Posts

Everything You Need to Know About Transportation Management Systems

, /by

In today’s fast-paced and competitive logistics landscape, freight carriers face increasing pressure to deliver goods efficiently, cost-effectively, and on time.  

 

As the complexity of the transportation industry grows, so does the need for advanced tools to streamline operations and maintain a competitive edge. For many companies, the solution is a Transportation Management System (TMS).  

 

Keep reading to find out how an effective TMS not only simplifies the intricacies of route planning, load optimization, and compliance management, but also enables trucking companies to make significant improvements in efficiency, cost savings, and customer satisfaction. 

 

What is a TMS? 

Simply put, a Transportation Management System is a software platform designed to help businesses manage their transportation operations more efficiently.  

 

It is often used by any company that needs to ship, receive, or transport goods, and it provides visibility and control over the entire transportation process. A TMS can help to streamline logistics, reduce costs, improve delivery performance, and enhance customer satisfaction by providing real-time visibility and algorithm-based route optimization.  

 

There are a wide range of TMS platforms available, each offering unique solutions depending on the price level and technological capabilities. Because every carrier has different needs and factors to consider, there is no “one size fits all” strategy in choosing the right TMS platform.  

 

Key Features and Benefits of a TMS 

Before deciding which Transportation Management System is the right fit for your team, it is important to consider which features would be most beneficial. These are some of the key features of many TMS platforms, and the ways they can aid a transportation company.  

 

Route optimization is a core feature of TMS platforms that calculates the most efficient routes for deliveries, considering factors like traffic, weather, fuel consumption, and delivery windows. This feature can help reduce fuel costs, shorten delivery times, and enhance driver satisfaction. 

 

Load planning and consolidation allows companies to maximize the utilization of truck space by optimizing the load planning process. It suggests the best way to consolidate freight into fewer loads. By utilizing this feature, companies can cut costs, improve efficiency, and reduce environmental impact. 

 

Freight audit and payment features help to automate the process of auditing freight bills and managing payments to carriers. The system ensures that invoices match contract rates and services. This TMS tool can help carriers to reduce errors, streamline payment processes, and improve financial accuracy. 

 

Real-time tracking and visibility are more important than ever, as consumers increasingly expect to know exactly when they will receive their goods, and where they are coming from. Many TMS platforms provide real-time tracking of shipments, allowing both the company and customers to know where goods are at any given time. This feature is helpful to provide better customer service and catch potential issues with freight before they become worse. 

 

Analytics and reporting tools are typically included in TMS software, which can help companies track key performance indicators (KPIs) and make data-driven decisions. These tools can help improve decision-making processes, identify inefficiencies, and reduce unnecessary operational expenses.  

 

Compliance management is essential for every carrier and CDL driver, and TMS systems can  

ensure that all transportation activities and employees comply with federal, state, and local regulations. This can include managing hours of service through electronic logging devices (ELDs) to reduce the risk of legal issues and fines and improve driver safety.  

 

Challenges and Considerations  

Just like any new technology, there are important considerations to make before investing in a Transportation Management System. 

 

  • Implementation costs: While TMS can lead to long-term savings, the initial investment in software and training can be significant. 

 

  • Integration with existing systems: To avoid further expenses or costly delays, it is essential to ensure that the TMS can integrate seamlessly with other systems, such as ELDs.  

 

  • User adoption: Investing in a TMS platform will also require an investment in comprehensive training for any employee who utilizes the service. If the platform offers a limited demo or trial period, it is beneficial to first test the user interface and experience.  

 

 

Looking to discover more of the newest technological advances and trends in the transportation industry? Be sure to check out the rest of our Employer Blog posts and connect with us on social media. 

Strategic Driver Recruitment Budgeting for 2025

, , /by

As we approach 2025, CEOs in the trucking industry face a critical challenge: how to effectively budget for driver recruitment in an increasingly competitive and technologically advanced landscape. The ongoing driver shortage, coupled with evolving recruitment technologies and changing driver expectations, necessitates a strategic approach to recruitment budgeting. This article aims to provide CEOs with insights and strategies to optimize their driver recruitment budgets for 2025. 

 

Understanding the Current Landscape 

 

The trucking industry reportedly needs more than 1 million new drivers over the next decade to meet demand and replace those leaving the industry. The ATA expects the current shortage of 78,000 drivers to more than double by 2031, putting unprecedented pressure on recruitment efforts. Moreover, the cost of recruitment has been steadily rising, with the average cost-per-hire in the trucking industry is between $5,000 to $10,000 according to recent industry reports. 

