I’m going to wade into meslippery’s favourite subject for a moment; paying drivers by the hour. Just how realistic is this? I was surprised to see Lou Smyrlis tweet the following during a speech by Kriska Transport’s Mark Seymour at the recent TransCore User Conference: ‘Paying by the mile is going to have to change: Seymour.’

That’s a pretty bold statement from a fleet executive, especially one as esteemed as Seymour, who currently also serves as chair of the Ontario Trucking Association. I wonder if that remark will bring some heat from his co-horts at OTA?

At any rate, it needed to be said. Driver pay isn’t sufficient and it’s encouraging that the industry’s top executives acknowledge that. Seymour isn’t the first to do so. At last year’s OTA convention, a panel of trucking executives was equally candid about the subject. Moderator David Bradley posed the question: “Drivers have been paid on a productivity basis for most of the industry's history. Now with GPS and possibly EOBRs, you really can get a handle in terms of the driver's performance. Is it time to pay drivers by the hour?”

To which Vaughn Sturgeon of Warren Transport (now Atlantica Diversified Transportation Systems) said: “If you think the driving force is going to continue on without demanding changes, you are fooling yourselves. Canada is approaching 70% of its population in the current workforce. We have a demographic tsunami heading our way. We are going to need to attract new people who are not used to our pay practices. They are just not going to put up with it.”

And then Bruno Muller of Caron Transportation added: “The whole discussion in this industry is how much more can we squeeze out of the driver? We are in for a crash down the road. If you are totally honest and account for what the driver gets paid for the total amount of hours he puts in, the guy is basically working for minimum wage most of the time. I don't think there is any way to soften this. I believe drivers are underpaid not 5% or 10%, I think drastic numbers. And that carries through to the owner/operators. When the economy picks up, we haven't got a chance of competing with other industries. And there will never come a day when we have a computer driving a truck. Take it to heart; we have a problem: Our people don't get paid enough and it's going to hurt us big time down the road.”

Those are some profound admissions from industry leaders. When speaking with our recently crowned Owner/Operator of the Year, Howard Brouwer, he said driver pay is the number one issue facing the industry. And while he tracks his costs meticulously and runs a smart operation, he would welcome the switch to hourly pay.

“It would take a lot of stress off you,” Brouwer said of hourly pay. “The biggest thing right now, with the hours-of-service, is the stress of running the miles in that 14-hour day, especially when you get sitting at a customer’s. The stress level goes sky high. If I sit, I get bored. When I get bored, I get tired. So now you have a bored, tired truck driver on the road. With hourly pay, you can be relaxed and do the job properly because you’re not worried about making up that time.”

This is no secret, but Brouwer says the onus is on carriers to make shippers accountable for detention time. Only then, is hourly pay feasible.

“The trucking industry has to look more at detention time at customers,” he said. “They don’t want to say to customers that ‘You have to pay for our equipment sitting in your driveway,’ but they have to. Customers demand 98% on-time delivery but then you sit in their yard for six hours waiting to get loaded.”

We seem to be at a tipping point. Drivers, for the most part, would welcome the switch to hourly pay. Forward-thinking fleet executives agree change is necessary. But as long as there are fly-by-night operators running with a blatant disregard for the regulations, as is the case today, it will never happen. Fortunately, technology is now allowing for the more effective and efficient enforcement of the rules. Carriers that don’t adhere to the regulations will soon be exposed and squeezed out. CSA 2010, EOBRs, satellite tracking – these are the great enablers for enforcement agencies that should spell the end for non-compliant carriers. Then, and only then, will it be possible to make some progress when it comes to how - and how much - drivers are paid.

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The 25th edition of the Fergus Truck Show came and went over the weekend and already there are rumblings it will be the last. The body’s still breathing folks, so let’s not bury it just yet. It may be premature to be discussing alternative venues in southern Ontario but that’s exactly what many visitors to the show were doing on Saturday and Sunday.

