|
Fleet Mentor from JJ Keller is the Source of this Article
This Week's Topic
|
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A Strategy to Affect the Cost of Operations
Delay time at a customer’s dock can be one of the biggest drains
on profit
for any size motor carrier. It has a direct relationship to the cost of operations from various angles, including the driver cost per hour,
vehicle and equipment costs, fuel costs,
and asset utilization costs, depending on the carrier’s method of measuring
its costs. Whatever method is applied to sort and measure costs, one fact is
clear: When the driver and the equipment sit idle, waiting at the customer’s
dock, costs rise and revenues
shrink.
So what is the strategy for curbing this wasteful, yet often
accepted cost of doing business? Management ultimately holds the key in
either tolerating this waste of hard earned revenue or developing an
alternative that minimizes the loss, if not eliminating it completely.
·
Know your costs. This is
fundamental for any type of business in order to achieve some form of
success. Making un-informed or ill-informed decisions without knowing the
facts are sure to cost management profits at some point. Fuel costs
alone vary from day to day, causing operational costs to fluctuate without warning in many instances. The manner
in which costs are stated is also of importance ― cost per mile, cost per
hour, vehicle costs per mile/hour actual vs. expected, cost per customer,
cost per lane, etc. The point is to know your costs and where the boundaries
lie between profit and loss.
·
Know your customers. Some
may say that the best way to eliminate delays is to drop the trailer at the
customer’s dock for loading/unloading and allow the driver to continue on to
other loads. While this may reduce some costs, empty mile costs in bobtailing
to/from another trailer still remain as does the cost of tying up one or more
assets. Sacrificing driver productivity still has a negative effect on cost
no matter how it is viewed. Have there been any discussions with the customer
on forming strategies that can benefit the business needs of both parties?
Strategies for discussion could be appointment scheduling, load
consolidations, or a combined input effecting logistical needs for customer
and carrier. What other alternatives exist to solidify supply chain
connections?
·
Know your market. Changing
economic and market conditions demand that management monitor their market at
all times. Capacity constraints and driver shortages may generate tradeoffs in the marketplace that both the
carrier and the customer can strategize. In the meantime, the carrier must be
prepared to answer: What are the customer needs? Does our service answer the
voice of the customer — at a price the customer is willing to pay? How do we
know?
Managing costs to the operation, such as delay time at a
customer’s dock, will involve collaboration between the carrier and the
customer. But for these collaborations to be effective, the carrier must know
its costs, the customer’s needs, and the market driving the need.
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Follow by Email
Tuesday, February 5, 2013
Trucking Operations Business Plan Tools
Thursday, January 31, 2013
BROKER WARNING!! c/o Freightattorneys.com
BROKER
WARNING!!
|
Broker Name |
MC# |
City/State |
|
American Transportation Services, Inc |
755729
|
Mansfield, TX |
|
Baker Truck Brokerage, Inc |
219651
|
Salinas, CA |
|
Coast to Coast Logistics LLC |
780415
|
Chandler, AZ |
|
Freight Masters Transport, LLC |
729840
|
McKinney, TX |
|
Freight Race Transportation LLC |
720436
|
Henderson, NV |
|
Gold Coast Express, Inc |
781479
|
Islip, NY |
|
Hartt Transportation |
151941
|
Bangor, ME |
|
KLC Transportation Inc |
318274
|
Ontario, CA |
|
KTL Transportation Inc |
576167
|
Billings, MT |
|
National Transportation Alliance |
368321
|
Memphis, TN |
|
Road Shark Logistics |
755892
|
Bensenville, IL |
|
Robinson Logistics, Inc |
450020
|
Portland, OR |
|
Transway Freightlines Corp |
803245
|
West Islip, NY |
|
USA Transportation |
274118
|
Franklin, TN |
|
Werner LLC |
562824
|
Corinth, MS |
Thursday, January 24, 2013
Broker Warnings 1/24/2013
BROKER
WARNING!!