 

Key Components of a Strategic Recruitment Budget 

 

  1. Technology Investments

 

In 2025, technology will play an even more crucial role in driver recruitment. Your budget should account for: 

 

  • Applicant Tracking Systems (ATS): Your applicant tracking systems can streamline the application process and help manage candidate relationships more effectively. Be sure that your ATS includes a CDL compliant application.  
  • Technology enabled candidate matching platforms: These can significantly reduce time-to-hire by quickly identifying the most suitable candidates. 
  • Mobile-friendly application processes: With more job searches happening on mobile devices, ensuring your application process is mobile-optimized is crucial. 

 

When budgeting for these technologies, consider not just the upfront costs but also ongoing maintenance, updates, and training for your team. 

 

  1. Marketing and Advertising

 

The shift towards digital recruitment strategies is likely to continue. Your 2025 budget should reflect this: 

 

  • Analyze the results across all your recruitment marketing sources, scale back to the few that produce the greatest return on your investment, and increase the allocation for targeted campaigns across those sourcing channels 
  • Focus on improving how you advertise your employment value proposition to attract new drivers to the industry 
  • Maintain a balance with traditional methods that still yield results in certain demographics 

 

  1. Recruiter Training and Development

 

As recruitment processes evolve, so must your team. Budget for: 

 

  • Upskilling programs focused on new technologies 
  • Training to improve the candidate experience and engagement 
  • Courses on data analysis to make better use of recruitment metrics 

 

Investing in your recruitment team can lead to more efficient processes and better hiring decisions, potentially reducing long-term costs. 

 

  1. Retention Initiatives

 

Remember, an effective recruitment budget also includes retention efforts. Consider allocating funds for: 

 

  • Comprehensive onboarding programs 
  • Ongoing training and development opportunities 
  • Regular driver satisfaction surveys and feedback mechanisms 

 

Industry data shows that the cost of replacing a driver can be up to 30% of a driver’s annual earnings, making retention a crucial part of your overall recruitment strategy. 

 

ROI Metrics to Guide Your Budgeting 

 

When planning your budget, ensure that you have robust reporting capabilities that will allow you to focus on these key ROI metrics: 

 

  1. Cost per hire: Track this closely and aim to reduce it over time through more efficient processes. Focus on results, not activity; on quality, not quantity. Cost-per-lead is not a valuable measure. 
  2. Engagement and Funnel Conversion: Understand how, when, and why drivers are progressing through your recruitment funnel to improve your candidate experience and ability to convert interested drivers to hires. Examine your interest to hire ratio. 
  3. Time to hire: Faster hiring means trucks get on the road quicker, directly impacting your bottom line. 
  4. Quality of hire: Monitor performance metrics of new hires to ensure your recruitment efforts are bringing in the right talent. 
  5. Retention rates: Higher retention means lower long-term recruitment costs. Understanding voluntary turnover reasons and tenure time can provide you with valuable insights to improving driver retention.  

 

Forecasting and Flexibility 

 

Your 2025 budget should be data-driven but flexible. Use historical data and industry projections to forecast your needs but build in contingencies for market changes. Consider scenario planning for different economic conditions—what would your recruitment needs and strategies look like in a booming economy versus a recession? 

 

Leveraging Partnerships 

 

Consider allocating budget for strategic partnerships that can amplify your recruitment efforts: 

 

  • Recruitment partners with specific industry expertise 
  • Driving schools for a pipeline of new talent 
  • Industry associations for networking and shared resources 

 

These partnerships can provide access to a wider talent pool and potentially reduce your overall recruitment costs. 

 

Balancing Technology and Human Interaction 

 

While technology can dramatically improve efficiency, the human element remains crucial in driver recruitment. Your budget should reflect a balance: 

 

  • Invest in technology for initial screening and matching 
  • Allocate resources for personal outreach to top candidates 
  • Ensure your recruiters have time for meaningful conversations with potential hires. A recruiter’s time should be spent on the most valuable part of the process, conducting the assessment and selection, not on administrative tasks.  

 

Finding the right balance can lead to more effective recruitment and higher-quality hires. 

 

Legal and Compliance Considerations 

 

Don’t overlook the importance of compliance in your budgeting: 

 

  • Allocate funds for thorough background checks and drug testing 
  • Stay updated on changing regulations and budget for any necessary adjustments to your processes 

 

Failing to comply with regulations can lead to significant costs and reputational damage, making this an essential part of your budget. 

