The trucking industry is a low margin industry. When things go wrong, you need strong relationships to draw on (not to mention a healthy cash flow) in order to make corrections. Ideally, when you foster the best relationships, you won’t hit as many stumbling blocks. Which is a good thing because errors and issues can be expensive. Here are some of the essential partnerships that will propel your trucking company forward.
Your Mechanic
You cannot afford to have trucks waiting on
repairs or having reliability issues on the road. While larger trucking
companies may have their own mechanics, chances are if you are starting out you
will hire an outside professional. The skill and availability of your mechanic
will determine how soon you can get your equipment back on the road. And it
should be more affordable to bring your equipment in to this mechanic (when
possible) rather than get repairs or maintenance on the road. Look for a local,
independent mechanic or a shop with experience serving the trucking industry.
Your Invoice Factoring Company
The benefits of factoring for trucking
companies are huge. Getting your cash in immediately after a load is completed
helps you fund the next portion of your trip. Factoring can help you deadhead
for longer to get a better load, invest in equipment to help you grow your
fleet and even make sure you have enough cash for a down payment. But does your
invoice factoring company offer you everything it should? In trucking, bad debt
can sink businesses. Consider nonrecourse factoring, a process in which your
invoice factoring company may cover your customer’s bad debt.
Your Drivers and General Manager
It might be odd to think of your staff as
“partners” but taking that mentality will help you get the most from them. It’s
true that drivers on the road have great insights into which loads might be a
better fit for your business. And, when you have a strong general manager, you
can worry less about how your drivers are managing their time.
Your Customers
Your relationship with your customers
matters a great deal. You want repeat business from them, and for them to
spread word of how reliable your business is. When managing your customer
relationships, always consider if it is in your best interests to be working
with them. Larger companies may help boost your reputation, but they also tend
to pay slower, and waiting for their payment can create cash flow problems
(unless you’re factoring).
Your Equipment Dealer
Especially when you’re buying used, having
a strong relationship with the company you’re buying or renting equipment from
is a huge advantage. When their salespeople will keep an eye out for the specific
equipment you’re looking for, offer you better prices on things you’d like to
purchase, or just help you make better overall equipment decisions, you’ll come
out ahead. Remember that it is a big trap in trucking to get in over your head
with debt for new equipment. Ideally, your dealer will help you assess how much
you could actually benefit from a new purchase instead of focusing on what a
sale means for them.
Interested in developing a new relationship
to benefit your trucking business? Reach out to J D Factors to discuss your
options for factoring.