Indeed the show has its challenges. Shrinking crowds and escalating costs are chief among them, exacerbated by a growing reluctance on the part of landowners to rent space needed for camping and parking.

It seems that somewhere along the way, the event morphed from truck show to music festival, yet organizers have heard those complaints and are trying to return the show to its roots.

Many of us were expecting disaster last weekend after the show dropped its full-time staffers and announced it would be run entirely by volunteers. However, things ran smoothly, for us at least, and the volunteers were always ready to help out when called upon. From the moment we checked in, Cassie ensured we had everything we needed and our important Owner/Operator of the Year presentation went off without a hitch.

For that we are thankful. (More on the Owner/Operator of the Year later).

The volunteers worked tirelessly throughout the weekend and at no time did we witness anything resembling chaos or disorder. Well done.

There are always complaints surrounding an event of this magnitude, but most we heard concerned the weather and the dwindling crowds. One ultimately affects the other and it seems Fergus Truck Show organizers just can’t catch a break when it comes to weather. The weather gods were smiling Sunday, however, and you couldn’t have asked for a better day for a truck show.

There were still some breathtaking show trucks on display but the overall truck count was down, way down. The spirit of the show’n’shiners remained strong, however, with countless hours spent primping and polishing their rigs.

For me, truck shows like Fergus are all about the people. Here are a couple stories that stood out from the weekend:

When making the rounds with colleague Adam Ledlow and our video equipment, we ran into Dale Holman, one of the very first Truck News Owner/Operators of the Year. His son Cory was on-site polishing their 94 Freightliner dubbed Generations.

Dale was the first owner of the truck, and he put a million miles on it. His father Floyd then took over and added another million miles. Floyd passed away, and now it’s Cory’s turn to add his million miles to the odometer.

The truck still gets nearly 9 mpg, if you can believe that. On the door you’ll find inscribed the names of three generations of Holmans: Floyd (flanked by angel wings), Dale and Cory. It’s trucking families like that who are the backbone of the industry. Watch for their story on Adam’s Fergus episode of our WebTV show Transportation Matters in the coming weeks.

The other moment that really struck me was when we had a very special visitor to our booth, 10-year-old Jackson Felkar. Jackson is wheelchair-bound and comes from a trucking family, Felkar 5 Trucking out of Dutton, Ont. They haul livestock.

According to his parents, Jackson is an avid fan of Truck News. He gets excited when it arrives in the mail and he even takes it with him to school. Below, you’ll see a picture I took of Jackson at our booth with publisher Rob Wilkins and associate publisher Kathy Penner.

It’s moments like the ones I just mentioned that make going to the truck show worthwhile. If it wasn’t for the show, I wouldn’t have known what ‘Generations’ meant when I passed that white Freightliner on the highway and I wouldn’t have known that the work we do here makes a kid’s day in Dutton, Ont. when the latest issue arrives in his mailbox.

The Fergus Truck Show, and others like it, have their challenges. But let’s not lose sight of the fact these get-togethers are important for a whole bunch of reasons and at the end of the weekend, the memories we take with us hopefully outweigh the inconveniences encountered or the discomfort wrought by an uncooperative Mother Nature.

Jackson Felkar pays us a visit at the Truck News booth at the Fergus Truck Show. His family runs Felkar 5 Trucking hauling livestock out of Dutton, Ont.

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From my experience, many of our larger B2B customers view their site as a customer portal for relevant data and are not overly concerned with anything beyond that functionality. During this past recession, our company has shifted a lot of our resources to web development and understanding how to make it an effective marketing tool for our customers. Without getting too technical, my top 10 suggestions for a more marketing orientated B2B website are as follows:

1. Give your web some personality.
   Many companies put website development in the hands of their IT department. Although they certainly play a big role, there should be a second set of eyes directing your look and message to the marketplace.


2. Take a message first approach.
   Don’t keep what you do best a secret. Make sure your value proposition is front and center. Narrow your focus and increase overall results by speaking specifically to your 80% strength and customer target.


