truck business Archives - Global Multiservices

the-challenges-of-managing-a-successful-trucking-company-in-the-united-states.jpg

The trucking industry is one of the biggest industries in the United States and provides revenue for the country. According to the American Trucking Trends 2017, trucking generated over 70% of the nation’s freight bill. However, while the trucking industry hauls billions of dollars of goods across the country every year, trucking companies face a myriad of challenges that can prevent their companies from meeting their full potential.

Starting a trucking business usually requires more than getting the appropriate license and purchasing trucks. It poses challenges you need to overcome if you want to be successful. This year has presented multiple struggles for the industry, from government freight regulations and environmental factors to rising fuel prices. Surmounting those obstacles is not impossible. But it takes time, effort, grit, and determination.

Global Mukti Services has compiled the top challenges of managing a successful trucking company in the United States to aid in the quest for a successful business. These challenges present complications relative to finding a solution. So, keep reading to find out how to address some of these challenges in your trucking company.

MEETING CUSTOMERS’ EXPECTATIONS

The evolution of customer expectations is one of the most significant challenges of managing trucking companies. In today’s world, customers surf the net with their smartphones and expect instant gratification. They expect

start-up trucking companies to keep up with trends, despite their lack of multi-million-dollar infrastructure.

Addressing expectations relating to the feasible output is a significant hurdle for many trucking companies. Also, the advent of AI, electric self-driving trucks, and other technologies has increased the expectation for trucking companies to perform more significantly than ever.

Companies now have to convince their clients they are still human-oriented. They must also show them the value of their business even when they cannot match other companies’ infrastructure.

SOLUTION

Add extra value to your service

Adding extra value to your services is always a benefit and a bonus for customer relations. Often, the most prominent companies overlook this. Therefore, your company may be able to take advantage of it.

Use modern technology

Utilizing modern technologies is another way of proving you provide value. Using modern technology tools in your day-to-day operations implies your business is moving at the speed of technological growth.

Understand what motivates your client

Understanding what motivates your client is paramount when running a successful trucking business. You must know what they want and how they want to be treated. These make them patronize and trust your business.

Build customer trust

Being open about your business operation builds customer trust. And trust is the cornerstone of any business relationship. So, always focus on building trust first.

Be open and transparent with your operation.

No one likes a shady company, and being honest about your operations and processes makes your customers expect normal operations. It also allows smooth communication.

SECURITY THREAT

Security is one of the growing concerns for trucking companies. Valuable technologies are hauled across the United States, increasing the amount of crime. With freight disappearing from storage and trucks, trucking companies must increase security in their facilities and trucks.

Cybercrime is also a new threat that has emerged in the trucking industry. Dependence on technology determines the risk of cybercrime activities in your company.

SOLUTION

Partnering with companies that have earned their status as secure technology through adequately built systems and processes ensures your company maintains secured operating environments.

DIGITAL EVOLUTION

Trucking companies operating in similar ways for decades tend to shy away from significant change. So evolution toward digital solutions has affected many trucking companies. Many digital reports are now replacing paper ones. These include operator checklist, equipment condition report, fleet repair requests, pre/post-trip inspections, accident reports, etc.

Training older drivers

Training older drivers and staff to adapt and use modern tools and technology can also be challenging.

While some adopt the new technology with open arms, others might reject the idea without question. These affect the management when operating in a fashion that is the most effective for individuals.

Introducing new technology

Introducing new processes and technologies implies an upfront expenditure with the hope of increased revenues. For example: Purchasing new electric trucks and upgrading your driver’s communications to a smartphone and tablet requires an upfront expense.

SOLUTION

The key to understanding how to tackle the challenge of digital evolution is knowing the best methods of implementing new systems into your existing framework. Make your staff understand the intrinsic value of new technologies. Show them how the efficiency of digital solutions bypasses old paper documentation.

DRIVERS FATIGUE MANAGEMENT

Driver fatigue is another challenge faced by trucking companies. Fatigue sets in on monotonous positions and can be caused by more than mere tiredness. Therefore, a critical fatigue management program is paramount for employees. Also, fatigue management is challenging for trucking companies because they want to balance efficient service while allowing their drivers to work at a more leisurely and enjoyable pace.

SOLUTION

Implementing health and safety protocols for truck drivers is the first thing to do. Technology has also provided tools to track and manage health and safety issues at multiple locations. Using automated trucks will also eliminate driver fatigue issues. However, these trucks may increase driver influence problems since they do not need to pay much attention due to assisted driving technology.

