The trucking industry serves a critical role in the economy. It’s responsible for transporting goods across the country, which helps businesses run smoothly and efficiently. In the Philippines alone, there are approximately 217.060 registered private trucks. This shows just how much this industry contributes to the country’s progress.
However, running a trucking business is not all smooth sailing. Various challenges will test your mettle as a business owner. Fortunately, you’re not alone in this journey. Many trucking businesses have gone through the same challenges and have come out stronger on the other side.
The following are just four issues many trucking brands face and how you can deal with each one.
1. Choosing the Right Truck
Choosing the right type of truck is essential to your success. The kind of truck you choose will determine how efficient your operations will be. It will also affect your bottom line since different trucks have different price tags.
There are many factors to consider when choosing the right truck for your business. These include the type of goods you’ll be transporting, the load’s weight, the haul’s distance, and more.
Suppose your drivers cover more than 250 miles daily and carry heavier loads in larger quantities. You might want to consider more durable trucks. These trucks work best for long haul freight and can cover more ground in a shorter amount of time. But a smaller truck might be ideal if you’re mainly catering to businesses in the same city or town.
When choosing a supplier, do enough research and check for their reputation. As much as possible, choose a trucking supplier who can maintain and repair your trucks when needed to save more resources in the long run.
2. Dealing With Driver Shortages
Trucking companies have continued to struggle to fill driver positions for many years. In 2020, the trucking industry was short of around 20% of drivers in Euroasia. The driver shortage results from many factors, such as the retirement of older drivers and the lack of interest from younger generations.
Driver shortages can cause delays in your deliveries. This can damage your reputation, cost you customers, and increase the risks of accidents. So how do you deal with this trucking problem?
One way to solve this is by offering training programs for new drivers. This will help attract new industry talent and fill driver positions. Invest in a good training program to produce safe and competent drivers.
Another way to deal with driver shortages is by offering incentives. This can be in the form of higher salaries, better benefits, and more flexible scheduling. By providing these incentives, you’ll be able to attract and retain drivers.
Truckers can also cope with driver shortages by teaming up with other businesses. This way, you can share resources and drivers. Team up with other trucking businesses in your area to solve this problem together.
3. Compliance With Regulations
Transporting goods comes with many risks, which is why the government highly regulates this industry. There are regulations regarding the type of trucks logistics companies can use, the number of hours drivers can operate, and more. These regulations are constantly changing, which makes it hard for trucking businesses to keep up.
Ensure you stay updated with the latest regulations to avoid penalties and legal issues. You can consider subscribing to newsletters or following industry news sources. This way, you’ll be one of the first to know about any changes in regulations.
Having a compliance officer in your company is also a good idea. They can ensure that your operations are following all the rules and regulations. With a compliance officer, you can avoid costly mistakes that could damage your business.
4. Handling Competition
The trucking industry is one competitive landscape. The number of logistics companies and the entry of new players into the market only continue to increase. You will have to think of ways to stay ahead of your competition to stay relevant.
Investing in new technologies can help you improve your operations and make them more efficient. Using the latest technologies, you’ll be able to deliver goods faster and at a lower cost. One tech investment you should consider is a telematics system.
Telematics can help you track your vehicles, plan routes, and monitor driver behavior. Telematics can also provide valuable data that you can use to improve your operations.
Another way to stay ahead of the competition is by offering value-added services. Examples of value-added services include storage, packaging, and assembly. These can help you attract new customers and keep your existing ones.
Trucking companies face many challenges. This includes driver shortages, choosing the right trucks, compliance with regulations, and handling competition can be tricky. By addressing these four problems, you can put your company in a much better position to succeed.