Running a business is hard work and an incredible risk many people would hesitate to take upon themselves. Running a business in the trucking industry takes that risk and rides it along razor-thin margins for all but the largest of firms. To be profitable in the current market your business must find ways to reduce costs, increase vehicle and worker efficiency, and boost overall margins to pull farther away from that razor’s edge. Here we will take a quick look at five tips for improving your efficiency and lowering your overall costs to improve your business.
Budget And Know Your Margins
While you may feel that maintaining a budget is crucial for your business to run, there may be times when you fall behind on tracking and management due to the amount of work it takes to maintain a strict budget system. Thanks to fluctuations in gasoline prices, the volume of work, and unforeseen mishaps, if you don’t maintain constant vigilance on your expenditures, you may find that you are often falling short. An accountant can help with yearly expenses or management of temporary funds when tax season rolls around; unless you have one on your payroll, you may find it challenging to keep up with the ever-changing nature of expenses week by week. However, you can quickly remedy some extra costs by doing the following:
- Take accurate inventory weekly.
- Note extraneous expenses and recurring purchases of things that may be overstocked.
- Cut services and irrelevant costs that you can handle in-house rather than being outsourced.
- Monitor and shop around for the best insurance costs, as brand loyalty can be a business killer.
- Budget for safety training and reoccurring refreshers of all workers.
Outsource What You Can
While it may seem contradictory to the last bullet point, sometimes you may need to outsource services to allow effective business. You cannot be an accountant, advertising agent, human resources, and effective business manager simultaneously without some aspect falling behind the other. Outsourcing things like budget management and effective marketing can allow you to focus on the crucial elements of your business and allow professional help to support your endeavors effectively. For larger firms, hiring a professional employer organization (PEO) that will source employees for specific tasks is practical.
Use An AI Powered Solution To Plan Routes
A quicker and safer route for drivers will help to reduce stress and danger and improve efficiency. The world is ever-changing, and traffic flows fluctuate, so trusting an app like PTV Navigator, Sygic Truck GPS Navigation, or another service can help you plan more effective driving plans for your boots on the ground.
Encourage The Health Of Your Workers
A healthy trucker will suffer less fatigue, stress, and anxiety, which can lead to burnout or injury on the job. While it may be difficult for truckers to have a healthy diet educating them on alternative eating habits, encouraging fitness, and providing mental health services can be an investment that ensures the long-term wellness of yourself and your workers.
Limit Fuel Consumption
Fuel is one of the most considerable money sinks for trucking industry veterans. Some ways to reduce the amount of gasoline you burn include:
- Limit idle times through more effective routing and personnel management.
- Use higher-quality fuel to get more gallons per mile.
- Train drivers to maintain proper tire pressure and how to accelerate without over-taxing the engine.
- For smaller companies or those with short routes, consider electric trucks, which can be charged at company-owned bays.
- Ensure consistent and adequate mechanical inspections of all your vehicles regularly.
Reach Out to Strapping-Products.com for More Tips on Improving the Efficiency of Your Trucks and Personnel
If you’re looking to boost efficiency within your organization, feel free to follow our blog for the latest trends in the industry. To learn more about any of these new technologies or to learn more about our wide array of strapping products, don’t hesitate to give us a call at 888-803-8140.