Six Steps to Maximize Transportation Profits

Carriers know they should be more efficient and work smarter not harder. But sometimes they confuse increasing revenues with maximizing profits. Want to maximize profits instead of just increase revenues? Any carrier, of any size, can using these six steps.

Step one: Get smart.

Utilize technology to give your business an edge. The right equipment will provide cash and movement reports so you can stay on top of your business, as well as real-time updates on maintenance issues and driver performance. Technology is the one area where you do not want to save a buck. Months from now, you’ll hardly remember if you spent a little more than necessary, but you’ll kick yourself many times if you didn’t spend enough – especially if your competitors have capabilities you don’t.

Step two: Get tough.

Institute a fuel program, and then monitor it. Are you relying on your local or regional fuel salesperson to give you the best deal? How do you know what the best deals are? Cost plus? Retail minus? Better of? Bob Joiner of StrategEZ Fuel Network Solutions says carriers should contact fuel vendors regularly and negotiate the best prices possible. Deals shouldn’t stay in place year after year. Then carriers should track transactions to measure the results and make sure drivers are fueling at stops that are in the network. Many smaller carriers can’t afford a full-time fuel manager and assign this responsibility to another staff member, often the safety director. Safety directors have too important a job to ask them to take on this extra duty.

Step three: Get lean.

Make sure you aren’t wasting miles or keeping equipment you don’t need. Review your rates and your lanes in detail so you know where your trucks are going and so your customer service reps know what you need to turn a profit.  When your customer asks you to do more, ask yourself if that request would force you outside your standard routes. Maybe you should consider passing on the business.

Jimmy Starr, owner of Arkansas-based Woodfield Trucking, reduced his company’s fleets by 20 units about a year ago and now has 102 units. It was just too expensive to pay for trucks he wasn’t using and too hard to find qualified drivers to keep them moving. If the right business comes along, he’ll grow the fleet again, but he’s comfortable where he is.

Another place to look when trimming your company is excess staff. We’ve found that a carrier needs one non-driving employee, including owners, for every seven drivers.  If your company is way over the mark, review your processes and make sure you are not paying people just to shuffle paper around.  In reviewing the operations of a particular company, we found that very few loads were being booked during the morning hours, and then right before the end of the day, several loads miraculously would be entered into the system.  We concluded the company had too many dispatchers.  The company removed two and never missed a beat. 

Step four: Get green – and by green, I mean more fuel-efficient.

Gabe Stephens at CC Jones Trucking said his owner-operators spend up to $1,500 more a month on fuel using their older trucks than his company spends with newer trucks. One owner-operator got rid of his gas guzzler and is paying for his new rig with the difference in fuel costs alone.

To really save money, move the speedometer back to 62 miles per hour. A carrier driving 12 million miles a year that improves its fuel mileage from five to six miles per gallon would save, at $4 a gallon, $1.6 million a year. Stephens said, “I told somebody the other day, ‘When’s the last time you were on the interstate driving 65 to 70 miles an hour, and you had a truck pass you?’ he said. “If you think about it, it just doesn’t hardly happen anymore.”

Worried that you’ll lose drivers by doing that? Share some of those fuel savings with them. Bulkley Trucking out of Sulphur Springs, Texas, gives drivers incentives to improve their mileage. The company’s driver of the year averaged 9.1 miles per gallon and was awarded a Ford F-150 pickup truck in response. Thanks in part to its fuel efficiencies, the company’s profits and fleet size are increasing.

Step five: Get better maintenance processes.

Don’t skimp on maintenance – at all. Little things can cause big problems and review your utilization per shop personnel. This sometimes is a black hole where money goes in but nothing comes out. Accountability is the only way to stop the flow. Implement a repair order system, and if you already have one, make sure it is working as intended. Get shop reports weekly on equipment that needs to be repaired or is up for preventive maintenance, and have a person in management approve all repair and maintenance before it is performed. Check your production on your shifts, especially if you are running two of them. It could be that you need only one. 

