Creating A Growth Strategy For Your Trucking Operation

Are you a small trucking companies looking to scale? If so, you may be wondering, “how?” In this post we’ll outline the steps for taking your fleet to the next level and provide examples of successful scaling from other major trucking companies to show you what works and what doesn’t.

Evaluate your current operations

The first step in developing a growth strategy is to evaluate your current operations. This includes reviewing your finances, your fleet, your routes, and your staff. You should identify any inefficiencies, bottlenecks, or areas that are limiting your growth.

Set clear goals

Once you have identified your current state, you need to set specific goals. Your objectives should be specific, measurable, attainable, relevant, and time-bound (SMART). For example, you may want to increase revenue by 25% in the next year, expand your fleet by five trucks, or add a new route to your operations.

Develop a marketing plan

To grow your business, you need to attract new customers. Developing a marketing plan is key to achieving this. You should identify your target audience and create a marketing plan that includes online advertising, social media, and email campaigns. It is crucial to have a professional website that showcases your business and services like Driverfly. Your website should be optimized for search engines and be mobile-friendly.

Expand your services

One way to grow your business is to expand your services. Consider offering additional services such as warehousing, cross-docking, or intermodal transportation. This can help you attract new customers and increase revenue.

Hire the right staff

As your business grows, you will need to hire drivers as well as additional staff to manage your operations. It is important to hire the right staff to ensure that your operations run smoothly. You should look for employees who have experience in the trucking industry and who are a good fit for your company culture.

Invest in technology

Investing in technology is an important part of scaling your business. You should look for software that can help you manage your operations, including dispatch, load tracking, and invoicing. This can help you automate your processes and reduce errors. You may also want to invest in telematics and GPS systems to improve the efficiency of your fleet.

Below we’ve compiled a few examples of successful scaling from megacarriers here in the US:

1. Schneider National

Schneider National is a large trucking company that has grown to become one of the largest in the world. The company has achieved this by focusing on technology, expanding its services, and investing in its employees. Schneider National has a strong culture and values, which has helped it attract and retain top talent. Here are some key factors that contributed to Schneider National’s growth and success:

1. Early Beginnings: Schneider National was founded in 1935 by Al Schneider with just one truck. The company initially focused on hauling agricultural products and evolved over time to meet changing market demands.
2. Diversification: Schneider recognized the importance of diversifying its services to adapt to shifting market dynamics. They expanded beyond agricultural transport to include services such as dedicated trucking, intermodal transportation, and brokerage services.
3. Technology and Innovation: Schneider has consistently invested in technology and innovation to streamline operations and improve efficiency. Their use of advanced logistics software, GPS tracking, and data analytics has enabled them to optimize routes, reduce fuel consumption, and provide better service to customers.
4. Customer-Centric Approach: Schneider has always prioritized customer satisfaction. They offer customized transportation solutions to meet the unique needs of their clients, which has helped build long-term relationships and secure repeat business.
5. Acquisitions: Schneider National strategically acquired several transportation and logistics companies over the years to expand its reach and service offerings. These acquisitions allowed them to tap into new markets and customer bases.
6. Driver Training and Retention: Schneider is known for its comprehensive driver training programs and a strong commitment to driver satisfaction. This has helped them attract and retain skilled drivers, ensuring reliable and consistent service.
7. Safety Focus: Safety is a core value at Schneider. They have implemented rigorous safety protocols, training programs, and equipment upgrades to ensure the well-being of their drivers and the public, which has contributed to their strong reputation in the industry.
8. Sustainability Initiatives: Schneider has also taken steps to reduce its environmental impact. They’ve introduced fuel-efficient technologies, alternative fuel options, and sustainability initiatives to align with evolving industry standards and customer demands.
9. Global Expansion: While Schneider is primarily known for its presence in the United States, it has expanded its services globally to meet the transportation needs of international clients.
10. Strong Leadership: Schneider National has benefited from strong leadership and a commitment to its core values, ensuring the company’s stability and growth over the long term.

2. Covenant Transport

Covenant Transport is a trucking company that has grown rapidly by focusing on technology and innovation. The company has invested heavily in telematics, GPS, and other technologies to improve the efficiency of its fleet. Covenant Transport has also expanded its services to include warehousing and cross-docking, which has helped it attract new customers. An in-depth list of factors is outlined below:

