No matter how big trucking companies are, they are prone to making mistakes. Now, we are not trying to scare you here. We simply want to help you become more aware of the mistakes trucking companies make so you don’t have to commit them.
While mistakes are often made by owner operators in the trucking industry, the good news is, you don’t have to make the said mistakes. By identifying and avoiding or correcting the said mistakes, your trucking business will likely succeed.
But what mistakes should you exactly avoid or correct?
In this article, we will talk about the top five mistakes trucking companies make.
5 Biggest Mistakes Trucking Companies Make
To help you get off of the right foot, here are the five biggest mistakes trucking companies make:
Not Automating Processes
One of the biggest and most common mistakes trucking business owners make is failing to automate processes that must be automated.
These include accounting, transportation management such as FlexTMS, and the like.
In this digital era, you can easily find software that can automate many processes. By doing this, you streamline your business. Automation also means that you don’t have to hire employees or add to your current employees’ workload.
However, research shows that many business owners fail to automate because they don’t want to feel uncomfortable. For some entrepreneurs, including those in the trucking industry, sticking to manual processes that work is the key to maintaining a successful business.
If you are one of these entrepreneurs, you must consider that the times are changing. A lot of things are now digital, including money, events, and artwork.
Failing to keep up with a world that’s clearly going digital means that your trucking business is bound to fail.
Plus, a lot of things in the shipping industry are now automated. Mark Solomon of DC Velocity stated that big-name carriers spend as much as $1 billion each year on upgrades and new technology.
Given this, small- and medium-sized local trucking companies must also invest in upgrades and new technology.
Use of Outdated Equipment
Another top mistake trucking companies make is using outdated equipment.
These equipment can range from the trucks to the safety equipment your employees use.
Since you own a trucking company, your trucks become the core of your business. Without them, you won’t be able to deliver anything. As a result, you lose revenue.
Faulty trucks can also cause harm to your or your employees. For instance, you are driving a faulty truck. You get into an accident because of it. Consequently, you get an injury and huge medical bills.
The same thing can happen to your drivers. Consequently, you have to pay for their medical bills and pay them as they recover.
In addition, a faulty truck can break down in the middle of a delivery. As a result, consumers don’t get their orders on time. Some of them might be okay with it, but others will complain.
All of these can be avoided once you make sure that all your trucks are in pristine condition. Always subject them to maintenance and safety checks.
Terrible managers always scare off excellent employees. As a result, they leave. In fact, research shows that one in two employees left work because of a terrible manager.
This costs the economy a minimum of $319 billion per year. Given this, trucking companies also lose money because of good employees leaving their jobs.
In the case of trucking companies, drivers often leave because they have terrible fleet managers or dispatchers. In the trucking industry, this problem becomes worse because of different personalities.
For one, many truck drivers do not receive criticism well. Their tired selves often exacerbate this. Plus, truck drivers often need guidance because they were wired to comply with many regulations.
On the other hand, managers can receive criticism. However, terrible managers often thrive on criticizing every little thing their subordinates do.
While some drivers can tolerate terrible managers, many do not. Despite spending long hours on the road and thus developing patience, truck drivers need order and structure.
Unfortunately, bad managers cannot offer drivers these two things.
Without drivers, your trucking business will be severely affected. You won’t be able to fulfill orders. Fewer drivers also mean that other drivers have to work longer hours to fulfill the demand.
So, choose a manager wisely. Make sure that your manager is someone who’s highly qualified.
Not Paying Attention to Compliance
In relation to mistake number three on this list, many trucking companies fail to pay close attention to compliance.
As a trucking business owner, you must comply with regulations, even if you don’t want to.
At times, you might be tempted to push your three-month servicing off to six months or worse, a year. However, you must know that doing so will just cost you more.
In the event that your truck breaks down because of improper maintenance, you have to spend more repairing it, or worse, replacing it than you would have if only you had it serviced on time.
Additionally, many trucking companies also fail to train their employees, especially drivers, on certain regulations. As a result, their drivers get fined, or worse, face a lawsuit.
So, remember to always comply with any trucking-related regulation, even if it makes you uncomfortable.
Not Monitoring Key Performance Indicators
The last of the mistakes trucking companies make is not monitoring key performance indicators (KPIs).
Think about this: how would you know if your trucking company is doing well or not if you don’t have indicators? Unfortunately, feeling that your trucking company is succeeding is not enough.
So, set some KPIs and monitor them regularly. Now, it’s up to you how often you want to, but doing a monthly or quarterly KPI check sounds great.
Now that we have told you the top mistakes trucking companies make, you must avoid them at all costs. If you think you committed the said mistakes, don’t be afraid to correct them.
Do you want to avoid mistake number one? See how FlexTMs products can help you now!