Success in the freight industry is determined by revenue. As such, company drivers, carrier operators, and fleet owners need to know how best to optimize their revenue to grow their operations successfully. Scaling margins requires increased freight volumes, better rates, and process streamlining. You also need to be flexible and have good organizational and planning skills.
Although running a fleet can be challenging, you can improve your revenue and bolster your bottom line.
Here are a few ways to ensure you make more money as a carrier.
Reduce Fuel Costs
As an owner-operator, it’s paramount to reduce what it costs to acquire diesel and other fuel products. Fuel is one of your most significant expenses; cutting fuel costs will ensure you save more money. Some ways to save on fuel include:
- The removal of bulky side mirrors and rigs on your fleet of trucks: This will reduce drag and save on energy. When your racks are more streamlined, they will take up to 20% less fuel. You can also add side skirts and aerodynamic fittings.
- Plan your route:Optimize your shipping routes to reduce road costs. Driving down the scenic highway is great, but every mile of the road costs you extra money. Planning the most efficient route between each city pair can save you fuel costs. The longer you stay on the road, the higher your expenses.
- Join a fuel card program: Joining a Fuel Card program helps give you consistent savings beyond savings made at the pump. This provides the proper revenue advantage that your fleet needs. Fuel cards offer additional features like fraud and identity theft, controlled employee spending, tracking your business’ online spending, and the provision of detailed reports.
- Watch your speed:According to the American Trucking Association, a truck traveling at 75 mph consumes 25% more fuel than a truck traveling at 65 mph. Driving within the speed limit helps save on fuel consumption. Going over the speed limit may get your load to your destination quicker, but the extra mph will cause an increase in fuel consumption.
- Reduce unnecessary idling:At night, many drivers tend to idle to climate control and accessorize in the cab. Statistics show that idling consumes up to half a gallon every hour. Reduce idling time and adopt auxiliary power units to help save on fuel consumption.
Reduce Deadhead Miles
Cut down on miles on the road without luggage. You incur fuel, meals, lodging, and travel expenses without making any money to offset any of the costs. You can reduce deadhead miles by organizing backhaul loads.
Backhaul may not pay as much, but it will help offset the costs along with some profit. With load board integration and an extensive network of brokers, vendors, and suppliers, you can find a customer who needs your services on the return trip.
Always plan ahead
Planning helps save you time and anticipate any eventualities. While planning won’t overcome everything, it will help avoid excessive miles, wrong turns, and congestion.
Carrier TMS’s one-stop dashboard lets you plan multiple trips, choose the best routes and choose the least expensive fuel stops allowing for more strategic decision-making and revenue.
Focus on the people because freight is a people’s business. Relationships make the freight industry go round. If you can create a long-lasting relationship and rapport levels with high-volume brokers, they are likely to call you first at freight availability. Your trucks will always be full and on the road.
Negotiate for the highest rates
Usually, you need to put in more hours to make more money, but there is a limit to this. It would be best to work smarter instead of harder. With vast and deep data insights, you will have all the information you need to broker the best deal. From load-to-truck ratios to truck activity, you can identify whether a specific load is favorable or unfavorable before committing to a deal.
Work with trusted brokers
Engaging with brokers you can trust will ensure that your drivers are paid appropriately and on time. Untrustworthy brokers tend to have unfulfilled payments and can default or delay payments.
Our carrier network only allows trusted brokers with a payment history to post freight. A trusted brokerage will enable you to build relationships with long-term partners and maintain your cash flow.
First come, first serve
Use all the resources at your disposal to ensure you are always the first to call on the best load. While getting the highest paying loads feels like an ultra-competitive sport, it’s the cornerstone for high growth and revenue among owner-operators. Invest heavily in a reliable and up-to-date load board.
The “best” load boards are no longer large lists of available loads across an entire region. The load board should go beyond just finding loads. It should actively provide valuable information and access to decision tools to help you be quick on the draw to get the loads you want with reliable brokers.
When evaluating any load board, consider:
- Is it mobile-friendly? The load board should be mobile-friendly; this shows that the underlying technology is modern, well-supported, and user-friendly. Boards that don’t have mobile platforms tend to be challenging to work with, even on traditional platforms.
- Is it comprehensive? If you leave a load board and bounce across different websites, you are not using the best platform. The best load boards should be comprehensive.
- Does it help with Fast Broker selection? Innovative load boards should help you quickly match with the best broker within minutes.
Make more money with Carrier TMS today
With Carrier TMS one of the industry-leading truck management systems, you can increase your revenue. The digital carrier platform helps dispatchers maximize a driver’s time on the road by leveraging advanced machine learning algorithms and data analysis. We also help you reduce back-office expenses, get better rates and drive profitability. Watch this webinar to optimize dispatch, scale trucking fleets and reduce overhead costs.