Be cautious in extending any credit to the following companies. This is a list of the most recent debtors with a less than satisfactory credit rating. Please feel free to call me for a credit check on any company before you extend them credit. We can recover past due invoices regardless of the current status of the debtor (out of business, bankrupt, or scammer) even if you have already received a partial bond payout. Unless we collect, you owe us nothing. :-)
|
Broker Name |
MC# |
City/State |
|
Eleets Transportation |
751607
|
Jacksonville, FL |
|
USA Transportation |
274118
|
Franklin, TN |
|
Robinson Logistics, Inc |
450020
|
Portland, OR |
|
Werner LLC |
562824
|
Corinth, MS |
|
L&B Logistics |
669507
|
Cuthbert, GA |
|
Air Victoria Inc |
548033
|
Clearwater, FL |
|
American Transportation Services, Inc |
755729
|
Mansfield, TX |
|
Coast to Coast Logistics LLC |
780415
|
Chandler, AZ |
|
All Modes Transportation |
607758 |
Olathe, KS |
|
AEI Logistics Group LLC |
736597
|
Carlsbad, CA |
|
NameYourFreightRate.Com |
707280
|
Fairfield, OH |
|
Crowley Logistics, Inc |
372497
|
Jacksonville, FL |
|
Synergy Transport Group |
609757
|
Frederick, MD |
|
Flagship Logistics LLC |
353896
|
Valdosta, GA |
|
HeyBub Brokerage LLC |
780131
|
Norfolk, NE |
Gail Musick-Booth
Senior Account Executive
Olive Branch, MS 38654
Direct: 662-253-8906 Fax: 662-269-4172
Toll Free: 855-FR8-LAWS (855-378-5297)
gail@freightattorneys.com
www.freightattorneys.com
This Email message and any attachment may contain information that is proprietary, legally privileged, confidential and/or subject to copyright belonging to Powers & Stinson (P&S). This Email is intended solely for the use of the persons or businesses to which it is addressed. If you are not an intended recipient, or the employee or agent responsible for delivery of this Email to the intended recipient(s), you are hereby notified that any dissemination, distribution or copying of this Email is strictly prohibited. If you have received this message in error, please immediately notify the sender and permanently delete this Email and any copies. This e-mail is furnished for the exclusive use of authorized Powers & Stinson subscribers and users as one factor to consider in connection with marketing, credit or other business decisions. P&S or affiliates assumes no part of the user's business risk, and does not guarantee the accuracy to timeliness of the information provided in this e-mail. The recipient agrees that this information and its use by the recipient are subject to all of the terms and condition. Further recipient agrees to hold P&S harmless for all damages arising out of this communication. Please email gail@freightattorneys.com to be removed.
Thursday, January 17, 2013
12 Ways to Get People to Want to Do Business With You
Here
are 12 ways you can become more charismatic and get more out of all your
business relationships. Most of them are based on the principles identified by
Robert Cialdini in his book Influence:
The Psychology of Persuasion.
1. People tend to do business with people they like. So behave in a way that makes you likable. Be polite and patient. Avoid being crude, rude, gruff, or impatient.
2. People are attracted to people who keep their word. That means when you make a promise, do exactly what you promised. Do it by the deadline you promised – or sooner.
3. People trust people who have their best interests at heart. They will think you have their best interests at heart when you give them advice that benefits them more than it benefits you.
4. People want to do business with people who are experts in their fields. So first, you need to actually become an expert in your field through practice, research, training, education, and study. Then you need to do things (such as writing articles and books or giving speeches) that demonstrate your expertise to potential customers and business associates.
5. People feel comfortable giving money to people who are honest, ethical, and aboveboard. So don't lie in your marketing materials (or elsewhere). Telling the truth is much more effective.
6. People are attracted to people who are physically attractive or at least not physically repulsive. So eat right. Exercise. Stay fit. Be well-groomed. Dress well. And pay attention to your personal hygiene.
7. People feel better with people who seem to be "real." The best way to show that you're a regular guy is to be cordial, friendly, and genuinely interested in others. Instead of talking about yourself, ask about them. Ask about their company, their job, their industry, even their family and hobbies.
8. People respond to people who listen and pay attention to what they are saying. Remember the old cliché: You have two ears and one mouth because you should listen twice as much as you talk.
9. People feel comfortable with people who are like them. The trick here is to identify one thing you have in common with the other person. It could be gold, kids, pets, or anything else. Then, use that to cement a bond between you.
