The Secret for Private Fleets for a Fast, Seamless Shift to Electric Vehicles and Sustainable Transportation

Private fleets face mounting pressures from many directions to reduce their carbon footprint, become more sustainable and make a firm, measurable commitment to the environment.

That fact hasn’t changed in recent months. Over 75% of CFOs expect to maintain or increase sustainability-focused investments even after the recent U.S. election, according to survey results from accounting and advisory firm BDO.

The pressure to chart a path toward sustainability remains high and it’s a move private fleets cannot afford to ignore or delay.

Internal and External Groups Demand Carbon Reduction

Pressure to reduce greenhouse gases (GHG) remains a high priority within corporations and the transportation industry. Many companies with aggressive goals for reaching net zero carbon output remain committed. TA Dedicated’s own sustainability goal of reducing fleetwide GHG Scope 1 CO2 emissions by 5% by 2026, as well as other environmental impact targets, remain firmly in place.

Furthermore, shippers face pressure to fulfill sustainability goals from their own C-suite. According to the BDO survey, the key benefits highlighted by CFOs from sustainability initiatives include increased innovation and new business opportunities, cited by 37% of respondents, increased revenue (36%), access to favorable financing or investment opportunities (34%), cost savings (30%), and enhanced customer loyalty (30%).

Companies face pressure from their customers — consumers themselves, to demonstrate sustainable practices. PwC’s 2024 Trust Survey found that 41% of consumers say it’s very important for companies to disclose their environmental impact, such as making a net zero commitment.

Employees feel the same, PwC says 45% of workers say it’s very important for their employers to disclose their environmental commitments and impact.

Battery Electric Vehicles Offer New Options for Private Fleet Operators

Many shippers and private fleet operators are considering the introduction of battery electric vehicles (BEVs) as a new, impactful part of their sustainability strategy.

The selection of applications continues to expand and BEVs are being used everywhere from the first mile to the last. The technology for increasing range and charging faster also continues to evolve.

Nevertheless BEV adoption remains low for most private fleets for a number of reasons.

Five Reasons Private Fleets Resist Going Electric

1. Costs – Substantial investments in BEV equipment are needed. Despite the known payback periods for fuel savings compared to traditional diesel trucks, the high initial costs repel many private fleets.
2. Learning Curve – Mastering BEV technology, researching options, planning, and establishing new vendor contacts is time-consuming.
3. Resistance to Change – Private fleets have spent years creating the processes and infrastructure to maintain, manage and fuel diesel fleets. It’s natural for them to resist entering a field where they have no internal expertise and the technology is complex.
4. Waiting for Technology to Evolve – A mindset that the next big improvement is just around the corner prevents fleets from benefiting from BEV technology that will deliver outstanding carbon reduction and cost savings now.
5. Proof of Concept – Resistance from leadership demanding assurances of return can be countered through a growing body of research and reinforced through early and frequent reporting, once BEV programs are implemented.

Outsourcing Fleet Operations Sparks Change Faster

Dedicated fleet providers that can take over entire transportation programs for companies, or portions of them, provide the advantage of experience when it comes to BEVs and sustainability overall. TA Dedicated manages the details of creating and managing fleets for hundreds of leading companies of all sizes and from every sector.

Dedicated fleet providers can bring deep understanding and fresh perspective to BEV fleets in the context of a company’s complete logistics picture. At a strategic planning level, TA Dedicated provides industry best practices for load and route consolidation, mode selection, network configuration, driver performance, and software integration. Our experienced guidance on vehicle and fueling tradeoffs helps keep sustainability efforts on track and on budget.

BEV deployment is just one of many strategies for reducing greenhouse gas emissions and increasing fuel economy. As experts at managing hybrid fleets, TA Dedicated is positioned to help map routes for greener fueling or charging stops; reduce trips and travel time; and design comprehensive emissions measurement and reporting programs.

A dedicated fleet provider’s job is to be engrossed in details like these so companies don’t have to be. In a field as dynamic as BEV technology, it is a competitive advantage to have a partner whose sole job is to know the latest and procure you the best in every aspect of your transportation.

