs across the trailer network.
- Improve operational efficiency while maintaining trailer availability.
ANALYSIS
Milestone evaluated the customer’s existing trailer program to identify opportunities for improvement.
| Focus Area | Key Finding |
|---|---|
| Rental Activity | Short-term monthly rentals created frequent trailer pickups and returns that increased transportation costs. |
| Operating Costs | Driver time, fuel, tire wear, vendor repairs and rebills significantly increased the total cost of the rental program. |
| Network Alignment | Provider locations often required longer trailer moves, creating unnecessary expense and reducing efficiency. |
SOLUTION
Milestone recommended a fleet strategy centered on annual trailer rentals and network alignment.
- Replace monthly surge rentals with annual trailer rentals to reduce repeated trailer turns.
- Position trailers closer to customer operations to reduce transportation-related costs.
- Lower total operating costs by reducing driver time, fuel consumption, tire wear and vendor repair rebills.
- Simplify trailer management with fewer rental transactions and one provider.
RESULTS
The strategy produced measurable financial and operational improvements.
KEY TAKEAWAY
The results demonstrated that looking beyond the monthly rental rate can uncover significant opportunities to optimize trailer strategy and reduce fleet costs.
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