When the economy gets hit, it is usually haulage and transport companies that get hit first, and that is because fuel tends to be one of the first things to go up in cost. But that is only one of a huge number of challenges that needs to be overcome, and that is because running a successful haulage company is about three things: (1) Getting the goods from the pick up to the drop-off. (2) Delivering them in good condition. (3) Getting them there in good time.
But this can often be easier said than done and that is because every transport company needs to constantly review the environment in which they are operating and adapt their operations to meet the new change in demands. Some of the time, this can be scrutinizing the way certain things are done within their business, but most of the time they are external factors that need to be dealt with. As such, we are going to look at the main challenges and issues facing this industry and help you understand how you can navigate them smoothly and ensure your transport company runs as successfully as it can.
The Rising Cost of Fuel
This is single-handedly the biggest disrupting and contributing factor to haulage and transport companies, and that is because the price of fuel continues to rise. Sure, there are moments where the price falls slightly, which is all too often a political statement where oil-rich countries try and exert their dominance and undercut the others. Yes, there have been movements to help motor carriers recoup increasing costs with surcharges, the industry always struggles with the rising cost of fuel.
As such, it is imperative you know how you can stay within budget, and the first step is regular maintenance of your vehicles and scheduling services to ensure that all your vehicles run as effectively and efficiently as possible. You’ll be surprised at how much fuel gets wasted because of low tire pressure and below par engine oil.
Another area of importance is the strategy, not just during each journey but prior to departure too. What we mean is, you should always ensure your vehicles are properly loaded, idling time is reduced, both accelerating and decelerating is kept to a minimum, and that you choose the most efficient and smartest routes when delivering to more than one customer. It is important to understand that the shortest route is not always the most efficient or smartest. For instance, climbing a steep incline will severely damage your fuel efficiency, so just because it is 5 miles shorter, it would be more beneficial to take the longer route.
Keeping Up With The Technology
The most successful transport companies tend to be the ones that rely heavily on technology advancements that will help them streamline and improve their operations. The biggest movement in this respect has been the integration of the Internet of Things, which has made everyday operations and data sharing that much smarter. This could be via the use of a GPS fleet management system, or pallet track and trace system, or even sense-making, all of which have a huge impact on a company’s ability to oversee and manage every aspect of their business. Real-time data has transformed this area of business, so it is important all transport companies invest in the latest tech and learn how it can save them in time, money, complications and complaints.
Customer Relationships Are Important
At the very heart of every successful transport company’s business model is their relationship with their customer’s. The single best way to build and secure these relationships is to be transparent with your clients. If you don not let them in on the information you have, or let them get on the same page, or withhold information because you think it is in your best interest, you are going to damage your revenue source. It is as simple as that.
Luckily, a customer’s expectations are not entirely hinged on delivery speed. Yes, this is an important part of your service, but so is the condition of their goods and the cost. So explain that you operate in tight turnaround windows, prioritise productivity and that you operate within the legal allowances when it comes to long-haul deliveries, where you have to ensure the well-being and safety of the driver are met, and that any company that says they can operate faster is risking the quality and relationship of their service. Build a relationship where they trust you and your service and you will be able to build from this core revenue stream successfully.
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