3. Use an effective combination of Flash and HTML text in your web layout. Too much of one or the other can leave the viewer either frustrated with download time or bored from lack of effective design and text heavy layouts. A “picture is worth a thousand words” applies to websites too.


4. Optimize your site.
   Having a site without SEO (Search Engine Optimization) is like having a hot dog without the bun. Proper SEO can dramatically change your presence on the web through increased rankings.


5. Keep your news or blog category current.
   Having original news and/or blog content will increase rankings and customer interest, while copying others verbatim and having out of date entries can work against you. The more you update your site, the more reasons search engines such as Google will have a reason to visit.


6. Attention to detail is important.
   Use quality photos and well written and proofed text. Make sure your logo and tagline are reproduced consistently and correctly throughout your site and please avoid extended “under construction” postings.


7. Make your site customer centric.
   Make it easy to navigate. Tell your message quickly and concisely. Have applicable customer log-in portals front and center. For new visitors, the majority are looking for contact info so make it easy to find.


8. Benchmark your activity before and after.
   Use Google Analytics to better understand traffic demographics. Review regularly and make changes to your site based on the data received. Set targets to better capture your viewers’ attention and increase frequency and lengths of visits in the future.


9. Use a combination of push and pull strategies to increase your web presence.
   Don’t wait for business to land in your lap. Push out your information. Promote your website to customers and prospects.


10. Use one capable marketing provider. Your results will be more cohesive, cost effective and less demanding on your time. Taking a “too many cooks” approach (within your company and by using multiple vendors) could result in poor overall delivery and lack of consistency with your branding efforts.

Lee’s quote for the day,
“To catch the big fish, your marketing needs to have the right hook, line and thinkers.” :)

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For at least 18 months now I’ve been hearing about “zombie” truckers, motor carriers which are barely able to meet payroll from week to week yet somehow manage to hang on. Their continued existence maintains the capacity overhang that deflates rates since freight volumes during this recovery, especially in the LTL sector, are not growing as quickly as during prior recoveries. No doubt their desperation to secure any business that can keep them afloat for another week also contributes to depressed rates for the industry overall.

I’ve also been hearing for the last 18 months that until the lending institutions pull the plug on these severe underperformers the industry will continue to be mired in its over capacity/low pricing glut. Well folks, we may be waiting for a long time for that to happen.

Elian Terner, director, investment banking for Scotia Capital, was at our recent Carrier Workshop, sponsored by Peoplenet Canada and conducted in partnership with Dan Goodwill & Associates. Terner is a rising star in our industry and he provided his take on the industry’s future direction and what trucking executives must consider to best position their companies for the years ahead. You may not like what he had to say. Terner acknowledged that lenders have been reluctant to force delinquent operators into bankruptcy; used truck prices are still low enough lenders would not get much in return when selling off the equipment.

Would improved pricing for used iron change things? Perhaps, but as Terner pointed out, lending institutions don’t really want to be operating trucking businesses. “Generally speaking they’re not in the business of seizing assets. That’s not what they want to do. In many ways it’s better for them to keep the company alive,” he said.

So if the lending institutions don’t want to fix the industry’s problems then what? We should be doing what needed to be done all along; fix them ourselves.

1.For companies looking to grow organically, there needs to be a focus on limiting capacity. As Mark Seymour of Kriska Transportation recently pointed out at Transcore’s strongly attended users conference: “We are here to create a model we can live with for years rather than months.” That means not adding capacity unless absolutely certain of its long-term need and not getting trapped into other people’s pricing. Market share don’t mean a whole heck of a lot if you’re bleeding red while trying to achieve it.

2.For companies looking to grow by acquisition, Terner believes a number of attractive opportunities exist to acquire troubled carriers. “Consolidation will be a key theme for the trucking industry over the next several years…A highly competitive M&A market will be led by large firms focused on growth by acquisition and financial buyers with strong cash positions,” he says. But before that happens the companies in a good position to be acquirers need to get over their current cautious approach. Few seem willing to risk making a bad investment so soon after recovering from a nasty recession.

