Why Do Small Trucking Companies Fail? (How GPS Tracking Helps)
Whether you’re an owner-operator or you own a small freight company, it can seem tough to compete with the gigantic fleets on the road. So should you give up and drive for one of the larger companies, or stand your ground and get proactive? It turns out there are things you can do to keep your small trucking company from going under.
Why Small Trucking Companies Fail
There are several reasons that small trucking companies fail, and they are avoidable!
1. Failure to plan.
Plan ahead; plan to succeed. Know what market you will serve and focus on a specific geography. Plan your distinctive differences. Set goals in advance and have realistic expectations.
2. Poor Accounting.
Keep great accounting records. Record and document every expense. Know your costs. Pay bills on-time. Manage collections and receivables in a timely fashion. Make positive cash flow the forefront of your financial management.
3. Compliance problems.
Have policies and procedures for following all regulations. That includes using driver logs, following safety procedures, paying fuel taxes, regular inspections, and equipment maintenance.
4. Unprofitable route planning.
Know your real costs per mile—fixed and variable, so that you can profitably and adequately charge for route services. Know what the market rates are so that you can make sure your business is profitable.
5. No professional team.
Hire and train well to ensure you have a professional, high-quality service team.
6. Driver and operational violations.
⯁ Allow drivers to operate without alcohol and drug testing, or who are impaired.
⯁ Use drivers who operate without a valid CDL, or who are medically unqualified.
⯁ Operate vehicles without the required insurance.
⯁ Fail to require drivers to make hours-of-service records.
⯁ Miss vehicle inspections or make needed repairs.
7. Poor maintenance practices.
Trying to save money by avoiding necessary repairs and service on the equipment is a losing strategy.
8. Inadequate insurance coverage.
Make sure you have adequate liability and cargo insurance as well as physical damage coverage. Lack of good coverage can have significant financial consequences.
9. Failure to use technology.
Electronic logging devices (ELD) are mandated by law to help create a safe working environment and to track, manage, and share transportation data, including required hours of service data. And, GPS devices provide GPS tracking to benefit significantly all operational aspects of trucking companies.
How GPS Tracking Helps Small Trucking Companies Succeed
GPS tracking technology has genuinely transformed the transportation industry. The benefits are significant!
1. It allows constant two-way communication with your fleet.
That way you can reroute any vehicle in the fleet, cancel a delivery, reprogram a route, arrange a substitute vehicle, and make other informed decisions about the vehicle’s location.
2. Helps you optimize the use of resources.
Using GPS devices allows you to monitor any delivery delays, check any driver improprieties and more.
3. You can manage driver safety and monitor performance.
That keeps drivers from excessive speeds and inappropriate driving.
4. Provides improved efficiency.
Removal of paperwork from managers and drivers, allows you to focus on other business responsibilities. It also enables the management of any technical failures.
5. Allows you to perform cost assessments.
You can analyze fuel costs and usage, monitor the efficiency of older vehicles, and enable the ability to improve driving habits to improve fuel efficiency.
6. It minimizes theft risks.
You can track the location of vehicles and take action against theft.
7. It improves your customer service.
GPS tracking helps you fit more deliveries into every day, providing quicker service and even providing updates on arrival times.
Get Professional GPS Tracking Assistance
Contact GPS Technologies for the very best, most accurate, most encompassing personal and fleet tracking and monitoring services available today.
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This post was written by Writer