Fixed Ops Magazine - 2022 Vol19 04 - 55

SOLUTION: ENTREPRENEURSHIP
Companies that dispatch professional 1099 owner-operators,
however, are largely immune to these problems
because owner-operators have more skin in the
game than any other W2 driver, and they accept ancillary
dealer work in order to be compliant and fully
integrated with dealer operations. Their livelihood is
squarely dependent on providing professional service
to the dealership, and they know there is competition
for the role they play. Owner-operators are motivated
to keep their vehicles operating for income, so they are
eager to show-up and work every day. They drive their
commercial vehicles to the dealership warehouse every
morning then go straight home with their vans after
their last delivery. These owner-operators can also
be chosen based on their residential proximity to their
appointed delivery routes. This is a superior staging
advantage over dealer-employed drivers, who must
commute to the dealership to pick-up the dealer's vehicle
and commute again home after returning it. The
owner-operator model also benefits from contractors
taking personal pride in the appearance and maintenance
of their vehicle, which is not wrapped with any
signage. For legal protection, they are incorporated as
their own business entity and carry commercial auto,
liability and cargo insurance as well. Their dispatching
organization also provides high-dollar business liability
insurance as a further cushion to all parties concerned.
The right owner-operator delivery partner can
provide superior service reliability and consistency over
current internal dealership delivery systems, and when
that service bar is raised, wholesale parts managers can
add a few percentage points more of profit to each part
because they are now more reliable and consistent at
delivering on-time than their competition.
HAVING FLEXIBILITY AND CONTROL
OVER YOUR DESTINY
Outsourcing also enables the ease of adding or subtracting
drivers in real-time when business conditions
change or seasonality dictates. Dealers are happy
when they hear that service agreements for owner-operator
drivers run just month-to-month, with no longterm
commitments. Conversely, paring employees with
JULY AUGUST 2022 || FIXED OPS MAGAZINE
55
Fixed Ops Magazine - 2022 Vol19 04

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2022 Vol19 04
