What is meant by subcontractor?

What is a subcontractor?

A subcontractor to transport companies is a carrier that signs a contract to perform part or all of a transport company’s contracts. A subcontractor can use either its own vehicles / equipment or use those of their contractor. Transport software like a fleet management system (FMS) and asset tracking can help optimise the cooperation with a subcontractor and make it more transparent.

Benefits of asset tracking when working with a subcontractor

Carriers that rely on the services of a subcontractor will experience multiple benefits of asset tracking. Assets refer to the vehicles but also to other equipment items, such as trailers, trolleys, containers or swap bodies. Asset tracking tools allows carriers to follow the position of their equipment in real time and, consequently, prevent abuse or theft by a subcontractor.

How does asset tracking work?

The asset tracking tools send direct signals from the trailer, trolley or other equipment to the back office, thus ensuring that the back office team can monitor the assets. Another option is to send signals from the equipment to the truck. As soon as the signal disappears, an alarm will be triggered in the back office. In this way, the safety of the assets is guaranteed.

Benefits of fleet management when working with a subcontractor

fleet management system helps increase the transparency when working together with a subcontractor. The subcontractor’s drivers have an on-board computer in their truck where they can enter data and receive information and instructions from the back office. Moreover, FMS offers ample possibilities to simplify the logistics and invoicing processes for carriers working with a subcontractor: it provides trip and hour registration, trip planning and tracking & tracing; helps monitor the driving style and records the fuel consumption. In addition to FMS, trailer management helps raise the transparency in a carrier – subcontractor partnership as well.

Transparancy in the relation with the subcontractor

When using a fleet management system, there is no discussion about aspects like the number of kilometres driven or the time when a delivery is delivered at the customer’s site. In this way, it improves the collaboration between the carrier and the subcontractor.