3.Company executives looking to sell need to get over their “wait and see” attitude. Those who may want to sell seem to be held back by the cold reality that their company is not worth anywhere near what it used to be. Also, many independently owned and operated trucking firms in the Canadian market do not have firm succession plans in place and in many cases no family members waiting in the wings and interested in becoming second or third-generation operators. Both those factors are pushing owners who could be selling towards a wait and see attitude. Yet, these are times when “wait and see” can have very negative consequences. That was made abundantly clear by the numbers provided by Terner. Consider that back during the industry glory days of 2002 to 2007, when trucking company valuations were going off the chart, we hit a peak of 10.7 x EBITDA. During the trough of the recession trucking company valuations are down to about 4.2X EBITDA, according to Terner. As he pointed out, can you imagine how much was lost by people who took a “wait and see” attitude because they did not properly understand the market trends and their company’s value? A return to peak valuations will likely take another 5-10 years, according to Terner and will require substantial sustained EBITDA growth.

Seems to me like there is no better time than the present for motor carriers to, as Terner put it: assess their strategic positioning and determine the best path forward.

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Life is hard. Get over it.

My father is 85 years old and last week while attending a family wedding in Toronto suffered a mini-stroke or T.I.A. While not a major stroke it has required him to move from his "Seniors Complex" to a higher care facility. It is another blow in a storied life, that on the surface, hasn't been kind to him.

My father, born in Eastern Europe lost his mom when he was a very young boy. He wasn't treated very well by his step mother and at age 16, he got dragged into the horrors of WW2 avoiding the mass graves that claimed the bodies of so many of his friends in the Russian work camp that took 4 years of his life.. He came to Canada with nothing but his clothes and an insatiable work ethic. He lost my mom when she was only 51 and lost my step-mom to cancer 15 years ago.

Don't feel to sorry for him. He doesn't feel sorry for himself. A lot of people, given his history, would allow him that, but he's never gone there.

My father knows two things:

1) Life is Hard

and

2) Life is so Incredibly Good

His focus has always been on #2 and he has lived a life that is rich & fulfulling despite the enormous challenges he has faced.

It begs all of us to ask the same question: Do we fundamentally believe life is good or do we believe life is hard?

The truth is we will get what we focus on.

If we fundamentally believe life is hard, don't be surprised if it turns out to be. It will be hard every moment of every day.

If we fundamentally believe life is incredibly good, it doesn't eliminate/solve some of the hardships we'll face. They just don't matter as much. They won't bog us down. We'll learn from them and move on to receive the good things life has for us.

As a leader in your organization and your family, your focus will determine your destiny.

So my question is: What does YOUR future look like?

Today is a great day to start focusing on something good.

David Benjatschek is a professional speaker/workshop facilitator and rock star change agent. Visit his website at www.marketbeamer.com

Continue reading "Life is Hard. Get over it." »

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I checked the ads for truck drivers in the Montreal papers last week, and it would seem the good times are back again. Lots of camioneur jobs in the Journal de Montreal (31 ads) and plenty in the Gazette, too. Trucking being a leading economic indicator, this bodes well for the rest of Canada's economy.

My laptop's hard drive seized up just over a year after I bought it. The dehumidifier in the basement stopped sucking 14 months after purchase. Seems like the Asian manufacturers have the warranty expiry down to a science. As far as laptops, extended warranty is the way to go. But it was refreshing to lay off the computer for awhile. It should be a tool that you control, not the other way around.

These energy drinks are everywhere, and they're especially prevalent in truck stops. Most contain a cocktail of stimulants like caffeine, gotu kola, taurine and ginseng among others. I've tried one brand on a couple of times with mixed results. It did help me stay awake and complete the trip when I was very fatigued. But despite being extremely tired, I didn't sleep that long or fitfully while off-duty, feeling the lingering effects for hours the next day. Some people are apparently having heart palpitations because of these potions. Any negative experiences from these beverages?

