- September 27, 2019
3 Tips for Expanding a Haulage Company
As a haulage company, your goal is to eventually expand your fleet, get more contracts, and get some market share. But dealing with a larger fleet comes with a variety of logistical issues you may have not been prepared for. You now have to deal with more maintenance, keep an eye on turnover rates, and other issues that could put a wrench in your expansion plans.
But with the proper tools and a clear plan in place, you’ll increase your chances of making the transition smoother. Here are a few tips for expanding your haulage company.
Get the Proper Tools
The bigger the fleet, the bigger the expenses, but also, the higher the chances of something going wrong. The only way to maintain a fleet like this is being able to process data and use it to streamline and improve the efficiency of your fleet.
Providers like Envue, for instance, offer fleet management software that will allow you to monitor things like gas consumption and driver behavior, and keep track of all your vehicles and equipment. They can also help you monitor vehicle usage, driver check-in, and vehicle health alerts among other things. Without having a grasp on this data, managing a larger fleet can turn into a nightmare. So first make sure that you have the proper tools in place.
Retain Your Drivers
While the trucking industry is fast expanding across the country, the same can’t be said about the workforce. The pool for qualified truckers is rapidly shrinking, and unless you do everything you can to retain your drivers, you might have trouble getting qualified people to man your fleet.
This is why you will have to make sure that your employees remain loyal and engaged. This could be by offering better insurance packages. Or offering not only better but smarter pay. Reward them for good performance, and they’ll be incentivized to reach objectives. You could also consider flexible schedule and more home time.
Outsource What You Can
Many people think that expanding should be done at every level and that they should be doing more things in-house as they grow. But that is a huge mistake. Many big companies will instead use that financial windfall to outsource some back-office functions in order to lower administrative bloat.
Things like HR, payroll, billing, and accounts receivable can all be outsourced, and allow you to concentrate more on your operation. Managing accounts receivable in particular can be tedious and time-wasting. Outsourcing allows you to not only save time but money that would be spent on paying an in-house accountant. Another thing you could consider is opting for invoice factoring if you want to streamline the process and increase your business’s cash flow for your business.
Expanding a haulage company is definitely a challenge. However, it is one that you can surmount if you have the right team, vision, and plan in place. Follow these few simple tips and you should be able to expand your operation successfully.