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There are many factors that contribute to the success of a business. One critical element, especially for companies dealing with haulage work, is the issue of logistics. Looking Back to Look Forward Successful logistics involves detailed planning and assessing challenges that may come up. The first involves looking back at what was achieved (or not achieved) during the previous year and building on that experience to build a solid plan of moving forward. The Challenges for Hauliers Hauliers and truck owners face a number of critical challenges and problems that, if not addressed, can lead to dramatic downturn in business and profits. • The financial climate is such that businesses requiring transport services are demanding better and cheaper services from freight companies. • Government and public opinion is becoming more environmentally conscious, expecting to see fewer vehicles (truck and cars) on the roads and significantly reduced emission levels. Both these trends are seemingly at odds with the overall aim of the transport industry, which is to provide excellent services that return a reasonable profit. The UK is Suffering from a Chronic Shortage of Truck Drivers If you own a haulage company or drive your own truck, then you’ll know that the UK has been suffering from a severe shortage of qualified truck drivers. Haulage work is not attracting new blood, with statistics indicating that for every five drivers leaving the industry, only one new driver joins. This has led to a situation where the majority of UK truck drivers fall within the 45-59 age range and, as they leave employment, the gap is becoming wider and wider. In order to keep drivers and at the same time attract new ones, hauliers must pay higher wages. This, in turn, means having to raise their rates, which makes winning valuable contracts even more difficult. Another problem is the steady decline of small, independent hauliers. They lack the financial standing of larger hauliers and feel the crunch more severely. Thus, larger companies that before have relied on small, independent hauliers are increasingly investing in building a fleet of the own. However, this just isn’t cost effective and ultimately results in higher shipping costs. Can New Technologies Provide a Solution? Large and small haulage companies are realising that by adopting new technologies, they could pave the way for a brighter future - both for themselves and the industry as a whole. New technologies are available helping companies increase vehicle efficiency and cut operational costs. Some of these technologies help the transport manager have more control over their fleet and as a result maximise the profit of their company’s haulage work. Mobile Applications for the Mobile Driver and Fleet Manager The huge increase in the use of smartphones and tablets, alongside the relatively low cost of developing applications, has prompted a revolution in fleet management. Where in the past an investment of hundreds of thousands of pounds was required to develop and implement vehicle tracking and control programs, today these same tasks can be performed using a readily available mobile device with a cost effective app. Mobile apps can accurately track movement, stoppage time and other vital information. The use of navigation programs can alert drivers to possible traffic jams and other problems that may affect the free flow of traffic. Administration is also being made more streamlined with apps that can perform administrative tasks more accurately and at a lower cost than their human counterparts. Put together, increased usage of modern technology will result in lower costs, greater efficiency and higher profits for all those specialising in haulage work. Tackling Challenges in 2016 2016 promises to be a year full of challenges for the haulage industry, but could also be the year the industry turns itself around to successfully overcome these obstacles. Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry. Connecting logistics professionals across the UK and Europe through their website, Haulage Exchange provides services for matching haulage work with available drivers. Over 4,000 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.
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