10. People are attracted to people who are humble. So don't be a braggart. And never discuss how much money you make.
11. People are impressed by people who seem busy. That's why you should never tell a prospective customer that things are slow and you really need his business. Think about doctors. How would you feel if you walked into a doctor's office and you were the only patient? Wouldn't you wonder how good he was? As much as you hate it when you have to sit there and wait, don't you feel more assured when a doctor's waiting room is packed? Of course, you do.
12. People want to be surrounded by helpful people – people who make their lives easier and save them time. They also prefer to deal with people who are flexible and accommodating, not rigid and difficult.
Which of these people-pleasing skills do you have already? Congratulate yourself for acquiring them, and practice them more.
Which ones do you still need to develop? You can't do it overnight, but you can – and should – work on them over time.
1. People tend to do business with people they like. So behave in a way that makes you likable. Be polite and patient. Avoid being crude, rude, gruff, or impatient.
2. People are attracted to people who keep their word. That means when you make a promise, do exactly what you promised. Do it by the deadline you promised – or sooner.
3. People trust people who have their best interests at heart. They will think you have their best interests at heart when you give them advice that benefits them more than it benefits you.
4. People want to do business with people who are experts in their fields. So first, you need to actually become an expert in your field through practice, research, training, education, and study. Then you need to do things (such as writing articles and books or giving speeches) that demonstrate your expertise to potential customers and business associates.
5. People feel comfortable giving money to people who are honest, ethical, and aboveboard. So don't lie in your marketing materials (or elsewhere). Telling the truth is much more effective.
6. People are attracted to people who are physically attractive or at least not physically repulsive. So eat right. Exercise. Stay fit. Be well-groomed. Dress well. And pay attention to your personal hygiene.
7. People feel better with people who seem to be "real." The best way to show that you're a regular guy is to be cordial, friendly, and genuinely interested in others. Instead of talking about yourself, ask about them. Ask about their company, their job, their industry, even their family and hobbies.
8. People respond to people who listen and pay attention to what they are saying. Remember the old cliché: You have two ears and one mouth because you should listen twice as much as you talk.
9. People feel comfortable with people who are like them. The trick here is to identify one thing you have in common with the other person. It could be gold, kids, pets, or anything else. Then, use that to cement a bond between you.
10. People are attracted to people who are humble. So don't be a braggart. And never discuss how much money you make.
11. People are impressed by people who seem busy. That's why you should never tell a prospective customer that things are slow and you really need his business. Think about doctors. How would you feel if you walked into a doctor's office and you were the only patient? Wouldn't you wonder how good he was? As much as you hate it when you have to sit there and wait, don't you feel more assured when a doctor's waiting room is packed? Of course, you do.
12. People want to be surrounded by helpful people – people who make their lives easier and save them time. They also prefer to deal with people who are flexible and accommodating, not rigid and difficult.
Which of these people-pleasing skills do you have already? Congratulate yourself for acquiring them, and practice them more.
Which ones do you still need to develop? You can't do it overnight, but you can – and should – work on them over time.
Apache Oil switching to Natural Gas = Huge Savings
According
to the trade publication Oil
& Gas Journal, oil and gas producer Apache (with the help of
oil services firms Halliburton and Schlumberger and equipment maker
Caterpillar) is working to convert its drilling equipment to run on natural gas
instead of diesel. And the cost savings would be huge…
In 2012, the industry will have used more than 700 million gallons of diesel through the tools needed to perform hydraulic fracturing. ("Fracking" is a key technique in extracting oil and gas from shale formations.) That's $2.38 billion, using recent average prices of $3.40 per gallon.
Converting these operations to natural gas would reduce fuel costs by 70%, according to Apache Executive Vice President of Technology Mike Bahorich.
Consider these numbers from Apache… One of its "frack jobs" in the Granite Wash at the Stiles Ranch field in Texas typically uses 36,290 gallons of diesel to complete the job. Using an average price of $3.40 per gallon, the total fuel cost for one job would be $123,386. At current natural gas prices, the cost drops to $74,473. And Apache has up to 12 frack jobs running at one time.