Companies are at different stages in their sustainability programs. TA Dedicated leverages past engagements with shippers at every stage of the spectrum to help companies make improvements based on where they are. TA Dedicated is also a member of the ACT Fleet Forum, a network of leading fleet operators and early adopter fleets transitioning to clean vehicle technologies. The group, which includes some of the largest fleets in America, convenes regularly to explore the latest industry trends, data and best practices.

Strategies for companies just starting to grow green often focus on boosting MPG through aerodynamic equipment like roof fairings, wheel covers, eco mud flaps and automatic tire inflators. Augmentations for improving greenhouse gas emissions may be another starter strategy for private fleets. That can include switching to biodiesel or upgrading to tractors with engines featuring the latest exhaust systems.

At the more advanced end of the spectrum, TA Dedicated fleets employ everything from electric heavy-duty class 8 trucks to box trucks and sprinter vans. TA Dedicated is involved with researching units and surveying locations to best configure charging stations and optimize BEV operations. Our ability to confidently liaise with power companies and facility managers ensures a smooth transition that extends all the way to executing the program and continuously fine-tuning operations.

TA Dedicated’s Recent BEV Implementation Success Story

In November 2023, TA Dedicated launched a fleet of electric yard trucks for a major American automobile manufacturer. The yard BEVs manufactured by an American truck manufacturer, Orange EV, were deployed at the auto maker’s three busiest parts distribution centers in the U.S.

After four months’ implementation, the vehicles prevented 270 metric tons of CO2 from being released into the atmosphere.

As one of the auto manufacturer’s largest dedicated fleet providers, TA Dedicated led the BEV program from its inception and continues its day-to-day management. The early and ongoing success demonstrates the merit of the dedicated model which eliminated the learning curve for the car company and helped them to both make their case and definitively prove their case within their organization.

TA Dedicated researched leading BEV models and amperage at each facility, coordinated with electrical companies and facility managers, then managed the onsite buildout and infrastructure procurement. Testing vehicles and training drivers also fell to TA Dedicated.

Importantly, TA Dedicated has measured performance and documented success throughout. The ability to report tons of greenhouse gases eliminated and thousands of dollars saved in fuel garnered support from the company’s C-Suite for future BEV initiatives.

By outsourcing their BEV program, this private fleet shifts the burden of tracking the performance of their electric vehicles to TA Dedicated. Carbon elimination, fuel savings, energy efficiency and uptime must be closely monitored to help shippers optimize operations and ensure they’re maximizing their ROI. Tracking adds to a long list of functions that, when performed by dedicated fleet providers, frees company time and resources to focus on core competencies.

More Leaders and Early Adopters Emerge to Take a Leadership Role with EV

The success of this leading automobile manufacturer’s yard BEV program and the partnership of TA Dedicated and Orange EV are part of a growing body of BEV success stories today.

The North American Council for Freight Efficiency’s Run on Less program, now in its fifth year, highlights the achievements of leading shippers and transportation providers in implementing a wide swath of technologies to improve fuel economy and reduce greenhouse gas emissions.

The 2023 program teased early successes of Orange EV yard trucks used by OK Produce, a major produce distributor in California. The program also highlighted success stories from other truck classes. In the smaller truck classes, Run on Less featured a large-scale urban application of electric box trucks, or Class 2B BEVs, by Frito-Lay in Queens, New York.

Heavy-duty BEV Fleets now provide Class 8 regional haulers, which push the boundaries in the distance on their distribution routes in states like California, where they have some of the most stringent emissions standards in the country.

Class 8 regional haulers are the next frontier for TA Dedicated’s fleet serving the previously mentioned auto manufacturer. TA Dedicated is currently evaluating the implementation of a regional BEV program to serve the auto manufacturer’s facilities in Texas. The program is the latest evolution in a long history of initiatives promoting fuel economy and emission reduction for the car maker.

Private Fleets Can Still Gain the Early Adopter Advantage in BEV

The ability for private fleets to outsource all or a portion of their transportation to a dedicated fleet provider puts a high-performing sustainability program within reach for many who have been reluctant in the past.

Along with the increasing imperative for shippers to act, there are a growing number of options that make going green easier, more affordable and advantageous than ever.

Talk to the TA Dedicated team about a plan that helps you take your fleet to the next level of sustainability.