Lastly, I'd like some advice on bringing a bicycle along on truck trips. Over the years I've seen them mounted on the back of a cab. There should be room to do this but I'm concerned about staying clear of the hoses and hydro cord. Of course a road bike fits no problem in the passenger seat of a daycab--if you take off the wheels and the seat post. Then you can strap it in with the seatbelt nice and secure. Fold up bicycles are another idea, but even so they're still bulky in a small cab. I've often thought that a good fold-up cycle would be a nice enticement as part of a recruiting package. Having a bike along can make for pleasant times exploring new locales, not to mention the physical benefits of riding on your time off.

We drivers had three bikes up in Ottawa at one time, that I picked up at a nearby Value Village. We certainly got good use out of them cycling from our suburban hotel along a terrific bike trail that took us past the governor-general's place and Steven Harper's dwelling on our way to Mel's Diner or the Bytown Market. Ottawa is particularly bike-friendly and over a couple of summers I was able to explore the War Museum, Aviation Museum, Museum of Civilization in Hull, and the National Gallery. Did I mention the Museum of Technology? Canadians should see these places. Admission is cheap, $10-15 and we paid for with our taxes, after all. On a typical Ottawa layover I would check out some used books stores, find a good ethnic place to eat lunch, and go for a good long ride along the Ottawa River. Those were the days.

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A professional tanker driver unloads at an Ontario plant. He’s from the States and far from home. Unloading can be laborious at times, especially following a long run and all the rigors of the road. After unloading and taking a few moments to chat with a fellow driver, he climbs back into his rig and prepares to leave.

The driver he was just talking to notices something is wrong. Suddenly, the tanker driver is slouched in his seat – the victim of a heart attack. Scenes like this play out all the time and from this point, then can have one of two outcomes.

In this recent, real-life scenario, it was a fortunate outcome. Several employees at the Home Hardware paint division plant to which the driver was delivering were volunteer firefighters. And the facility had been equipped with an Automated External Defibrillator (AED). Witnesses leapt into action and were able to administer CPR as well as defibrillation. The driver survived and is reportedly doing well.

The above story was relayed to me by Kevin Hall, vice-president of Keith Hall Transport, himself a volunteer firefighter. He tells me these AEDs are incredibly easy to use (even with no training) and not overly expensive. You can get them for as little as $1,500 nowadays.

According to the Heart and Stroke Foundation, when combined with CPR, an AED can increase the likelihood of saving a heart attack victim’s life by 75% or more over CPR alone. The same group also says: “Defibrillation improves survival rates by up to 30% if delivered in the first few minutes. With each passing minute, the probability of survival declines by 7 to 10%. Making defibrillators easily accessible has the potential to save thousands of lives.”

With the proven effectiveness of AEDs and the ever-decreasing cost of the equipment, I have to wonder why more terminals aren’t equipped with the devices – especially flatdeck terminals and others that involve a lot of hand bombing and manual loading and unloading. Efforts have been underway to get these life-saving devices into every hockey rink, where out-of-shape middle-aged men have been dropping dead for years. Why don’t we start putting the same emphasis on getting them into loading facilities, where out-of-shape, middle-aged men are also regularly exerting a lot of energy? Something to think about.

If I’ve persuaded you to consider implementing an AED program at your facility, here’s a great document from the Heart and Stroke Foundation that will get you started: http://tinyurl.com/33rt8xs. You hope you never have to use it but if you do, there’s a very good chance you’ll eventually save someone’s life.

Do you work for (or deliver to) a company that has AEDs on-hand? If so, please share your observations/experiences.

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Interestingly enough Ray Haight posted some rules for dispatchers. After all he did post rules for drivers so the other side of the coin is only fair.