"This is a real trend, and it's happening now. We're witnessing a sea change in the industry that will have a great impact not only on how much less oil is imported but also will help keep our air clean," Bahorich said. "By using field gas, the U.S. would import 17 million fewer barrels of oil each year to make the diesel to fuel these fracs."
Research provided by
Sean Goldsmith
New York, New York
January 16, 2013
In 2012, the industry will have used more than 700 million gallons of diesel through the tools needed to perform hydraulic fracturing. ("Fracking" is a key technique in extracting oil and gas from shale formations.) That's $2.38 billion, using recent average prices of $3.40 per gallon.
Converting these operations to natural gas would reduce fuel costs by 70%, according to Apache Executive Vice President of Technology Mike Bahorich.
Consider these numbers from Apache… One of its "frack jobs" in the Granite Wash at the Stiles Ranch field in Texas typically uses 36,290 gallons of diesel to complete the job. Using an average price of $3.40 per gallon, the total fuel cost for one job would be $123,386. At current natural gas prices, the cost drops to $74,473. And Apache has up to 12 frack jobs running at one time.
"This is a real trend, and it's happening now. We're witnessing a sea change in the industry that will have a great impact not only on how much less oil is imported but also will help keep our air clean," Bahorich said. "By using field gas, the U.S. would import 17 million fewer barrels of oil each year to make the diesel to fuel these fracs."
Research provided by
Sean Goldsmith
New York, New York
January 16, 2013
Monday, December 31, 2012
How to start a New Trucking Company
5 Steps to
Trucking Success
Step 1: Determine if starting a new authority is the
right thing to do. Just because you own a truck and you feel like the big
trucking companies are taking too much of the freight revenue doesn't mean that
starting your authority is the right decision.
Things to consider:
1. Are you good with administration and paperwork? In
trucking there is a ton of accounting, compliance, driver, equipment, and more
paperwork that is constantly bombarding you. You will spend a significant
amount of time handling this yourself or having someone else doing it for you.
2. Are you a good negotiator? This is critical to your
success! You will be negotiating your pay for each load you accept from
shippers and brokers. These guys are pro's and know how to squeeze every nickel
of profit out of a load for their benefit-not yours!
3. Are you good with time management & priorities? If
you have been in the industry for any amount of time you know that if you
consistently fail to deliver your loads on time you will run out of customers
willing to use you.
4. Are you a good sales person? The days of being able to
survive by using 100% brokers and loadboards are gone. Shippers just do not pay
enough for multiple layers of service providers to take a cut of the load
revenue. To be successful you must have a list of shipper direct customers.
Step 2: Initial startup requirements
Okay so you decided that getting your authority is the best
option for you.
Things to do:
1.
Decide on a name. Preferably choose one that is
not overly used. You can go to http://safersys.org/CompanySnapshot.aspx
and do a name search of the FMCSA
database.
2. Choose how you would like to structure your business. I
highly recommend doing business as a LLC, a C or S-Corp. Primarily for legal
protection purposes. The trucking industry is a major target for insurance
fraud and trial injury lawsuits. If you end up doing business as a sole
proprietor all of your personal assets including your family home are at risk!
Also I recommend signing up for Prepaid Legal Truckers Protection Plan. We are
not a representative of Prepaid Legal but it is the best program I have found
so far.
3. File for your DOT/MC# with the FMCSA. The FMCSA charges a
$300 filing fee. There is no way around this fee so you must put this in your
start up budget. Interstate Trucking Alliance does provide a FREE filing
service for long haul trucking companies providing dry van, Flatbed, and
refrigerated freight services. For more
information check out www.FREEMCAuthority.com.
4. BOC3 Filing. This has to be done several companies will
do this filing for you for $40- $75. If you use the FreeMCAuthority.com service
Interstate Trucking Alliance will do this filing for you for $40.
5. Liability Insurance Filing with the FMCSA. This is the
final piece that MUST be done PRIOR to the FMCSA processing your filing
request. Please note that Non-Trucking Liability aka Bobtail insurance WILL NOT
work for this requirement. You must have primary commercial auto liability for
a minimum of $750,000 for interstate operations. However most shippers will NOT
load you if you do not have $1,000,000 in liability coverage. Plus they will require a minimum of $100,000
for motor truck cargo coverage. Interstate Trucking Alliance will provide a
FREE quote for you at http://www.interstatetruckingalliance.com/Insurance%20Services.html.
