Running a transport business is getting tougher, and it’s not just the rising fuel prices that are putting the pressure on. Globalisation has brought about much stiffer competition, whilst a lot of key customers are not longer using transport companies simply to reduce their own outgoings, and then there are the ever changing legislative requirements that come into force every week, each one more backbreaking than that last.
In a nutshell, investment in transport is no longer supported by the returns offered in this market, not like it once was anyway.
However, to help you run your transport company as effectively as possible, we have compiled a list of business advice that should see you succeed in the market.
The Right Equipment For The Job
It goes without saying that you must have the right equipment for the service you offer. It’s that simple. Buying a seven-and-a-half tonne truck when you need to a twenty tonne to do the task properly is what we call a bad investment, and exactly the kind of move that will get you into financial woes. It works the other way too. If you’re service mainly involves highway work, by a lorry known for its fuel economy.
What is important to remember, is all equipment that is used by your business must be safe and reliable. To help ensure this is the case and all equipment is maintained to this standard, certain technologies should be invested in. These include crash avoidance systems, protection systems and general safety systems. These are highly regarded as useful technologies in the realm of safety for heavy vehicles and combinations.
To ensure these are truly beneficial to your business, do your research and make sure you are buying equipment that is cost-effective. Luckily, this is easier than ever before as there are savvy ways of saving in this area, whether that be purchasing used trailers or Aganto loading bays. As a rule of thumb, make sure equipment doesn’t exceed 35% of your total costs and that you only buy from reputable sellers.
Getting The Best Out Of Your Staff
The best asset of any business is its staff, which means your greatest skill as an owner or manager is getting the most out of them in an efficient and effective manner. This is best achieved through training, especially training that has been tailored to suit your staff. For instance, make sure you have a general driver induction training module for existing driver’s as well as all new-starters. From here you can introduce more specific modules to improve their knowledge on areas such as responsibility, safety and security, and operations to name just a few.
This investment won’t just benefit the driver. How? It’s simple psychology. The more you invest in a driver’s development, the more critical they will become to your business and thus more valued. This will reflect in the way they go about their duties. They will feel a sense of pride and achievement and will reward you with good work. This same pride will also serve as one of your most effective marketing tools. By interacting with your existing customer base in a positive manner, your chances of bringing in new business will increase organically.
It is also important you get to know your staff and understand their health and wellness needs. A great way of doing this is through psychometric tests, which will provide a detailed analysis of their emotional stature. This is usually beneficial to the employee as well as you.
Having A Solid Customer Base
Having a good customer base is what determines every business’ success. However, ensuring you maintain a solid customer base that you can built from can be tricky. The first thing you should do is understand where you stand in the eye of the client. You are their to complete their primary objective of marketing through distribution. Quite simply, you need to deliver their product in an efficient and safe manner. The next thing you need to consider is how you are going to rise above the competition.
We suggest you do this by informing your customers of how you go the extra mile for them. This could be with facts that state 95% of all deliveries are made on time, or through good safety statistics, by ensuring you offer a reliable and consistent service or even by offering a reduced price for bulk requirements and long-term partnerships. Key areas that customers will be wanting to hear about include safety, cost management, delivery performance, volume and customer management, and operations management. So any methods of improving your business on these fronts will ensure you are heading in the right direction to succeed.