1) Honesty is the best policy. Of course it is. However both sides have to listen to each other. At the end of the day both have to do what the customer wants, not what they want.
2) During driver meetings have the dispatchers invited to attend, to listen to problems compaints etc. If we are going to make mandatory attendance for drivers it should be likewise for dispatchers. If a driver wants every weekend off make sure the dispatcher knows about it. If the driver needs 20,000 miles a month to survive, well I'd think twice about hiring them as a single THAT IS LEGALLY IMPOSSIBLE.
3) The recruiting department is paramount to involve the disptach. Not in the interview or the orientation but, to listen to the problems they have, with the drivers. Listen learn, and then during Orientation address. You cannot ever fix what is broken if you do not know or understand what is broken.
4) Every dispatcher no matter how good or bad, is under a lot of mental stress. They have to keep the company happy and turn the drivers. Give them all the tools to do their job properly and try to reinforce what the expectations are. Dispatchers, if always honest, will always at the end of the day receive cooperation from the drivers.
5) Make sure the drivers know and are aware of the consistency of the loads, and miles, everyone travels. This way they are more than aware there is NO FAVORTISIM. Oh I know there will always be accusations. Mostly unfounded but they will exist. Ralph THE TRUCER criticized Ray for his comment about treating all drivers the same. If any dispatcher is perceived as showing favortisim, then rumours run rampant, drivers all talk, they all rebel. That was why Unions started in Transportation, A seniority board, a Dispatch Board, and of course electronics now help to manage everything every driver and every load. A lot companies do not have the dedicated runs like in the old days.
6) If any dispatcher every talks to a driver, and says "I NEED A FAVOUR" be prepared to return the favour and do it soon. Every body has a long memory, especially when they did you a favour.

DO YOUR BEST, BE PROUD OF WHAT YOU DO. IF THERE IS SOMETHING YOU DO NOT UNDERSTAND A DRIVER IS SAYING, ASK WHAT THEY MEAN UNTIL YOU DO UNDERSTAND. WHY CAN'T THEY DO THE LOAD? WHY CAN'T IT DELIVER ON TIME? WHY DID THEY GET STUCK AT THE BORDER? WHY DID THEY DELVIER THE LOAD TO THE YARD AND NOT DIRECT? WHY ARE THEY LATE FOR PICKUP? WHY DO THEY NEED DIRECTIONS FROM US? WHY CAN THEY NOT FIND THE CORRECT TELEPHONE NUMBER FOR THE CUSTOMS BROKER? HOW CAN WE HELP THE DRIVERS.

Listen, Learn, DIGEST and remember SOCRATES said "THINK BEFORE YOU SPEAK SPEAK BEFORE YOU ACT AND ACT BEFORE IT'S TOO LATE." There is at the end of the day, only one person we are trying to really make happy and who really pays the bills, that is the customer. The one who pays proper rates, knows what it costs to run equipment, The intricaces involved, and does not run and hide when there is a problem.

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I was at the Fifth Wheel Truck Stop in Bowmanville last week, gathering trucker opinions for my monthly Truck Stop Question column, when I happened across a trucker named Linda. At the time, she had only been in the business for about four weeks and we chit-chatted a bit about the question (Would introducing tolls on the 400 series highways push you to an alternative route? Look for it in the August issue of Truck News) before she was on her way.

But as I watched her pull out of the lot, I had a bit of a “huh” moment: I couldn’t remember the last time I’d interviewed a woman trucker for the column. I’ve been doing the TSQ for more than five years now and in that time I’ve probably interviewed about 500 truckers – and been denied by about 2,500 more – but I could probably count the number of women truckers I’ve encountered on my two hands. Where are you, ladies?

I know that there are PLENTY of women who work in the trucking and transportation industries, taking on roles as dispatchers, managers, logistics professionals, sales reps, insurance peddlers, recruiting specialists, you name it. But in terms of actual truck drivers, my experience has been excessively male-dominated.

And for the most part, I get that. It’s a “guy” job, if there ever was one, at least historically. It’s not the type of job that most parents are pushing their daughters (or sons, in many cases) into pursuing either. But I know that the women truckers are out there; the question is just where.