Step 3: Developing customers.
So you have waited the 7-14 business days for the FMCSA to
process your filing and you have received your approval letter in the mail. Now
what? Since you have been sitting around waiting and have bills to pay right
away you need quick money right?!
1. Sign up for a factoring service! This is also known as
quick pay. There are many freight bill factoring companies out there and they
all have pro's and con's. We have dealt with them all and we recommend www.InterstateCapital.com mention
Interstate Trucking Alliance when you sign up for a free proposal to receive a
special promotional package that we have negotiated with them.
2. You need loads-NOW! We recommend several loadboard
providers. #1 is Truckersedge.com sign up through us and receive your 1st month
FREE and a special monthly rate of $34.95. We also recommend www.checkfreightbroker.com this is
a FREE loadboard.
3. Large Brokers that will work with brand new startups.
www.jbhunt.com; www.landstar.com; www.tql.com; www.werner.com; contact us for a
more detailed list of companies.
Step 4: Compliance & Admin stuff. If you do not
get this right you will be out of business before you can get 60,000 miles.
1. IFTA's /State Permits/ etc. don't try to do this on your
own. Make sure you get this right the first time. The fines will put you out of
business! For help contact s we can refer you to local providers that will help
you.
2. DOT Driver & Equipment files. You MUST keep excellent
records or you will get shut down. We have partners that we can recommend that
will help.
3. Out of Service violations. This does not really bother
big companies because they have enough inspections to still have an acceptable
OOS ratio to not get on the FMCSA radar. However for 1-5 unit authorities this
is a nightmare if you do not actively prioritize managing your ratios. For
example if you have 4 inspections for the year and receive a violation for 2 of
them for things as simple as logbook violation or improper reflective tape you
now have a 50% OOS ratio and can be targeted by the DOT/FMCSA. Further
Insurance companies, brokers and direct shippers use this public information to
decide if they want to do business with you or not!
Step 5: Growth!
So things are going great you made it past your 1st 6 months
and you are getting new customers and now you are thinking about adding new
units and drivers.
1. Be very, very, very careful hiring drivers. This is
probably the #1 reason for trucking company failures in my experience. One bad
driver will cause catastrophic damage to your operation. I can share many
driver horror stories that will cause you to seriously reconsider hiring new
drivers. However if you want to grow adding new units and drivers is a must do.
So here is how we recommend proceeding. Hire driver by referral only. If you
can't get a recommendation from the previous employer DO NOT hire that driver.
Verify the driver's motor vehicle report and PSP fitness information. If you do
not know how to get this information contact us and we can help you.
2. Do not try to grow too fast. Many insurance companies
will cancel your coverage if you try to grow too fast in the 1st year of
operation. Talk to an insurance broker that specializes in trucking insurance
because they will have access to insurance companies that will work with your
growth. Discuss your growth goals in the beginning with your agent to save you
from having to find a new insurance company if you get cancelled for growing too
fast in the middle of your policy term.
3. Adding units. One of the major challenges for new
trucking companies is finding the financing for adding new trucks and trailers
Through Interstate Trucking Alliance we have negotiated with several industry
finance partners to provide equipment financing for ALL credit types. Contact
us and we can send you the free credit application to see what options are
available for your specific situation.
We hope you find this article helpful. For more information
we go to www.InterstateTruckingAlliance.com
. ITA specializes in providing solutions
for 1-30 unit long-haul trucking operations.
Wednesday, September 5, 2012
A Mickey Mouse Tax Plan to Save America, Part II
As I said yesterday, Disneyland is the model for a better America…
Forty years ago, Disneyland had a "progressive" ticket structure. Different rides cost different amounts of money depending on the "thrill" of the attraction.
I remember fighting with my brothers over who would get the rare and valuable "E" tickets that allowed us to ride the Matterhorn… and who would get stuck with the cheap "A" tickets and have to hang out on King Arthur's Carousel.
Disney doesn't operate that way anymore. It ditched the progressive ticket policy in favor of a flat-rate plan.
