Trucking companies cut costs when they are ready to grow stronger.
Correspondingly, Trucking Companies are treating cost reducement as an opportunity to reinforce their services and capabilities.
Actually, the implementation of cost reduction is showing Trucking companies which their key competencies and strengths are. Straight proportionally, cost-cutting measures are often employed to keep a trucking business operating through tough economic periods.
Remember: When trucking companies cut costs, they are indirectly sending a message to their truck drivers, employees as well as customers. That is why trucking companies should try to keep their customer and employee loyalty at the highest level.
Thereupon, when a trucking company is planning to start cutting costs, it should make sure that they have secure employee commitment. A positive emotional commitment of their employees is essential because otherwise, trucking companies are going to face with behavior change.
Every now and then, running a trucking company means facing situations where the taxes and fees are increasing on a yearly basis. So, when revenues stand still is when trucking companies decide to start cutting costs.
So, the cost reduction strategy of each trucking company should include the following key points:
- Redesigning critical processes and services;
- Aligning compensation- you should not forget to fairly reward your employees;
- Setting aggressive cost reduction targets;
- Streamlining the organization;
Tip: Trucking companies should create an emotional and rational business care, one that is evoking pride amongst their employees.
Yet, when are trucking companies ready to start with cost reduction?
Well, you will know the right solution for your trucking company when you answer the following questions.
- Do the structures and processes in your trucking companies duplicate and create additional costs for your business?
- Is your trucking company producing unnecessary deliverables?
- Is your trucking company performing activities that other companies can perform it more cost effectively?
Further, in this article, you will have the chance to read more about the 10 greatest ways how Trucking Companies Cut costs.
So, let’s take a look!
1. Perform Regular Maintenance On Your Trucks
In general, trucking companies cut costs in many different ways.
In the first and foremost way, trucking companies cut costs through performing regular maintenance on their fleet, including trucks and equipment as well.
Moreover, trucking companies that are performing regular maintenance on their trucks and equipment, are proven to be providing better services to their customers.
Mainly, it is so, because trucking companies that are not performing truck maintenance on a regular basis might find themselves in the situation that they get their trucks commissioned for days and even weeks. Which later on results on company’s cash flow.
Most commonly, preventative maintenance inspections cover the following points:
- Record repairs and the routine application of fluids;
- If there is need for a repair or replacement for some item;
- Indication of the mileage and the inspection interval;
- List of specific items that should be checked;
As you can see, trucking companies cut costs through performing regular maintenance on their fleet, because they know that not keeping their fleet in the proper way can lead to expensive repairs.
Luckily, modern trucks nowadays are equipped with the latest technology gadgets and onboard computers which allow truck drivers to keep a close eye on what is going on with the truck.
2. Maintain a Tight Budget
Trucking companies cut costs by performing regular maintenance on their trucks, but as well as through maintaining a tight budget.
Maintaining a tight budget is essential for trucking companies that want to become among the best in the USA trucking industry.
The first step toward maintaining a tight budget and cutting costs is – understanding where all of your money is going to.
Therefore, trucking company owners should know the precise sum of money that they are spending, starting from dispatching a truck up to the costs of each route that truckers are driving.
So, do you know what type of practices are the best trucking companies in the USA using for maintaining their budget tight?
Well, at the present time, the best trucking companies in the USA are maintaining their budget tight by creating a profit and loss statement every month.
The reason why trucking companies are choosing the profit and loss statement is due to the fact that this practice is helping them to track their expenses and to make crucial decisions.
3. Eliminate Intangible Costs
Intangible costs are the costs that are related to the identifiable source.
Thereupon, intangible costs can be caused by the poor attitude of truck drivers, poor communication, as well as poor health.
So, intangible costs are not always foreseen.
Hence, the elimination of tangible costs can lead trucking companies cut costs. Once the source of the intangible costs is being detected it can be stopped immediately.
Trucking companies that want to improve their ranking in the trucking industry should be very serious about the quality of the services that they are offering as well as about the participation of their truck drivers in social events.
That is to say, trucking companies should put grief, stress, and pain aside from their businesses. It is the only way to eliminate intangible costs.
4. Optimization of Truck Driver Territories
With optimization of truck driver territories, trucking companies not only that can cut costs, but as well can design more efficient and compact routes. Which later on helps their truck drivers.
Moreover, trucking companies cut cost with optimization of truck driver territories, mainly because it helps them to reduce:
- The overall mileage;
- Transportation costs;
- Travel time;
- Stem Mileage;
- Journeys between stops;
In addition, trucking companies cut cost by optimizing the territories of their truck drivers, because it has turned out to be the best solution for calculating the compactness of each territory as well as the only way to calculate the transportation workloads.
Hence, through route optimization trucking companies can as well calculate regular delivery routes and can track the dynamic route scheduling on a daily basis.
5. Use GPS Mapping
Human element plays the biggest role in load transportation.
Nevertheless, the trucking industry nowadays is getting help thanks to the newest technology innovations.
Among all technology innovations, trucking companies have found truck GPS and trailer GPS to be the most helpful ones.
Thereupon, trucking companies cut costs these days by investing in technology.
Yet, these investments have shown a huge return rate.
In general, truck and trailer GPS allows trucking company owners, dispatchers as well as customers to have a better insight of the precise location of the truck on a given route.
Straight proportionally to that, they are in the position to make a good time-estimate for deliveries.
Also, if there are any unwanted situations, trucking companies with the help of truck and trailer GPS can communicate critical information with their truck drivers and customers.
