The cold chain logistics game can be brutal at the best of times, so how do you survive quarter after quarter and keep yourself profitable in such a competitive industry? Here we offer some simple tips to help make your transportation business more profitable as the years roll by.
Speak to your customers
It sounds so simple, but many carriers never think to speak to their customers and ask them how they could improve their service. Yes, they may respond accordingly if they receive a bunch of complaints, but its nonetheless very easy to become complacent and accept your business’s operations as “just the way it is”. Instead, be more proactive in speaking to your customers and finding out if there is a way that your logistics services could be improved. There are often little things that drive your customers away to competitors over time, so be sure to discover these things ahead of time.
Don’t forget to advertise
Once you’ve got a few connections established and you’re completing regular runs with your fleet, it can be easy to forget about acquiring new customers and growing your business. Assuming that you are adequately equipped to keep your current customers happy while acquiring new customers, you should continue to advertise your services and chase up any leads, helping to bring in new business. When advertising, consider the likely projected ROI and consider what channels are most suitable for different types of clients, especially within the B2B logistics space.
Get rid of bad drivers
When you’re hiring new drivers for your business, you can only use an estimated guess to try and gauge how good they’re going to be at their jobs. However, once you have hired them, if they are not pulling their weight at the company, do not be afraid to show them the door. Inefficient, slow, and lazy drivers are going to make your fleet less effective overall, dragging down the efforts of your better drivers and having a negative effect on your profitability and customer satisfaction rates overall. The more good drivers you can accrue for your fleet, the more profitable and efficient your fleet will be overall.
Save money in small places
Every little helps, and this is especially true when it comes to saving money. If you’re trying to make your carrier more profitable, maybe you should begin by cutting costs in other areas, assuming that they won’t negatively affect your company’s performance. For instance, many transportation companies pay extortionate insurance premiums, when they could greatly reduce their running costs (and put the money to better use) if they renegotiated their insurance deals when the renewal period comes around.
So there we have it! There are plenty of ways to make your carrier fleet more profitable, from investing in better equipment to improving staff efficiency with training programs. Whatever route you decide to go down, remember to be flexible and dynamic, continually adapting to the industry around you and staying one step ahead of the competition!
