Stress-free logistics - 8 problems that trucking solves, part 1
What do entrepreneurs expect from the companies they work with? High quality, timeliness, competitive pricing, but most of all - problem solving. It is no different in the highly competitive logistics market. A lot of problems of the heads of logistics operators are resolved by the trucking service, an alternative to performing transports on one's own.
Trucking is a service provided by a contract carrier in which the client is provided with an exclusive tractor and drivers to operate it, either single or double crew. This solution is dedicated primarily to large logistics operators and companies that regularly have to carry out road transports. A contract carrier guarantees the resources, i.e., a tractor with a crew that the client uses to efficiently perform their transport tasks.
– We see a steadily increasing specialization in business. Companies need partners so they can focus on what's at the core of their business and what brings them revenue, because they outsource the supporting processes. Trucking is such a solution as it allows one to efficiently carry out transport tasks, facilitating the management of the entire logistics chain - without having to engage resources in employment or fleet maintenance - explains Arkadiusz Kierzek, CEO of Cargo Expert Group - a transport company specializing in trucking services.
What specific problems does trucking solve??
1. Staffing challenges
Building and maintaining a team of qualified, professional and, most importantly, responsible drivers is difficult and time-consuming, especially recently when the entire road transport industry is facing a driver shortage. Large transport companies place an emphasis on diligent employee recruitment, adaptation and training, so they know how engaging this process is. Time and resources are also required to handle personnel matters - billing, travel allowances, contracts, tests or qualifications. Above all, a logistics operator needs to deliver cargo at a specific time, to a specific place, rather than managing a team of drivers. It is worth noting that in this case we are dealing with economies of scale - the more drivers an entity employs, the more challenges arise.
2. Problems with the vehicle fleet
This point is best illustrated by the comparison and a saying that you don’t have to buy a brewery to drink beer. - I'll say even more. I believe that not only is it unnecessary to buy a brewery, but it also actually makes no sense - says Arkadiusz Kierzek. - Technical condition, financing, repairs, insurance, tires, tolls - these are all issues that a logistics operator doesn't have to deal with. It is enough to just focus on planning the supply chain as efficiently as possible. And it can do that because we take these issues off its mind through trucking. We provide modern and efficient tractor units together with qualified staff. We have a solution instead of a problem - Kierzek continues.
3. Problems with optimization of transport
In road transport, advanced ICT gives the carrier knowledge, and this knowledge can be used to build a competitive advantage and keep the business profitable in a heavily saturated market. In the case of a logistics operator which builds chains based on land transport (road and rail), sea transport and air transport, focusing on other systems and analysing data concerning drivers' work efficiency and fuel consumption is a task that can be easily left to a contract carrier. - Driver training is one of the key elements of this business. We can see this by the numbers. Our employees know well how to drive efficiently, meaning safely and economically - says Kierzek
4. Problems with changing regulations
This is one of the more difficult issues in performing road transport. Firstly, there is no other way than to keep up to date with the legislation, and if you drive all over Europe, you need to keep up with the regulations in all countries. It's also a matter of liability - both legal and to the customer, in this case the trucking user. Reliable trucking companies guarantee their customers that their cargo will not be detained due to some oversight or violation of regulations. In a time-sensitive industry, such peace of mind is priceless.
TO BE CONTINUED …