What are Carrier Assets?
Carrier assets are the properties or assets owned by the e-commerce company to transport goods. Trucks, trolleys, tractors, warehouses, and goods carriers are all types of carrier assets owned by the logistics for the transportation of e-commerce products. As these are business assets, the logistics company doesn’t need to depend on third-party providers and may deliver restriction-free services.
Significance of Carrier Assets in E-commerce Logistics
Customers will be more satisfied if businesses own carriers’ assets since they would contact the service provider directly. Since you frequently utilize the same asset carrier, there is often some familiarity and built-in trust. E-commerce logistics can enhance their business by reaching more remote places. The following are the additional advantages of carrier assets:
- One point of contact for streamlined communication
- Improved customer satisfaction
- Some products require refrigerated containers, which logistics providers can adopt with carrier assets.
- Increased flexibility
- You can make last-minute changes based on customer requests.
- Quality and service standards are maintained throughout the business journey.
- No need to pay brokerages.
Pre-requisites of Carrier Assets and How It Works
For the transportation of goods, logistics companies use third-party services. However, with carrier assets, the business purchases all the vehicles and cargo trucks and hires drivers; these owned items become carrier assets. The following are the prerequisites of carrier assets:
- Own warehouse and parking areas
- Total operating network
- Own cargo vehicles and drivers and ground staff to handle shipments
- Dedicated managing team to manage carrier assets
- The budget is to be watched carefully and required to have maintenance teams for vehicles
Use Case With Carrier Assets
Carrier assets provide e-commerce logistics with the freedom to expand business areas. Assume a seller receives orders from remote areas with poor road conditions where third-party vehicles deny transportation. So, e-commerce logistics buys trucks and expands the business to those remote places, and generates more revenue. And trucks are now carrier assets that are well maintained monthly for healthy transportation.