STAYING IN COMPLIANCE

Staying in compliance is mandatory for trucking companies operating across the United States. The Federal Motor Carrier Safety Administration ensures motor carriers adhere to all regulations. The Department of Transportation provides permits and licenses for trucking companies to operate legally. But renewing those permits and authority can be hectic and time-consuming. Also, every state has different regulations, making it difficult for trucking companies to keep up with them.

SOLUTION

Working with a trucking permit provider like Global Multi Services relieves you of all the stress. We will help you apply for and renew all your permits and licenses. We will also update you on changes in regulation from time to time. These allow you to focus on other parts of your business.

WRAPPING UP

The trucking industry provides an essential service and can overcome its current challenges. With foresight, perseverance, planning, and determination, you can overcome these challenges and see your business thrive.


REASONS-MANY-TRUCKING-COMPANIES-CONTINUE-TO-FAIL.jpg

Running a trucking company can be rewarding, but it is not for everyone. People come into this industry with unrealistic expectations to be successful in months. Forgetting there are certain precautions and practices you need to adhere to attain success.

According to reports, more than 500 trucking companies went under in 2019. This trend is said to be caused by unfavorable conditions for new companies in the trucking industry. But the failure of established firms has pointed to other causes.

Trucking companies face risks day in and day out, especially if they are new to the landscape of operation. But these are avoidable with proper planning and having the right help in your corner. Therefore, knowing the common reasons other trucking companies fail can help you prevent being one of them.

In this blog, Global Multi Services gives you a hand-up on the industry by covering why trucking companies continue to fail.

LACK OF PLANNING 

Starting a business is rewarding and life-changing. However, a proper business plan is imperative to its success. Every trucking company needs a firm foundation to build strategies and techniques to operate efficiently. Running a trucking business is the same as running other businesses. But the industry has many state and federal regulations with a unique client base.

Failing to factor them into your business plan may haunt your business later. Therefore, you need thorough research and a plan to build a good foundation. Having a business plan also helps you brace for any possible contingencies. Hence, take time to create your business blueprint and, if possible, involve a corporate attorney. Understand your client base, know the market, and calculate weight surcharges.

UNSKILLED MANAGEMENT 

Sales activities take place outside the business premises for trucking companies. Therefore, a managerial effort is required to keep track of all the drivers on the road. They also ensure the freight arrives on time and in perfect condition. So, employ a management team to keep track of money flow, bills, operations, and more.

Managers are one of the most important aspects of a business operation, and unskilled managers scare off good employees, making them leave. Therefore, your management team must have qualifications and experience. That way, you will be surrounded by a knowledgeable team with a nodding acquaintance with business success.

CASH FLOW PROBLEM 

Starting a trucking business without considering your cash flow is one of the biggest mistakes business owners make. The cash-flow issue is a combination of many factors. These include low-paying freight, high costs of operations, too many unpaid invoices, etc. Also, clients often take up to two months to pay their invoices, and the trucking company has to cover the costs with its money. To ensure business operations go on, the company needs to foot utility bills, pay employees, build inventory, pay suppliers, get more clients, and cover tax expenses. So, lay out strategies to manage your cash flow with the help of a business management service.

COMPLIANCE ISSUE

Staying compliant is paramount for trucking companies operating across the United States. The Federal Motor Carrier Safety Administration encourages safe driving and ensures they follow the required regulations. These include obtaining permits, licenses, DOT Compliance, maintenance, etc. Also, every state has its requirements depending on freight, truck weight, and the distance traveled. Failure to adhere to these regulations can lead to fines, penalties, license revocation, or shutdown.

TO SUM IT UP 

The trucking industry is competitive, and you can only be successful with a comprehensive business plan while identifying and exploiting available market gaps. Do thorough research and avoid unnecessary mistakes. Stick to your plans and learn from your predecessors to be successful.


truck-companies.jpg

The trucking industry is experiencing a severe shortage, and it is growing worse over time. More than 50% of trucking companies are also having trouble hiring truckers. These imply they have trucks sit for days, increasing costs and impacting the company revenue. Truck drivers move about 70% of raw materials and products used throughout the United States. With driver shortage rising, prices are increasing, and fewer goods are delivered. These could skyrocket inflation if not addressed.

Age restrictions and schooling issues top the list for driver shortages across the country. The federal law prevents drivers below 21years from hauling freight across state lines, even though 49 states allow younger drivers to get a commercial driver’s license. Also, according to reports, the average new truck driving student is well into their 30s. These show they are often on their second, third, or even fourth career path.

