As gas prices rise and lean initiatives grow in popularity, fleet capacity is shrinking. Smaller logistics companies are closing, and due to driver scarcity and the inability to compete, they are not being replaced. With these smaller logistics companies going out of business, the overall trucking capacity available is lower which affects the whole logistics industry.
Growing logistics companies are coping with these changes by focusing on finding experienced and safe drivers. In this new landscape the drivers are more valuable than hard assets. The few logistics companies who have been successfully growing their capacity attribute much of that success to having a driver-focused culture: recruiting safe and experienced drivers, providing the opportunity to drive new equipment, and offering competitive compensation and lifestyle programs. The benefits of this type of culture reflect in reduced driver turnover and increased driver safety.
Low turnover and a strong safety program are important corporate and social goals for any successful logistics company, but this also helps improve a logistics company’s bottom line by reducing costs, contributing to keeping more trucks seated with drivers, lowering insurance and claims costs, and improving customer service.