Running a successful and profitable trucking business isn’t easy, especially if you’re aiming for efficiency. That being said, there are ways to stay on top of practices that threaten to creep in and create unnecessary expenses in your daily operations.
We’ve put together a list of 6 tips that will help you run a more efficient trucking business and allow you to grow your operation over time. Let’s jump right in! Check SSO Logistics here.
Fuel Management
Fuel costs are one of the most significant expenses any trucking business has to deal with. If you’re operating a fleet of vehicles, fuel alone can put a serious dent in your budget estimates. Staying on top of fuel costs requires you and your drivers to actively work on limiting the idle time of each vehicle.
Idling can often account for roughly 8% of annual fuel costs per vehicle. We’re talking thousands of dollars that you can save simply by reducing the amount of time your trucks spend idling. There are several ways to do this. One is to talk with your crew and explain why they should limit their idle time. Alternatively, you can install various idle time tracking devices that will record engine idle times for each vehicle.
Aside from idling, equipment maintenance can also impact your fuel costs. Trucks that are constantly running on out-of-spec tire pressures will consume more fuel compared to trucks that have proper tire pressures in all tires. Engine maintenance, trucker’s driving style, wind deflectors, and many other factors will have an impact on your fleet’s fuel consumption.
Track Your Fleet
Fleet tracking is an essential part of managing a trucking business. For one, you should always know where your vehicles are, but more importantly, you should always have a firm grasp of where your cargo is located. Moreover, wireless asset tracking solutions allow trucking businesses to maintain contact with each trailer and truck in real-time. By doing so, you can improve the efficiency of your fleet, stay on top of your drivers’ needs and potentially recognize logistical issues long before they become a problem.
Another important reason why fleet tracking solutions are becoming the norm is integration with larger digital logistical systems. By having all the data available at your fingertips, you can greatly reduce downtime, optimize trucking routes on the go and so much more.
Plan Routes in Advance
Route planning is important. Even doing a simple overview of the available routes can save you a great deal of time and money. Transporting freight from one part of the country to another means that your vehicle will drive through a whole range of different counties and municipalities. Hitting construction zones in any of these can put a strain on your delivery times.
On a similar note, proper route planning can help your drivers avoid more significant obstacles, such as low overpasses and bridges that aren’t suitable for semi-truck traffic. Aside from these reasons, you have the standard trucking logistical requirements such as suitable parting, toll systems, and more. Properly planned trucking routes can reduce your maintenance costs, fuel costs, drop your downtime, and help you plan your cargo much more efficiently.
Take Care of Your Drivers
Quality drivers are worth their weight in gold these days. It’s no secret that the trucking industry has one of the highest burnout rates with truckers switching companies fairly frequently. The reason why so many truckers are jumping ship is the lack of basic working conditions, lack of incentive, and a whole range of other reasons.
High turnover rates among drivers carry a whole array of additional costs that trucking businesses have to deal with. Recruiting and training new drivers can greatly increase your operating costs if you’re constantly dealing with personnel changes in your roster.
It’s much better to give your drivers good working conditions and offer incentives. Of course, recruiting quality drivers is also an important part of the equation. Driver retention means very little if you don’t have good drivers in your team.
Secure the Cargo
Freight security is a growing issue within the industry. Trucks are regularly burglarized and cargo stolen. While many thefts occur when the truck is parked or while your drivers are resting, some thieves will go so far as to attack the cargo in broad daylight. It’s your job to get the freight to its destination safely and securely.
Stolen or damaged cargo can increase your operating costs as well as your insurance costs. Because of that, make sure to have your drivers understand how to protect the cargo, how to properly secure their trailers, but also the trucks.
Scale Logistics Along with Operations
One of the most common mistakes new trucking business owners make is to scale their operation, but not their logistics. In other words, don’t increase the number of trucks and drivers if you don’t have the logistical staff to support the new vehicles. Every truck requires attention and assigning too many assets to a single logistics manager often leads to costly mistakes.
Always scale your logistics with your fleet, and you’ll find that you’re improving your bottom line despite adding a few more names to the payroll. With that said, hiring experienced logistical staff can help you optimize your entire business to a whole new level.
Professionals who have both the experience and the know-how will be able to better plan freight, give drivers optimal routes and stay on top of any potential issues that might occur down the road.
Standard Rules of Business Apply
Everything we’ve mentioned above will help you run a tight ship and optimize your business for efficiency. That being said, if you’re serious about growing your business, you also need to apply all of the more generalized business practices that are used across all industries.
Learn how to become a better leader, delegate, build a team that is self-sufficient and capable of running their side of the operation, decentralize control where necessary and stay on top of your expenses. At the end of the day, if you play your cards right, you’ll find that your business is showing steady growth year after year.