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These are some common statements that most Trucking USA companies face. Ever wondered why???
Trucking companies play a key role in the development of trade across borders. However, the success of any trucking company depends on two factors, i.e. Man and Machine.
- Driver Retention
- Digital Logistics
A recent survey by the American Trucking Association reveals that the US market is facing a nearly 60,000 driver shortage, and the numbers will soon reach 1,00,000 by the end of 2022. Further analysis shows that the number of drivers who quit within the first three months of their joining is more than 30%; the ones who leave within the first six months is more than 50%, and the requirement for new drivers is always increasing at alarming rates.
Drivers quitting at the very beginning of their careers seem to have dented the company’s reputation in the market with dropped profit margins and turnover. Onboarding a new driver can cost a company more than 8,000$. Adding to this is the time spent training the driver on the company’s vehicle specs, delivery routes, and understanding of the company’s working style. After all, when the driver leaves within 6 months of joining, it proves to be a complete loss.
These numbers are alarming for trucking companies as they know the importance of retaining drivers. Before we understand how to address the problem, it is important to understand why it exists.
Here is a simple “Why-Why Analysis to drivers quitting jobs.”
3 aspects define Driver Retention:
- Pay
- Efficiency of work
- Dignity at work
- Lack of digitalization
- Poor Pay: The drivers feel that the salary they get and the effort they put in are underpaid. Therefore, most of the drivers quit. On the other hand, the drivers hired as replacements quit in a short span because the trucking companies pay less to new drivers than the drivers they replace.
- The efficiency of work: Driving trucks calls for a lifestyle change. The long travel hours and the risks involved in the traditional routing process can be taxing for drivers.
- Dignity at work: It’s necessary that trucking agencies look at their drivers as their representatives and not as mere drivers.
- Lack of Digitalization: The drivers feel stressed handling all the paperwork, customer management, and payment process manually.
The above is the holistic view of the problem; In this article, you will understand how technology in different formats can impact drivers’ efficiency and the company’s paying capacity.
Here are some technological insights into what is needed for logistics and transportation companies to retain drivers:
- The first and the most effective tool is establishing a good Routing App. What is a routing app? A good routing app is an interface created based on the driver’s inputs of all the details in terms of driving time, type of terrain, the kind of fines and traffic delays and more the drivers face in all the routes they travel. Creating this app will ensure that the trucking agency, the customer, and the driver are on the same page regarding delivery deadlines. In other words, the drivers are relieved from the stress of meeting unrealistic delivery timelines, which causes working overtime and accidents.
- With technology growing leaps and bounds, it’s time to move from the manual process and plug-in RPA into logistics. RPA in logistics management helps increase efficiency and productivity, saves time, reduces errors, and increases company profits. For a 3PL provider based out of the US, Cognine helped implement the RPA platform that automated order creation, rate lookups, and payment status updation without any manual intervention, which 8FTE earlier performed.
- Automation of operations has become the need of the hour. Cognine built a natural language processing(NLP) engine that made a fleet manager’s day easier in data extraction and management. The model developed processes 99% of the rate requests, with the AHT being reduced from 500 sec to less than 50 sec.
- Pay the driver his worth. Wondering how to measure his performance??? That’s where embracing Driver Management App helps you track and measure driver performance. We help trucking agencies develop an effective DMA to look at the drivers’ productivity, track settlements, plan their routes, upload dispatch expenses, e-sign BOLs, and send automatic load status notifications to customers.
Conclusion
Yes, Automation and Digitization are the keys to improving the process and retaining drivers. But, choosing the apt options that suit your organization is the key to making the best of the automation. With a thorough understanding of the logistics and transportation industry, Cognine constantly strives to create customized business solutions.
We consider the drivers’ and organizations’ perspectives to ensure that the technology makes their lives easy.
With Cognine’s intervention, it is always a win-win solution.