There are a lot of tough businesses to make a living in. Perhaps one of the toughest is the transportation industry. Transporting valuables, raw materials or other cargo can be very challenging. There’s a lot that can go wrong. Making deadlines and making sure cargo is safe can sometimes be difficult to achieve. Still, it is possible to make a living in this industry. For one, there are specific strategies you can use to boost your company’s revenue.
Use Freight Factoring
If you transport products or materials cross country in trucks, one thing you should certainly be taking advantage of is freight factoring. Factoring, in this context, is the selling of your invoice for transporting and delivering goods to a third party. This solves the problem of having to wait up to 40 days to receive payment for those services. Trucking factoring can help your business stay afloat by allowing you to obtain that needed revenue in a more timely fashion.
Focus on Per Truck Productivity of All Your Trucks
Raising revenue requires raising the productivity of your fleet. One way to do this is to examine the per truck productivity of each truck in your fleet. If you have trucks that are simply sitting on your lot and not delivering cargo, you are losing money. You may also have problem employees that are wasting your time and your money. If you don’t track productivity, you may be oblivious to this fact.
Implement a Transportation Management System
If you want to increase the revenue you obtain from your fleet, something you should certainly invest in is a transportation management system. This is a software based platform that allows you to streamline the process of shipping products across the country. It, for example, can allow you track freight while it’s in transit to the end destination. If there are delays or other issues, you will be alerted immediately. Such a system can increase efficiency and allow you to see how you are making as well as losing money.
Expand Your Horizons
One mistake many transportation companies make is getting stuck in a certain niche. If the majority of your clients are grocery stores, you may only end up transporting food products. However, you may find that some of your trucks never leave the lot. Consider other options and track trends to find new partners and freight categories your business can attend to. Doing so can maximize your revenue.
The transportation business can be a hard business to make money in. However, if you make the effort to increase efficiency, obtain payment quicker and expand your options for customers, you can expand your revenue exponentially.
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