The transportation industry around the world is huge. It is estimated to be worth $1.3 trillion in the United States alone and also expected to see an almost 3% increase in growth by the end of the year. Behind this industry is 3.9 million truckers, making up 9% of the American labor force.
These statistics prove that owning and operating a transportation company is big business, but with fuel charges increasing year after year, the costs will start to pile up. That is why, as a business owner, you need to follow this guide to keep costs down and profits high:
Boost the Efficiency of Your Transportation Business
One of the best ways to improve the efficiency of your transportation business is to improve the telematics technology you use. EnVue, one of the best telematics providers out there, offers GPS tracking and other user-friendly solutions so that you always know where your fleet is and can automatically acquire essential data you can then use to improve the routes and services you offer.
-
Add GPS Tracking to Your Vehicles
GPS tracking allows businesses to keep a live feed on their trucks at all times, meaning you can immediately send repairs if a vehicle breaks down en-route without the need to liaise with the driver. You can also use the data to work out the most efficient means to get to your destination, based on city ordinances and other local laws, as well as traffic patterns.
-
Improve Data Collection
Automatically collect this data so that you don’t have to burden your drivers. They can instead focus on their job.
-
Use Simple Solutions to Improve Fleet Management
With an easy-to-use interface, you can improve fleet management tenfold, allowing you to direct your employees and drivers with ease.
Reduce the Costs of Your Transportation Business
The best way to improve profits immediately is to reduce costs. As a transportation company, some of these cost reductions will need significant investment upfront, so do be aware and plan accordingly.
-
Invest in Hybrid or Electric Vehicles
With the price of gas and diesel rising every year, switching to hybrid or electric vehicles is the smart move. Some countries are leading the way with this innovation. Germany, for example, has opened up a highway that is designed to power electric heavyweight vehicles to travel significant distances. With innovations in electric vehicles and country-wide solutions like Germany’s coming into the foray, it only stands to reason that the USA will also adopt such policies. By saving up now, you can afford these hybrid or 100% electric vehicles when the time comes.
Don’t forget to add charging point signs to let employees and visitors know where they can recharge their vehicles. This is also an effective way to market your business as showing a committment to sustainability and environmentally-friendly practices.
-
Be Creative with Routes
Large transportation trucks don’t have the luxury of being able to drive on most if not all roads like personal cars can. That is why following the recommended route by Google or other map services isn’t always the best solution. By using your data, you can find the best route for your company that will save on drive time and fuel costs.
-
Improve Maintenance and Checking Capabilities
Improve maintenance and checking capabilities on your vehicles. Indicators that are placed on the wheel nuts of your wheels, for example, can show when one is loose and make it easy to fix the issue. An electronic DVIR system can also help speed up checks and improve maintenance.
With rising fuel costs and the ongoing maintenance costs, transportation companies must think of new ways to increase profits going forward. With the suggestions outlined above, you have multiple strategies to investigate and implement, and the time to start making these changes is now.