Although rewarding, operating a trucking business can be a challenging endeavor. With tight timelines, increasing costs, and regulations, staying profitable is a difficult task. And with one small team, things can be even more complicated. You manage routes and drivers while dealing with compliance, maintenance, finances, and customer service, often with limited time and resources.
In this blog, we will examine the fleet management challenges presented by small trucking operations and offer solutions tailored to your specific situation, as well as the assistance available to you.
Table of Contents
Wearing Too Many Hats: The Small Team Reality
In large logistics firms, responsibilities are distributed across departments. One team handles dispatch, another handles compliance, while others may cover billing, HR, or maintenance.
In a small trucking company, there are probably one or two people who handle all aspects of the operation. You may be the owner, dispatcher, recruiter, and billing manager all at the same time! Eventually, having too much to do, you will make mistakes and miss opportunities. The work is even more challenging during high delivery times, DOT audits, or equipment failures, all of which are normal in the business. When you’re spread too thin, efficiency suffers, and so does your ability to grow the company.
Fleet Management Challenges Unique to Small Teams
Managing a fleet, even a small one, involves more than just scheduling trips. Here are some key fleet management challenges small teams often face:
1. Limited Administrative Support
With fuel reports, ELD data, IFTA filings, and driver logs, it doesn’t take long before administrative efforts consume multiple hours or days for a small team. More importantly, administrative matters can delay compliance with tasks, and any filing delays could lead to penalties from regulators or even more stringent reviews in the future.
2. Driver Recruitment and Retention
Recruiting qualified drivers is a challenge entirely. Retaining qualified drivers is an even greater challenge. Small businesses often face a significant disadvantage compared to larger carriers, as they struggle to compete on pay and benefits. Onboarding quality long-term drivers is challenging.
3. Compliance and Regulations
There are numerous and overwhelming compliance tasks, such as DOT regulations, insurance filings, safety audits, and vehicle inspections—all of which require constant attention. Even one oversight here could lead to fines or reduced safety scores in the future, which could impact the ability to secure good loads.
4. Technology Management
Mercedes-Benz once said that using fleet tools, such as fleet management software, GPS tracking, or accounting software, is beneficial until you realize how much you may need to develop to learn to use them effectively. Small teams often lack the resources necessary for the effective roll-out of onboarding new systems that impact operational efficiency.
5. Cash Flow and Operating Costs
With fewer trucks and less volume, your revenue can fluctuate more than in larger fleets. A breakdown, late invoice, or fuel price spike can have a greater impact when there is little to no buffer in the bank.
The Cost of Doing It All Alone
Many new trucking entrepreneurs believe they can handle everything in-house, thinking it will save them money. While this is true for some things, often doing things in-house costs significantly more in terms of money, stress, and time (and possibly dollars).
This is why it is crucial in this industry to know how to start a trucking business. Suppose you start with a solid foundation, a detailed compliance plan, and professional advice. In that case, you will reduce the chances of making a mistake that you will regret later on, and you will be more efficient in managing your operation from day one.
Smart Solutions for Small Fleet Owners
While the challenges are real, there are several ways small teams can overcome them:
1. Farm Out Back-Office Work
Utilizing a third-party subject-matter expert to manage your licensing and compliance filings, IFTA reports, etc., can decrease potential risk and offer you some freedom from the obligations of rules and regulations that accompany being a trucking authority. These experts are familiar with the laws and regulations and stay up-to-date on any changes, so you don’t have to worry about staying informed.
2. Invest in Scalable Technology
Find fleet management software that is user-friendly for your current level of operation but also scalable to grow with your company. Even simple software products can track loads, maintain equipment, and assess driver behavior.
3. Standardize Your Paperwork
When creating a daily trip report, maintenance report, driver onboarding document, etc., use a checklist that you will follow each time. This ensures a uniform report that you can rely on, which is as accurate as possible. By standardizing your reports, you minimize errors, ensuring that when you retain them for audit, they are consistent and precise.
4. Recognize Good Drivers
A small company can offer a personal relationship with a driver. Respect your drivers, communicate effectively and openly, and give your drivers opportunities to be flexible when it makes sense for you as well. If you build strong relationships with your drivers, you will also improve their retention and reliability.
5. Plan for the Unexpected
Have a plan for breakdowns, missed loads, or regulatory issues. That means maintaining a modest emergency fund or having a trusted service partner for quick repairs or legal advice.
Why Getting the Right Help Matters
Running a trucking business as a small business isn’t impossible, but it is undoubtedly more challenging without the proper support. Companies such as Personal Truck Services will help owner-operators and small fleet owners manage the business side of trucking more effectively.
We can assist you and your small team and guide you through the process of starting a trucking business legally and professionally. Either way, when you can get expert help, you can take some of the tension off your small team. As a result, you and your team can explore ways to expand your routes, enhance customer service, and strategically grow your fleet.
Final Thoughts
While small trucking companies may play an essential role in the greater logistics ecosystem, a lot can go wrong when you’re managing a fleet. Between regulatory compliance issues and staffing questions, it can be challenging to bring everything together with a small team.
That being said, you can face those challenges head-on and keep the wheels turning with good decisions, reasonable priorities, and great partners in the industry.
For anybody new to the industry or feeling inundated, speaking with professionals who already know the landscape may be the best move for you. In some cases, seeking out professionals may be the most intelligent consideration you could make.