So, as you can see truck and trailer GPS helps significantly when trucking companies cut costs.
Alongside with the GPS mapping systems, trucking companies cut costs with fuel optimizer as well.
The fuel optimizer that was designed and developed by Fueloyal, is helping trucking companies to save up to $300 on a monthly basis. That is to say, thanks to the fuel optimizer, trucking companies can solve their fuel purchase problems.
It is no secret that the skyrocketing fuel prices have brought the enormous unexpected cost for trucking companies. That is why I highly recommend for trucking companies who want to cut costs to start using the fuel optimizer.
Remember: Fuel prices fluctuate a lot and straight proportionally it is not that easy to predict when the price of the fuel is going to go up or down.
6. Combine Deliveries
Trucking companies cut costs as well by combining deliveries.
In general, trucking companies decide to take this step because they want to avoid wasted delivery space. Combine deliveries have turned out to be especially important on pick-ups.
Trucking companies cut costs by optimizing deliveries continually. More precisely, trucking companies are using a system that is helping them re-optimize their schedules, which later on results into maximizing their efficiency.
Hence, trucking companies cut cost by combining deliveries because they know that it is the easiest way that they can take in order to reduce costs. In addition, trucking companies by combining deliveries can definitely create significant efficiencies.
7. Cut Miles Traveled
At first sight cutting miles traveled does not seem like the best solution for trucking companies to cut cost, but luckily it has turned out to be pretty much efficient.
Moreover, trucking companies cut costs by decreasing the number of unnecessary trips,
The previously mentioned solution – GPS tracking, that almost all trucking companies are using to cut costs, is also helping them to cut miles traveled.
Therefore, trucking companies by tracking driver territories, and how truckers are performing the transportation process, can see where they can eliminate the need for physical travel.
By taking advantage of technology trucking companies can be in touch at any time with their truckers – it is one of the ways that trucking companies can eliminate the need for physical travel and to cut costs.
By the same token, telematics are banning excess usage of the truck by truck drivers, because telematics solutions are providing clear insight to trucking company owners.
8. Use Innovative Automotive Technologies
Technologies are changing the U.S. trucking industry, it is inevitable.
More precisely, the newest technology innovations are helping trucking companies cut costs.
In general, innovative minds that are developing innovative automotive technologies are well aware of the role that these technologies play in the overall work of trucking companies.
Innovative automotive technologies are helping trucking company owners to do a better planning, monitoring as well as management of the environmental objectives.
That is to say, technology plays a major role in capturing data and delivering that data directly to trucking company owners as well as truck drivers.
Innovative automotive technologies in the form of Cloud-based solutions combined with mobile applications can help trucking companies in the process of helping both large and small trucking companies.
9. Outsource Certain Tasks and Services
Trucking companies cut costs by outsourcing certain tasks and services. Even the largest trucking companies do that.
The main reason behind trucking companies outsourcing certain tasks and services is the fact that they want to focus on their core competency.
Trucking companies that are outsourcing certain services are the ones that are not letting their business get spread out.
Moreover, trucking companies cut costs through outsourcing their services have busted the myths that customer service suffers when trucking companies are deciding to outsource.
Also trucking companies that are outsourcing services can maintain the same level of control.
Every now and then, they can gain more control by having on their disponibility additional truckers and equipment.
Nevertheless, trucking companies should remember that the biggest risk that is being associated with fleet outsourcing is finding the right partner for the trucking needs that you have.
10. Improve Safety Procedures
Trucking companies that are ready to improve their safety procedures are the ones that are going to reduce their costs on time.
Owners who decide to invest in safety will experience reducement of the cost of insurance. Also, that way trucking companies can reduce potential workers compensation claims.
Here are the ways that trucking companies can cut costs:
- Invest In Quality Equipment- Truck drivers are spending their lives on the road and are dedicating themselves to a different lifestyle, straight proportionally trucking companies should provide them high-quality, reliable and safe trucks and equipment;
- Hiring A Safety Manager – If you own a large trucking company then hiring a safety manager should be on your list. The duties of safety managers include driver instruction, ensuring compliance with DOT, FMCSA, OSHA and HAZMAT laws, as well as monitoring safety records.
- Emphasize Routine Inspections – Safety inspections should be part of trucking company’s culture. There are few key points that safety inspection should include. All truck drivers who have passed training are well aware of safety facts and figures.
Trucking companies should have a safety program that is more than the simple phrase that you tell your truck drivers “drive safe”.
To enumerate, more and more trucking companies these days are looking forward to finding effective ways to cut costs. In the situation when trucking company owners want to cut costs they should be sure that the process they are going to start is manageable and will end positively.
In the foreground, it has been shown that most trucking companies have managed to cut cost up to 10% without changing their activities with the rest of their organizational processes. When trucking companies are ready to make the first step towards cutting costs, they should make sure that they are tactical, and are making program-by-program decisions. Taking more strategic measures can lead you to a way successful cost-cutting process.
I guarantee you that if you decide to implement these ways that I have presented in this article then your trucking company will definitely achieve successful cost-cutting.
If you have any previous experience with the implementation with some of these great ways for costs cutting, then please feel free to share it with us in the comment box.
The post 10 Greatest Ways Trucking Companies Cut Costs appeared first on Fueloyal.
This post first appeared on Semi Truck Accidents – 10 Best Tips For Safely Sharing The Road With Truck Drivers, please read the originial post: here