Everybody pays the same price to get into Disneyland. It doesn't matter if you spend the entire day riding Space Mountain… or park yourself on a bench in the shade and wait all day for the character parade. Everyone pays the same amount to spend time in the happiest place on Earth.
The United States should adopt a similar policy.
Forget about taxing people on a percentage of their income. The rich guy shouldn't have to pay more for an admission ticket than the poor guy. Instead, everybody should pay the same price for the chance to enjoy all the rides, attractions, and opportunities available in the United States of America.
The tax amount should be based on the same principles Disney uses to set its admission prices. As "Snow White" told me when I called up Disney's shareholder services department, those principles are: "To ensure a good value for the consumer, enable us to keep the park in excellent condition, allow us to pay our employees a competitive rate, and provide a reasonable return to our shareholders."
For example, the U.S. government plans to spend a total of $3.8 trillion in 2013. Since we have roughly 315 million people who call America "home," each person would be required to pay $12,060 to stay here.
That means a family of four would pay taxes of just over $48,000.
That's an obscene amount. But it reflects the current spending habits of the U.S. government. So that's the ticket price. That's what you need to pay if you want to take advantage of any or all of the opportunities available in America.
If it's too expensive, remember what Snow White told me yesterday: "Well… I guess like anything else you might want out of life, you're going to have to work hard and save for it."
If you're unwilling or unable to do that, leave. Nobody is required to stay at Disneyland.
If enough people leave because they can't afford the admission ticket, the government will have to adjust the price – which means it'll have to adjust its spending plans.
Maybe it scraps the plans to build Mr. Obama's Wild Health Care Ride. Maybe it stops subsidizing Solar Powered Fantasyland. Maybe – like any well-run corporation or household – the government starts paying better attention to where it wastes its money.
Then it can lower the price of admission and everyone can enjoy the happiest place on Earth.
It sure worked well for Disney.
Best regards and good trading,
Jeff Clark
Forty years ago, Disneyland had a "progressive" ticket structure. Different rides cost different amounts of money depending on the "thrill" of the attraction.
I remember fighting with my brothers over who would get the rare and valuable "E" tickets that allowed us to ride the Matterhorn… and who would get stuck with the cheap "A" tickets and have to hang out on King Arthur's Carousel.
Disney doesn't operate that way anymore. It ditched the progressive ticket policy in favor of a flat-rate plan.
Everybody pays the same price to get into Disneyland. It doesn't matter if you spend the entire day riding Space Mountain… or park yourself on a bench in the shade and wait all day for the character parade. Everyone pays the same amount to spend time in the happiest place on Earth.
The United States should adopt a similar policy.
Forget about taxing people on a percentage of their income. The rich guy shouldn't have to pay more for an admission ticket than the poor guy. Instead, everybody should pay the same price for the chance to enjoy all the rides, attractions, and opportunities available in the United States of America.
The tax amount should be based on the same principles Disney uses to set its admission prices. As "Snow White" told me when I called up Disney's shareholder services department, those principles are: "To ensure a good value for the consumer, enable us to keep the park in excellent condition, allow us to pay our employees a competitive rate, and provide a reasonable return to our shareholders."
For example, the U.S. government plans to spend a total of $3.8 trillion in 2013. Since we have roughly 315 million people who call America "home," each person would be required to pay $12,060 to stay here.
That means a family of four would pay taxes of just over $48,000.
That's an obscene amount. But it reflects the current spending habits of the U.S. government. So that's the ticket price. That's what you need to pay if you want to take advantage of any or all of the opportunities available in America.
If it's too expensive, remember what Snow White told me yesterday: "Well… I guess like anything else you might want out of life, you're going to have to work hard and save for it."
If you're unwilling or unable to do that, leave. Nobody is required to stay at Disneyland.
If enough people leave because they can't afford the admission ticket, the government will have to adjust the price – which means it'll have to adjust its spending plans.
Maybe it scraps the plans to build Mr. Obama's Wild Health Care Ride. Maybe it stops subsidizing Solar Powered Fantasyland. Maybe – like any well-run corporation or household – the government starts paying better attention to where it wastes its money.
Then it can lower the price of admission and everyone can enjoy the happiest place on Earth.
It sure worked well for Disney.
Best regards and good trading,
Jeff Clark
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