1. Strategic Acquisitions: Covenant Transport strategically acquired other transportation and logistics companies to expand its reach and service offerings. These acquisitions allowed the company to tap into new markets, gain a larger customer base, and diversify its service portfolio.
2. Diverse Services: Covenant Transport offers a range of transportation and logistics services, including long-haul trucking, regional transportation, dedicated services, refrigerated transportation, and brokerage services. This diversification enables them to meet a wide variety of customer needs and adapt to changing market conditions.
3. Customer-Centric Approach: The company has a strong commitment to customer satisfaction. They work closely with customers to provide tailored transportation solutions, which has helped build long-lasting relationships and secure repeat business.
4. Advanced Technology: Covenant Transport has invested in advanced technology and fleet management systems. These technologies help optimize routes, improve fuel efficiency, and enhance overall operational efficiency.
5. Driver Training and Retention: Like Schneider National, Covenant Transport places a strong emphasis on driver training and retention. They offer comprehensive training programs, competitive compensation packages, and a commitment to driver well-being to attract and retain skilled drivers.
6. Safety Focus: Safety is a top priority at Covenant Transport. The company has implemented rigorous safety protocols, ongoing driver training, and safety technology to ensure the safety of its drivers and the public. This commitment to safety enhances its reputation in the industry.
7. Geographic Expansion: Covenant Transport has expanded its operations beyond its initial footprint to serve a broader geographic area. This expansion has allowed the company to access new markets and customer bases.
8. Financial Stability: Maintaining financial stability is crucial for long-term growth. Covenant Transport has managed its finances prudently, ensuring it has the resources needed for expansion and investment in its fleet and operations.
9. Strategic Partnerships: Building strategic partnerships with suppliers, customers, and other industry stakeholders has been necessary to Covenant Transport’s growth. These partnerships can lead to collaborative opportunities and increased business.
10. Leadership and Vision: Strong leadership with a clear vision for growth and sustainability has played a significant role in Covenant Transport’s success. Effective leadership ensures that the company remains adaptable and responsive to industry changes.

3. Old Dominion Freight Line

Old Dominion Freight Line is a trucking company that has grown by focusing on its customers. The company has a strong reputation for customer service and has won numerous awards for its commitment to quality. Old Dominion Freight Line has also invested heavily in technology to improve its operations, including a state-of-the-art dispatch and tracking system. An in-depth list of factors is outlined below:

1. Customer Focus: Old Dominion has a strong commitment to providing excellent customer service. They work closely with their customers to understand their unique transportation needs and provide tailored solutions. This customer-centric approach has helped build long-lasting relationships and secure repeat business.
2. Quality Service: Old Dominion is known for its high-quality service and on-time delivery performance. They have a reputation for reliability and consistency, which is highly valued by customers in the logistics and transportation industry.
3. Technology and Innovation: The company has consistently invested in technology and innovation to improve efficiency and service quality. Their use of advanced logistics software, real-time tracking, and data analytics allows them to optimize routes, reduce transit times, and provide better visibility to customers.
4. Network Expansion: Old Dominion has strategically expanded its network of service centers and terminals across the United States. This extensive network allows them to serve a wide range of geographic areas and reach more customers.
5. Modern Fleet: The company maintains a modern and well-maintained fleet of trucks and trailers. This not only ensures the reliability of their equipment but also helps in reducing fuel consumption and minimizing environmental impact.
6. Operational Efficiency: Old Dominion has a strong focus on operational efficiency. They continually look for ways to improve their processes, reduce costs, and enhance their competitive advantage in the LTL transportation sector.
7. Employee Development: The company places a significant emphasis on employee training and development. Skilled and motivated employees contribute to the company’s overall success by delivering superior service to customers.
8. Safety Culture: Safety is a core value at Old Dominion. They have implemented comprehensive safety programs and training to ensure the well-being of their drivers and the public, which is vital in maintaining a strong reputation in the industry.
9. Strategic Acquisitions: Old Dominion has made strategic acquisitions to expand its services and geographic reach. These acquisitions have allowed them to enter new markets and grow their customer base.
10. Financial Stability: Old Dominion has managed its finances prudently, ensuring it has the resources needed for expansion and investment in its operations as the company responds to industry changes over the years.

Common industry mistakes include:

1. Economic Downturns: If not prepared for properly, many trucking companies face challenges during economic downturns or recessions, as these periods can lead to decreased shipping demand and financial pressure.
2. Acquisition Integration: Integrating new companies into an existing corporate culture and operational structure can be challenging. Mistakes in the integration process could dramatically impact the company’s overall performance.
3. Technology Implementation: If not executed properly, technology upgrades or transitions can disrupt operations and lead to inefficiencies.
4. Market Volatility: Fluctuations in fuel prices, regulatory changes, and shifts in customer demand can create challenges for transportation companies.
5. Safety Incidents: Despite a strong commitment to safety, no transportation company is entirely immune to accidents or safety incidents. Such incidents can have reputational and financial consequences.
6. Labor Issues: Labor disputes, driver shortages, or issues related to employee satisfaction can impact a transportation company’s operations and reputation.
7. Environmental Concerns: As sustainability becomes increasingly important, any environmental issues or controversies could affect a company’s standing in the industry.