Another obstacle is the requirement for truck drivers to pass pre-employment, drug screenings, and the COVID-19 pandemic. Drug screening has deemed more than 70,000 drivers ineligible, but just 12,000 have completed the process to return to duty. The inflation and job loss caused by the pandemic have also made many drivers consider other careers.

TRUCK DRIVER SHORTAGE SOLUTION

Trucking companies need to stay efficient and deliver goods on time despite the truck driver shortage. But these can be challenging without a resilient logistics operation. A lack of drivers can also affect the company’s success, especially with international shipments. Here are a few practices trucking companies can implement to focus on controllable issues and help reduce shortages and inflation.

ATTRACT NEW TRUCK DRIVERS

Providing a good working environment attracts new drivers. It also makes it easier to foster partnerships and build relationships within the company. Paying for training, schooling, and giving drivers tools for safe and efficient driving help attract new drivers. It also demonstrates foresight and concern for them.

INCREASE PAY AND BONUSES

Trucking companies and recruiters should increase pay and sign-on bonuses to combat driver shortages. Paying drivers a little more or being more flexible with time on and time off eliminate potential operational interruptions. Issues like bad road conditions and traffic in metro areas reduce drivers’ income when paid per mile. Therefore, it is advisable to pay fuel economy, safety bonuses, and labor fees for drivers who unload their freight. Other ideas include offering a comprehensive benefits package and tuition reimbursement. Additionally, implementing flexible shipping rates that pay drivers by the hour.

EMPLOYING UNDERREPRESENTED DEMOGRAPHICS

Trucking companies should widen their pool of potential applicants by employing under-represented demographics. These include military veterans, women, and younger drivers. According to reports, less than 7% of United States truck drivers are female. Therefore, creating more awareness and promoting women drivers will increase recruitment.

DRIVING SCHOOL AND LOWER DRIVING AGE

The minimum federal age for driving trucks across state lines is 21. These make it challenging to hire young drivers and eliminate eligible workers. Lowering the minimum age opens more positions for interested drivers between 18 and 20years.

Trucking companies can also attract new drivers by paying for their training and the cost of getting their CDL. Offering a program that trains them to meet the criteria for interstate transport and building more truck driving schools with campuses across the United States attracts more truck drivers.

REDUCE DRIVER DETENTION TIME

Truck driver shortage affects freight movement, and drivers are needed to handle current and future capacity. And one of the best ways to keep up with demand is by reducing driver’s retention time. Truck drivers are often delayed and forced to wait for freight when shipments are not ready. These increase drivers’ frustration and reduce their pay. Innovation and driver management help schedule the pickup/unload times and reduce detention time. These improve operations and save time and money.

IMPLEMENTING SHORTER ROUTES

Fleets can minimize the downside of driving for many hours and avoiding traffic by implementing shorter routes. Decreasing the time drivers spend on the road makes their lifestyle more appealing to new drivers. For example, A driver can take a trailer to a drop-off point, and another driver picks it up and takes it to the final destination or another drop-off. Adding more drop-off points for shorter routes makes drivers get home every day.

INCREASE TRUCK PARKING CAPACITY

According to the US Federal Highway Administration reports, 80% of truck drivers claim finding where to park is problematic. The lack of adequate parking infrastructure makes truckers park in prohibited areas and pay fines. Safe parking spots are unquestionably necessary for protecting truck drivers and preventing threats to their security and cargo.

The government should provide databases for booking safe and secure parking spaces convenient for truckers, transportation companies, and facilities. Every truck should have a delivery route and a designated place to park. These create safer working conditions for truck drivers.

WORKLIFE BALANCE

New drivers, especially Millennials and Gen Z, are hesitant to become truck drivers because it is challenging to maintain a healthy work/life balance. Truck drivers are often away from family and friends for weeks or months. These need to change, and the best option would be to develop fleet technologies.

PROVIDING AUTONOMOUS TRUCK

The technology isn’t limited to passenger cars anymore. Self-driving trucks are starting to take over and could help relieve current drivers and make it easier for companies to meet their delivery deadlines without pushing their drivers too hard. The trucking industry is exploring the most cutting-edge technology for improving trucking. Tesla announced its fully autonomous self-driving freight truck in 2017. Elon Musk also announced in 2021 that these trucks would be the first Tesla vehicles to have Level 4 automation, meaning they would be able to pilot themselves without the need for human intervention.