 

Measuring Success and Adjusting Strategies 

 

Your recruitment budget should not be set in stone. Plan for regular reviews and adjustments based on performance: 

 

  • Identify key performance indicators (KPIs) aligned with your company’s goals 
  • Schedule quarterly budget reviews to assess performance against these KPIs 
  • Be prepared to reallocate funds based on what is working and what is not working  

 

This agile approach allows you to optimize your budget throughout the year, ensuring you’re getting the best return on your recruitment investment. 

 

The Strategic Imperative of Recruitment Budgeting 

 

As we look towards 2025, it’s clear that strategic driver recruitment budgeting is more than just a financial exercise—it’s a key differentiator in a highly competitive industry. By focusing on technology, balanced with the human element, and remaining flexible and data-driven, you can create a recruitment strategy that not only fills seats but builds a stable, satisfied driver workforce. 

 

The most successful companies in 2025 will be those that view driver recruitment not as a cost center, but as a strategic investment in their company’s future. By carefully allocating resources, leveraging technology, and continuously measuring and adjusting your approach, you can build a recruitment strategy that gives your company a significant competitive advantage. 

 

As you plan your 2025 recruitment budget, consider how each allocation can contribute to not just hiring drivers, but building a resilient, high-performing fleet. In doing so, you’re not just preparing for the challenges of 2025—you’re positioning your company for long-term success in an ever-evolving industry. 

 

Remember, in the world of trucking, your drivers are your most valuable asset. A well-planned, strategic approach to recruitment budgeting is one of the most important investments you can make in your company’s future. To win in this industry you always need to be recruiting, even when you are not hiring.  

 

What is Digital Freight Matching?

/by

What is Digital Freight Matching?

The chances are that if you’ve worked in the trucking industry within the past few years you’ve heard of digital freight matching.  

 

This fast-growing integration of technology with traditional freight matching methods has caught on quickly and proved to be more than just the newest trend in transportation and logistics. Digital freight matching (DFM) has become the go-to method of many carriers to efficiently connect their drivers with available freight while saving time on paperwork, optimizing space, and cutting costs.  

 

Keep reading to find out what digital freight matching really is, and how AI technology and machine learning could save your company time and money when connecting with shippers. 

 

How does digital freight matching work? 

Simply put, digital freight matching is a technology-driven approach to connecting shippers, or those who need to transport goods, with carriers and other transportation companies. Unlike traditional methods, which involve manual processes and third party intermediaries, DFM leverages AI and machine learning to streamline the freight matching process. 

 

Although all modern freight brokerages and third-party logistics (3PL) businesses use technology to optimize the process, DFM is different in that it takes a technology-first approach instead of the traditional emphasis on human interaction and expertise.  

 

Traditionally, 3PLs have assisted carriers by taking information from shippers about available loads and connected them with drivers looking to carry freight. This included lengthy and potentially challenging manual processes such as booking, load posting, paperwork, and confirmation calls.  

 

Instead, DFM now automates these processes by using predictive analytics rooted in AI to optimize matches for service, efficiency, capacity, and cost. DFM platforms automatically connect different parts of the supply chain, making the process more efficient and responsive for all parties involved.  

 

Shippers begin the process by uploading important job details to a DFM service, including proposed rate, the weight of the freight, and the required pick-up and delivery points and dates. AI-generated algorithms then evaluate the fleet capabilities of existing users to find potential matches. Suitable carriers can then open the DFM’s load board, evaluate the job description, and easily confirm within the platform.  

 

Since most DFM platforms are available as mobile apps or online websites, this provides a single access point for every step of the matching process.  

 

What are the benefits? 

The main draw of DFM is the ability to streamline the entire freight matching process. Companies offering DFM help shippers share and advertise their loads to a wider range of drivers, while optimizing and accelerating the connection between shipper and carrier.  

 

DFM technology also integrates seamlessly with Transportation Management Systems (TMS) and Enterprise Resource Planning (ERP) systems, making scheduling more efficient and reducing the time spent on administrative tasks.  

 

Top DFM software can incorporate quoting, payment, data tracking and a range of other services into a single platform, allowing carriers and drivers to maximize load utilization and lower costs by minimizing empty backhauls. 

 

Are there any drawbacks? 

As with any other technological advancement, there are some important considerations to make before deciding to invest in a DFM platform.  

 

Initially integrating a DFM service into a carrier’s existing freight matching methods can be difficult, especially when considering the price of a program and any training required for the transition.  

 

DFM platforms typically offer various payment models, ranging from a monthly or annual subscription-based service to freemium models with only basic features available for no cost. Although the overall cost can potentially be higher than the fees required for 3PLs and other matching services, it depends on the quality and abilities of the selected DFM platform.  

