In today’s fast-paced business world, External Transport Manager plays a crucial role in the success of many companies, especially those in logistics, distribution, or sectors that rely on fleet management. A manager provides the necessary expertise to ensure smooth operations without the need for a full-time, in-house staff member. But how much does it cost to hire one, and what exactly do they do? This guide answers these questions and more, helping businesses navigate the logistics of outsourcing transport management.
What is an External Transport Manager?
An external transport manager is a professional or consultancy firm hired on a contract basis to handle the transportation needs of a business. These professionals specialize in fleet management, regulatory compliance, route optimization, and logistics planning. Unlike a full-time, in-house transport manager, an external transport manager typically works for multiple clients, offering flexibility and cost-efficiency.
For small to medium-sized businesses, hiring an external transport manager can be an ideal solution. Since they don’t require a full-time position, companies can access expert knowledge while saving on salary and overhead costs.
Freelance transport manager: Key Responsibilities
- Fleet Management: Ensuring vehicles are maintained, insured, and meet regulatory standards.
- Regulatory Compliance: Ensuring the business adheres to transport laws, including driver regulations, safety checks, and licensing.
- Route Optimization: Using advanced tools to plan the most efficient routes, saving fuel and reducing delivery times.
- Cost Management: Negotiating with suppliers and improving operational efficiencies to reduce transportation costs.
- Driver Management: Overseeing driver schedules, training, and regulatory compliance to ensure safety and efficiency.
External transport manager Cost
The salary of an external transport manager varies depending on factors like experience, expertise, and the nature of the engagement. In the UK, external transport managers can earn between £30,000 and £80,000 per year for full-time roles. Freelance transport managers or consultants typically charge hourly or daily rates.
Some professionals may charge between £250 and £1,000+ per vehicle per month, depending on the complexity and scale of the project. Smaller fleets may incur lower costs, while larger companies or those with specialized needs (like hazardous goods transport) can expect higher fees.
External transport manager rates
Rates depend on several factors, such as the type of service and the number of vehicles managed. Here are typical pricing structures:
- Hourly Rates: Freelance transport managers may charge between £40 and £150 per hour.
- Daily Rates: Some managers charge a daily fee ranging from £300 to £1,200.
- Monthly Rates: For larger operations, the external transport manager cost may be calculated based on a monthly retainer, with prices ranging from £500 to £2,500 or more, depending on the fleet size and level of service required.
How many hours should an external transport manager work?
The number of hours a manager works varies based on the client’s needs. Some businesses may require only a few hours of support per week, while others may need more frequent involvement. Typically, a manager will work between 4 to 20 hours per week for smaller fleets. Larger companies may require more time.
For smaller businesses, the role may involve administrative tasks, compliance checks, and occasional driver management. Larger companies may require daily oversight, fleet management, and detailed performance tracking.
External Transport Manager Contract: What to Expect
When hiring a manager, businesses should ensure they have a clear contract that outlines the scope of services, payment terms, and expected deliverables. This is especially important for freelance transport managers or consultants.
Common elements of this contract include:
- Duration: Whether it’s a fixed-term project or an ongoing agreement.
- Services Provided: A detailed list of the tasks and responsibilities.
- Payment Terms: Hourly rates, daily fees, or monthly retainers.
- Termination Clauses: Conditions under which either party can terminate the agreement.
Clear agreements ensure that both parties understand their roles, as well as the expected hours and outcomes. An example template is available here.
Why Hire an External operator?
Outsourcing transportation management offers several advantages:
- Expertise: External transport managers bring specialized knowledge in logistics, regulatory compliance, and cost management.
- Cost-Efficiency: Hiring an external manager can be more affordable than employing a full-time, in-house manager, especially for small and medium-sized businesses.
- Flexibility: Businesses can adjust the level of engagement based on their needs, without long-term commitments.
- Compliance: External managers help ensure that businesses meet all relevant regulations, reducing the risk of fines or penalties.
FAQs
He is a third-party professional hired to manage a business’s transportation and fleet needs. They ensure compliance with transportation laws, optimize routes, and handle driver management, all while offering flexibility without needing a full-time employee.
His salary or fees can vary widely. Full-time roles earn between £30,000 and £80,000 annually. Freelancers or consultants typically charge hourly or daily rates between £40 and £150 per hour, or monthly retainers based on fleet size and service complexity.
Rates depend on the scope of work, fleet size, and location. Fees typically range from £250 to £1,000+ per vehicle per month, with hourly rates starting around £40.
The number of hours depends on the logistics needs. Smaller fleets might need a few hours per week, while larger operations could require 20+ hours per week. The time commitment varies based on the scale of operations.
He handles tasks like fleet maintenance, driver compliance, route optimization, regulatory compliance, and cost management. They ensure that vehicles and drivers meet all legal requirements and operate efficiently.
Conclusion
Hiring an external transport manager provides businesses with the flexibility, expertise, and cost-efficiency needed to manage transportation and logistics operations without the overhead of a full-time employee. Whether you need someone to handle regulatory compliance, optimize routes, or manage your fleet, an external transport manager can be a valuable asset. Carefully assess your needs and the manager’s experience to ensure you find the right fit and value for your business.
Looking for FURTHER INFO ON TRAINING?
If you want to find broker free Operator CPC training providers near your area in UK, you can use our locator for further information