The going estimate on the number of women truckers in the industry is usually less than 10%, but for an occupation that boasts some of the highest numbers of employees in North America, that percentage really adds up.

Maybe it’s the venues I frequent. Maybe women truckers steer clear of truck stops more than I realize. Or maybe the sight of a trade journalist is enough to send them clamouring for their bunks. All I know is that in general, when I’m out conducting interviews with truckers, the ladies just aren’t represented.

But we’d like to you be and we’d like to hear from you.

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When talking to a large carrier earlier this week, we shared our thoughts on having to cut back staff, work harder and do more with less. Our experiences were surprisingly similar though he had thousands of employees and I had just shy of a dozen. Today’s management is extremely hands on and the people that make up our trimmed down teams are communicating better and operating at higher efficiency levels. At some point, things could start falling through the cracks, but right now most companies, big and small are getting the job done right with fewer hands.

I think it’s great that big business can find their inner small enterprise...even if it took a recession to do it. Wouldn’t it be super if corporations could emulate these small business attributes as they add numbers to their ranks, in a recovering economy:

1. Keep politics and gossip out of the workplace
2. For the most part, have the left hand know what the right hand is doing
3. Don’t spend your day putting out fires by having the right people on board who can prevent them
4. Know people by name and encourage a team atmosphere
5. Don’t waste time pointing fingers or placing blame
6. Initiate change swiftly and avoid a structure crippled by red tape and process
7. Spend less time “covering your ass” so you can “whoop-ass” instead
8. See lemons turn to lemonade daily... and at the end of each day stand
   proud (pun intended)

Lee’s quote for the day:

“The main reason I started my own business was at the time, I just didn’t know any better”

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I've called on hundreds of companies over my 22 year marketing career and have discussed strategic concerns with just about every size, mode and geographic focus possible within transportation. Many companies say they do a dozen things well and really do 1 or 2. Others have an extremely diversified menu but customers are unaware of the breadth of service provided. Both are immediate marketing concerns.

1. You typically have to win customers over one service at a time. Even though an integrated approach is the end goal for the diversified model, if you don’t establish the necessary rapport and trust first... the big sell is a hard sell.
2. By casting too wide a net with your marketing you run the risk of not catching anyone’s interest. If you can’t back up a statement with tangible evidence of expertise, your entire message can get grouped together as being unbelievable.
3. You don’t want customers confused about what your service offerings are and you also don’t want to hear the words “I didn’t know you did that” by failing to create the awareness of your full service offering. If you can, lead with your best service first and remember “It’s the steady rain that soaks.”
4. As a general rule, we find transportation providers have a core strength(s), a secondary focus and what we would typically call a value added or convenience sell. It’s important to weight these accordingly in your marketing so customers understand fully who you are as a company.
5. Most successful diversification is through a dedicated model, something that has been developed for a single customer with very specific needs. It won’t typically role out to your general customer demographic...so don’t market it that way.
6. Decide who you are. Are you better suited as a handyman that does a host of things pretty well? Or is what you do a craft, with a more select target that’s tough for others to duplicate. Both have value. You need to make sure there is alignment between your skill set and your targeted market.
7. Markets change. Regardless of your business model, if what used to be the volume of your activity is shrinking, maybe it’s time to bring one of those secondary services front and center. As an example, what represents 50% of our market strength today (websites and branding) was only 5-10 % of our mix 4 years ago.
8. From listening to recent shipper panels, they want stability, service commitments, information exchange and relationships. It won’t be just about price going forward… they know the landscape is changing and that shrinking capacity is on the horizon.
9. Reset your thinking soon, as no one can beat you down any further on price. The value, innovation and focus you have going forward will dramatically shape your road to recovery...proceed with caution, and confidence!

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July 2010
Ray’s Rules for Dispatchers, part 1

Hello folks hope all is well, I thought I would go right to the group of individuals who are either the most loved or most despised in most trucking companies with this month’s article. I myself have been a dispatcher, just as most folks who start a trucking company from the ground up, you end up performing almost all of the jobs until some critical mass have been earned and you find that you are required to step back and play more of an administrative role. As with anything else in life, there were elements of the job I loved and there were parts I absolutely hated and there were ground rules that had to be followed.

