What is a Private Carrier?
A private carrier is used to transport goods from one point to another exclusively for a seller or company. It is also referred to as a company that only transports its goods. Trucks are one of the most common examples of private carriers. However, particular rail, ship and airway carriers have also been used as private carriers for some companies.
Significance of Private Carrier in an E-commerce Shipping and Delivery
A private carrier adds a sense of personalization to shipping while providing companies with benefits such as better safety and tailored resolutions during unforeseen order spikes.
- Safety: Since private carriers carry products of single sellers, fewer people are involved in transporting, causing less damage.
- Quick resolutions: Companies facing unforeseen order spikes can dispatch products quickly with private carriers. These companies are not required to find and wait for a middle-mile operator to receive and ship their products.
Prerequisites of Private Carrier and How It Works
Owning a private carrier might be subject to a considerable upfront investment. Even though there is no such prerequisite for holding a private carrier, a company must always identify the demand and perform a cost analysis before committing to buy a private carrier.
Using a private carrier is very similar to working with a partner shipping company, except a third-party delivery partner is negated.
- Order procurement: A seller or a manufacturer receives an order, preferably in bulk.
- Disbursal: The products are packaged and dispatched in a private carrier.
Use Case with Private Carrier
A manufacturer in Davao City receives orders of 3000, 7000 and 1000 units of trimmers from three sellers in Manila City. As a result, the manufacturer rents out a storage unit in Manila City and delivers the products from Davao city through their private carrier to the rented warehouse for last-mile delivery.