 

Another important factor is the inherent dependence on technology of any DFM service. Utilizing DFM requires internet connectivity, software platforms, and an understanding of the AI-generated algorithms. While the quality and ease of user interface has continued to improve in recent years, downtime, system glitches, and viruses can still disrupt operations and cause delays.  

 

The top concern for many carriers deciding whether or not to make the transition to digital freight matching is how to strike the right balance between automation and personalized service. While algorithms enhance efficiency, they may not account for all variables, making human judgment still crucial for complex scenarios and exceptions.  

 

Many clients and drivers will still appreciate some personalized services, so be sure to provide a human voice and perspective when necessary.  

 

 

 

For more information on evolving trends in the trucking industry and how to keep your carrier’s services ahead of the curve, remember to follow us on social media and stay up-to-date on our Employer Blog posts.  

Dashboard Cameras: The Pros and Cons

, , , /by

One topic that has become increasingly controversial in the trucking industry is the use of dashboard cameras. Everyone from drivers and carriers to industry experts has an opinion on the use of these cameras and whether they provide any real benefits. For some, the argument is in favor of dashboard cameras because they can increase protection for the driver and company, while reducing liability. Others argue that dashboard cameras infringe on drivers’ privacy and create distrust between drivers and their companies.  

Pros: Liability and Protection 

People who are pro-dashboard camera believe they benefit drivers by adding a level of safety and increased protection from liability during accidents.  

As truck driver Steve commented on our Facebook poll, “Outward facing cameras are great. They can be used to prove fault in accidents.” 

Even though most people do not realize it, the majority of vehicular crashes involving trucks are actually caused by passenger vehicles. Two independent studies by The University of Michigan Transportation Research Institute and the National Highway Traffic Safety Administration (NHTSA), found that cars are at fault from 71-91% of the time in fatal crashes with trucks. While drivers are often not at fault for the crashes, they, as well as the carriers, often end up being held liable for the accident. For trucks with outward facing cameras, they are most easily able to prove their case and liability status based on footage from the incident.  

They provide a constant eye in the case of danger and damage. 

Dashboard cameras are an important option for protecting truck drivers from wrongful allegations which reduces costs and liability for carriers. With such great benefits, many carriers are opting to install dashcams. 

Cons: Privacy and Micromanagement  

While dashboard cameras can improve safety and protection for drivers during accidents, many would argue that they are an invasion of privacy, especially inward facing cameras, as many drivers’ trucks are also their homes.  

As truck driver GS Bass told us, “I feel the cab is my personal space, private, my domicile while working. I know companies can dip into any inward camera and observe.” Similarly, another driver, Eric, observed, “This is my home when it’s not moving.” 

Most drivers live in their trucks while making hauls, so not only is it their office, but it is also their living room, kitchen, and bedroom. The use of dashcams takes away from drivers’ rights to have privacy and makes their every move available to the carriers, as well as anyone else you could access the camera’s footage. With that said, drivers would have no room to even scratch their nose without someone watching. 

Another argument against dashboard cameras is micromanagement of a driver’s decisions. Let’s say you have a trucker who has been a great driver for over 10 years and has vast experience making sound driving decisions. Dashboard cameras allow the carrier to scrutinize and judge every decision a driver makes, without understanding its nuances and consequences. 

Steve told us, “They make driving less safe because we now drive for the camera. If a traffic light turns yellow and you have to brake even minutely hard, it causes the camera to go off. We then get called in and coached on hard brakes. This coaching gets put in your record and you accumulate points for it. If someone pulls out in front of you, and you hit the brakes too hard, points. If you’re listening to the radio too loud when the camera comes on, or taking a drink of coffee, or looking out your side windows (like checking your mirrors), points.” 

For drivers, this can create frustration as someone who has never driven a rig tries to tell them how to do so.  

A Potential Solution  

While proponents and opponents of the argument each make valid points, there is middle ground that can be reached on the topic of dashboard cameras. Many truck drivers would be amenable to forward-facing cameras if they don’t have to deal with the inward cameras. The benefits of forward-facing cameras are undeniable to both truckers and carriers. If carriers take this too far with inward facing cameras, they will face resistance because of privacy concerns. 

Another consideration is how much flexibility and freedom carriers choose to give individual drivers. If a carrier decides to institute a dashboard camera policy without consulting with their drivers, they will likely see extreme resistance.  

On the other hand, if a carrier allows drivers to make their own decisions about dashboard cameras, and just educate them on the pros and cons, they may find that more and more drivers will voluntarily elect to install cameras.