Scaling smarter: Why trucking companies are prioritizing operational efficiency
To successfully take on new business and work with top brands, carriers need to efficiently scale operations without overburdening their current resources. But as margins tighten and delivery expectations rise, trucking companies are tasked to do more with less. Whether in routing, communication or back-office operations, even small operational inefficiencies can directly impact the businesses’ ability to scale. This means operational efficiency as a practice has rocketed to the top of carriers’ priorities as they race to grow their operations to accommodate top shippers.
But achieving operational efficiency isn’t that simple, and scaling operations can stall in the face of common problems that cause delays and bottlenecks. Without the right strategies and solutions, teams can spend valuable hours chasing down updates, reconciling documents and responding to avoidable exceptions, compromising the scalability of the business as a whole.
In this blog, we’ll look at the challenges that stand in the way of scaling operations for trucking companies, and how persistent problems can be solved with the right mix of processes, people and technology.
Moving past inefficient manual processes
Today, many carriers still rely on spreadsheets, emails and other manual processes to manage critical business functions. Teams waste time rekeying data, working around multiple partner portals and tracking down missing documents, all of which cut into margins and take dollars away from the company’s bottom line.
Top carriers are now replacing outdated processes with digital workflows that connect shippers and data in real-time. Systems that reduce manual touchpoints and minimize errors allow businesses to more easily onboard customers and keep operations synced with their partner network.
An EDI solution can help trucking companies reduce manual processes by automating the exchange of load tenders, invoices and delivery confirmations between carriers and a network of retail and manufacturing partners. This reduces costs associated with time-consuming emails and data entry, allowing the business to operate with enough efficiency to confidently take on new shipping partners.
Navigating complicated billing requirements
Carriers that support a wide range of shippers know each has its own invoicing rules, formats and compliance needs. What works for one might not be acceptable to another, forcing carriers to maintain multiple templates, schedules and workflows. As carriers grow their partner network, the operational complexity grows with it, ultimately cutting into cash flow and damaging the financial health of the business.
But without automation, that level of detail introduces operational risk; incorrect or late invoices, disputed charges and delayed payments are common costly challenges that restrict revenue. A single mistake like sending an invoice in the wrong format or missing a required field can delay payments for weeks.
However, carrier technology solutions can streamline cash flow by enabling automated, rules-based billing that adapts to each customer, meaning carriers no longer have to manage a tangle of custom processes. Instead, they can standardize and automate billing across their entire customer base, allowing them to scale operations as they take on new business.
Relying on expensive employee hours
As they grow, many carriers discover a frustrating truth: adding more customers often means hiring more people just to handle the increased volume of paperwork and communication. What should be a success story quickly becomes unmanageable as operational costs rise alongside number of shipping partners.
Scaling by constantly expanding workforce alongside customer count is both inefficient and unsustainable. Labor costs quickly eat into margins while new hires require training, oversight and time to ramp up—and that’s not even considering the current challenges with finding and hiring talent.
Rather than building out larger teams to handle repetitive tasks, carriers are moving toward smart systems that offer the efficiency they need to handle additional customers. Automating document exchange, standardizing processes and implementing real-time data visibility allows carriers to support higher volumes and more complex operations without proportionally increasing headcount.
Without addressing the problems created by manual processes, complex billing and dependence on large workforces, it becomes impossible to operate a carrier business at scale. But proven solutions can help carriers grow without struggling with common challenges. Problems with billing, data exchange or process automation can be effectively managed with a combination of the right technology and team.
Want to see how SPS helps carriers achieve that combination? Read more about SPS for 3PLs here and discover a single-point solution that integrates seamlessly with your TMS, so you can elevate your efficiency to new heights.
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