Recently, FreightWaves spoke with Wabash Director of Strategic Programs Glen Stewart about the company’s trailers-as-a-service (TaaS) offering, designed to help increase asset uptime.
According to the company, it has secured a near 100% recovery rate for its customers’ damaged trailers in 2024. “If damaged, trailers are fixed immediately, or a loaner can be provided,” a Wabash representative told FreightWaves.
Related: Wabash’s new trailers-as-a-service platform to support FreightVana’s power-only offering
In the interview, Stewart discusses this offering and the future of the OEM marketplace.
Questions and answers were edited for clarity and length.
FREIGHTWAVES: What is the TaaS offering?
STEWART: TaaS encompasses the entire life cycle of the trailer. This means providing not only the trailer itself but also managed care services, including maintenance and uptime management.
Our goal is to ensure our customers experience minimal downtime and are continuously on the road. We strive to be a one-stop shop where customers can rely on us to promptly address any issues that arise.
Also, by providing access to state-of-the-art trailers and comprehensive maintenance services, TaaS alleviates the burden on drivers, allowing them to focus on essential tasks such as pre-trip and post-trip inspections, leading to safer equipment on the road.
FREIGHTWAVES: Why do you think it’s just now that we’re starting to see this model being invested in by OEMs?
STEWART: The significance of the drop-trailer model has always been apparent, although
with a slow adoption rate in our industry. However, the onset of COVID-19 acted as a catalyst, accelerating the adoption of this model.
Shippers were compelled to rethink their logistics strategies to ensure efficient freight delivery to end users amidst pandemic-related disruptions. This shift in mindset prompted 3PLs and brokerages to innovate and offer value-added solutions beyond live loads, leading to a resurgence in the popularity of drop-trailer models.
As a result, we’re witnessing an ideal shift in the industry’s approach, with more stakeholders recognizing the benefits of subscription-based trailer services like those offered by Wabash.
By subscribing to our TaaS program, customers not only gain access to trailers but also benefit from comprehensive maintenance support and an ecosystem of services. Our focus extends beyond short-term gains, as we envision transforming the marketplace and driving long-term value creation for all parties.
FREIGHTWAVES: How does this service ensure you’re reducing lost time from assets being down?
STEWART: Our primary objective is to take a proactive approach to trailer management, ensuring that, first, our customers receive top-quality assets that minimize the risk of breakdowns and disruptions.
We prioritize thorough inspections and maintenance checks, even before trailers are dispatched for use. By utilizing our technology platform, telematics and continuous monitoring, we aim to preemptively identify and address any potential issues, safeguarding the reliability and efficiency of our customers’ operations.
Understanding the lean operational nature of 3PLs and brokerages, we integrate our program into our customers’ businesses through our managed care model.
Under this model, customers have access to our dedicated operations team, who have expertise in fleet and maintenance operations. This eliminates the need for customers to invest in building and managing their own operational infrastructure.
FREIGHTWAVES: How do you feel like this offering can evolve?
STEWART: I envision a future where power-only freight solutions become increasingly prevalent.
An emerging trend is the growing participation of owner-operators in this space, driven by a desire to minimize costs and streamline operations. Many owner-operators prefer to focus solely on driving their trucks without the added responsibility of owning and maintaining trailers.
Additionally, there’s a significant shift in the expectations of truck drivers, who increasingly seek flexibility and a work-life balance similar to remote work. They aspire to complete their deliveries efficiently and return home promptly.
In this context, TaaS emerges as a solution that addresses these evolving needs of drivers.
Additionally, we are building a comprehensive ecosystem around our trailer services.
With the recent launch of our parts e-commerce site, we’ve introduced a platform where customers can easily order parts as needed. Moreover, our extensive national dealer network is equipped to handle maintenance tasks and provide loaner trailers when necessary.
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