Trucks have played a major role in logistics and transportation to carry goods across the country. It has helped improve habitation, regional development, employment and has bridged a gap between the urban and rural parts of the country.
52% shipments happen by road and 34% by rail in our country. Road transport has directly increased job creation all over the world: 6.5 million in EU, 9 million in the USA and 20 million in India.
Truck companies success depends on the efficiency of truck drivers, branches, employees warehouse spaces and how they effectively leverage these assets.
The trucking companies though have their inefficiencies like empty trucks returning after delivering cargo. Logistics and transportations if planned strategically trucking companies can easily increase their productivity drastically.
1. Measuring the KPI
Small and medium-size truck companies sometimes do not have the ability to determine their measurements like break-even and productivity numbers for one truck and what the trucks contribution need to be.
It is important that truck companies derive a total revenue, this can be done by calculating : Infrastructure cost + operational running cost + insurance cost + depreciation - Sales.
After determining their revenue, the company can plan what objectives of their business they want to focus on and then they can iterate their plan accordingly.
So, one of the most important step for your truck company is to map out where the company stands at the present moment and where do you want to take it.
2. Register with a transportation management services or a trucking marketplace to increase business
Truck companies should get registered with a marketplace company, where truck owners and cargo providers meet.
The truck company can post their truck space availability along with their charges so that cargo providers can easily find you. This way the truck company can save cost and make money. The truck company can increase their profits through this as their visibility will decrease the truck loads coming back empty.
3. Focus on increasing per-truck productivity
The fastest way to increase revenue is by putting the parked trucks into operation. If the company starts to get visibility and customers from the marketplace then downtime of the trucks can be reduced, which could have been caused by lack of business, shortage of drivers, or empty return trucks. By sending out quotes to potential cargo providers and employing all the resources effectively, the truck company is surely to see an increase in its profit.
4. Driver Management
The most important people in the entire business model of truck companies are the truck drivers, it should be made sure that their morale is kept high. This can be done by giving them a fair pay, giving them the right training in safety, compliance and customer handling and by offering them other incentives and welfare measures.
It is time trick companies recognize the opportunities around them in this digital economy and get them and their staff trained to use these resources and opportunities present to improve the revenue of their business.
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