How do I find out how a distributor’s delivery trucks and routes are run?

For a distributor, the delivery operation is part of the product. Start with the fleet. Ask for a list showing each vehicle, who holds title, whether any are leased or financed, and what repairs have been done. A tidy maintenance log suggests care. Gaps, or a fleet that is mostly near the end of its life, suggest spending you will inherit. An equipment appraiser can help you judge condition.

Next, the routes. Ask who plans them and how: by hand, by software, or by the habits of one dispatcher. Ride along on a few runs to see loading, timing and customer contact. Ask how late, wrong or damaged deliveries are recorded and resolved.

Then the people. Ask whether drivers are employees or contractors, how they are paid, and which of them know the customers best. Ask how the business tracks fuel, insurance and overtime, and whether delivery is charged to customers or absorbed. Your accountant can tell you how those costs appear in the statements, and your lawyer can review any driver or vehicle contracts. Ask also how breakdowns are covered when a truck is off the road, and whether the business keeps a spare or rents one.

Key takeaways

• Get a vehicle list showing ownership, financing, repairs and condition before you value the fleet.
• Ride along on routes to see how dispatch, loading and customer contact really work.
• Ask whether delivery is charged to customers or quietly absorbed into margins.
• Ask which drivers know the customers best, and what would happen to service if they left.