I always believed that if you had 10 loads and 10 trucks to move in a day it could be done by anyone in the office but if you have 15 loads and 10 trucks you’ll need a good dispatcher. There is an enormously gratifying feeling of accomplishment when confronted with copious amounts of freight to move and a limited amount of trucks to move it on and at the end of the day it is all covered and everyone and everything is under control.

The relationship between dispatcher and driver is as complicated as any there is in this world, Dr. Phil would go nuts trying to get all the bugs out. It is often a nonstop game of push and pull, the driver wants to know 3 moves in advance where they are going to be sent and what the freight is and the dispatcher is trying not to say too much for fear that the next load falls through and they will be accused of lying, just to get the last load moved, a perfect example of being between the rock and the hard space. All this being said there are some simple rules that if followed can make the relationship work to both parties benefit.

Rule 1, first and foremost the foundation of the relationship must be solid, this is accomplished by knowing what each party’s expectations are of each other. If you’re a dispatcher of a company that specializes in 2-3000 mile turns and the driver your company is hiring for you to work with has to be home every other weekend to get their kids, guess what, this isn’t going to work. Spell out exactly what you expect of the driver including, notice of time off needed, any particulars of the freight that needs to be discussed, check in requirements, availability for work, to be dealt with respect etc. Get it in writing!
Rule 2, have the driver spell out exactly what their expectations are of you, they might need to have every second weekend off for family, they might have an upcoming series of professional appointments that need to be made, they might suggest that they expect to be dealt with respect. They might say that they have to get 10,000 miles a month in to be successful. Whatever the individual’s expectations are review them and make sure that you can accommodate them, because if the expectations of the individual cannot be met you are going to have an ongoing issue with this person until they finally quit or you fire them? Get it in writing!

Rule 3; be honest, all the time! This might seem like a no brainer but it isn’t for everyone, if you as a dispatcher decide it would be easier for you to B.S. a little to a driver to get an extra load covered you are playing with fire and are likely to looking for a new career shortly. Integrity and honesty has to be the cornerstone of your relationship with your drivers as soon as you get caught just once in a little white lie you’re done. This information will fly though the driver fraternity quicker that grass through a goose and you will not be trusted from then on and when you need that favor, because you’re really really stuck, forget it liar not gunna happen!

Rule 4; be consistent, with everyone! The last thing any driver needs is to think that some other driver is getting preferential treatment. Spread the sweet with the sour evenly throughout all of your drivers, do not favor anyone more that another on anything. This will cause dissension and mistrust and when you’re called on it and you probably will be, you’re done. Every driver or owner operator who has decided to spend their career at your company and ends up on your board deserves every opportunity you can grant them to be successful, remember that and you will be fine.

Rule 5; Never Never talk down to another driver or coworker! This one gets under my skin; everyone on this planet deserves the right to be dealt with, with respect, period! I was at a company last week and they have a dispatcher that the drivers hate, all of them despise this person, but the customers love this individual. What a croak, this person had never driven before and I don't have a problem with a dispatcher who hasn’t been on the road but, its walk a mile in my shoes time here folks. I have a million safe miles under my belt and I am proud of that fact, I also know that it can be a lonely lifestyle, I know what it’s like not to be available when things go sideways at home and your 2 days away, to have just left a receiver who really didn’t want what you had to deliver and for some reason felt it was his job to make you aware of his problem and all you want to do is get to your backhaul and get home etc etc. now it’s time to talk to my dispatcher and they’re going to talk down to me, I don't think so, not this cat, no how no way, I’m ready let’s dance dickhead!

I could go on with this article for a couple more pages, but I’ll give you folks some space to comment on my ramblings and give me a few of yours.

Who knows you might also want to distribute this to someone you think might be able to use it.
Safe trucking
Ray

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