The trucking business is a lucrative one, considering the volume of freight being moved in a single day. However, the profitability of the business all depends on how it is managed and run. The absence of efficiency in transportation logistics will eventually result to half-filled truck running on congested and long routes. The operation of a trucking business can be simplified and synchronized in such a manner that the shortest and cheapest route is selected and the most efficient mode of transport is used, resulting in decreased overhead costs and improved profitability.
The following are some of the ways to improve a trucking business:
- Use technology – There is software available for transportation logistics that can increase efficiency through effective and synchronized routing and scheduling. Most of the available software provides optimization models that take into account the existing rules on vehicle-loading dock compatibility, route restrictions, vehicle size limits, and equipment availability. The investment for the technological infrastructure will easily pay for itself.
- Efficiently organize loading and receiving schedules – Incorporating flexibility in the schedule of pickups and deliveries can result in better fuel efficiency that will offset the increase in fuel costs. The truck schedule must be flexible in such manner that trips are made during off-peak hours when there is less road congestion. The reduction in idling time saves precious fuel and cuts travel time.
- Learn Freight Classification Laws – The Federal Trade Commission (FTC) regulates the classification of freight. It is necessary for freight companies to be updated on any changes in the FTC freight classification laws to avoid the extra cost of reclassification. Knowledge of determining the proper classification and the correct costs associated with a particular freight will enable the freight company to determine how much to charge shippers. Load reclassification always results in higher cost of shipping.
- Compliance with Driver Hours of Service Laws – The U.S. Department of Transportation (USDOT) sets the rules on the number of hours freight drivers may drive each day. The aim of the law is to prevent fatigue, falling asleep while driving, accidents and fatalities on the road. These laws, as with other laws, are subject to changes, which truck operators and drivers must observe the moment they become effective. The most current change in the law is the requirement for a 30-minute break following eight hours of driving. Companies and drivers can avoid fines by staying up to date with the laws.
Trucking business is a very challenging one but incorporating improvements on how it is operated will generate more revenue for the company.