Haulage companies are under constant pressure to improve profitability or perish-especially these days when competition is fierce and not paying attention could land you up in the red. Thankfully, there are some sure-fire ways to make your business footing more stable and solidify your profitability-and even improve it. Make a start with these three golden rules.
Keep your employees’ conduct in check
Running a business requires macro- and micro-management, and the successful operation of haulage companies is no exception. If anything, running a cargo logistics business may be more demanding in terms of personnel and operations monitoring than many others-it’s very easy for your truck drivers, for instance, to waste fuel and time and thus cost you much more than necessary. That’s why a vital part of increasing your profitability is not only making sure your employees are doing what they are supposed to do, but also ensuring they are willing to go the extra mile to achieve customer satisfaction. Successful companies achieve this by inculcating a service-oriented corporate culture in to their daily operations. You can start by implementing systems that monitor employee behaviour, accompanied with a just reward and penalty system that encourages good behaviour and discourages bad.
Upgrade your technology
In today’s world, allowing your business to lag in terms of technology can spell doom. Our modern lives are technology-intensive-we use gadgets constantly throughout the day, including web-based services to connect and check on one another. That’s why, for haulage companies, it’s a must to ensure they are using the best technologies. This is especially important for communication (to communicate efficiently with haulage drivers on the road); management (financial software and database tools); and location-based services (GPS). The upside is that there are a lot of free or very cheap software tools and apps that businesses can use. Keep in mind, however, that the whole point of effectively using technology is to increase efficiency and, therefore, profitability. If you can do a job faster, without wastage, imagine how it can translate into the bottom line?
Clean up your customer database
Like any other businesses, haulage companies depend on a steady flow of customers-and retaining them is the Holy Grail. But as management gurus often point out, the very moment customer data is put into your database it starts to become out-dated. The simple fact is that you need to continually update your database, and you can do so by keeping tabs on your customers. Call them up or send them an email to ask them how they’re doing, and slip in a marketing promotion while you’re at it. This simple strategy is twofold: it confirms the customer’s contact details are still valid, and you’re able to promote whatever new feature or service you’re offering.