Step six: Get a second opinion.

CPAs who really know the trucking industry can do more than balance your books and file your tax returns. They can help you save on all kinds of expenses. They also can provide projections whether you want to expand your business, cut back, or trade equipment. If leasing or purchasing is a question, let your CPA help you figure out the best approach based on your current tax and cash flow situation. Work with your CPA to make sure you are presenting your financial statements to your creditors in the best possible light.

 


http://www.arkansasbusiness.com/article/92212/six-steps-to-maximize-transport-profits-jeff-lovelady-commentary

Guide to Government Incentives for Green Commerical Trucks

There are numerous benefits for utilizing fuel-efficient commercial trucks. In addition to being better for the environment, fuel-efficient trucks boosts your company image and positively impacts your bottom line.

While these vehicles are more expensive than their less-efficient counterparts, the U.S. government has set up incentive programs to provide loans, offset costs and offer tax credits and exceptions to help companies outfit their transportation operations with green fleets.

At the federal, regional and state level, there are five types of incentives for those that purchase new commercial vehicles or upgrade in fuel-saving trucking equipment:

1.       Grants

2.       Rebates and vouchers

3.       Low cost loans

4.       Tax credits

5.       Tax exceptions

However, it’s important to consider who qualifies for these programs. Many incentive programs commonly stipulate vehicle type, fuel type, state/region of operation, vehicle weight limit, fleet size and overall company revenue. In addition, the application for each type of incentive is nuanced, and each program has its own requirements.

To help, Software Advice, a website that reviews transportation software (here), has put together a comprehensive guide that breaks down the federal, regional and state incentive programs and provides contact information for each program. In addition, the guide provides a quick, four-step process to help guide your application process.

For more detailed information on these programs, check out the guide here: http://blog.softwareadvice.com/articles/scm/government-incentives-fuel-efficient-commercial-trucks-0413/.

 

Bell & Company Celebrates 30 Years

Bell and Company recently celebrated 30 years of business and put together a video of our clients and what they had to say about our company please enjoy the following link to the video.

http://sterlingimageworks.com/p871245256/h51e09806#h51e09806

Bell and Company wins a National Public Service Award

10.22.12

Bell and Company, PA was selected by the American Institute of Certified Public Accountants as the recepient of the 2011 Public Service award where we traveled to Ameila Island Florida to receive.

Here is the press release from the award.

Amelia Island, Fla. (Oct. 22, 2012) – The American Institute of CPAs is pleased to announce that Johnny K. Hudson, CPA is the 2011 recipient of the Institute’s Public Service Award for Individuals. Bell and Company, North Little Rock, Ark. and the Reznick Group, Bethesda, Md. have received the 2011 Public Service Award for Firms. The annual awards honor members and firms of the AICPA who have made significant contributions to their communities. The recipients received their awards at the fall meeting of the Institute’s governing Council in Amelia Island, Fla.

Kathy G. Eddy, chair of the awards committee presented the awards.

“The many strong candidates for these awards make it difficult to select individuals and firms. So many make significant contributions to their communities,” said Kathy Eddy, chair of the AICPA’s awards committee, “It is our belief that all of compassionate and tireless volunteers should be recognized. But this year’s winners, Johnny K. Hudson, Bell & Company and the Reznick Group clearly stand out.”Bell and Company’s partners and employees have served in pivotal roles in community organizations throughout North Little Rock, Ark. and Haiti. Following the 2010 earthquake in Haiti, the firm raised much needed funds for school supplies for children residing a remote village. The firm gathered, sorted and packed the supplies into 400 individual containers per child. In the same village, Bell & Company supported a medical clinic by providing Internet service and funding a full-time nurse. The firms sent two employees to the location to personally distribute the school supplies and help set up the clinic.

In Arkansas, Bell& amp; Company supports the Arkansas State Mental Hospital through volunteerism and donations, staff members serve meals for the homeless at the Salvation Army the first Wed. of each month and is actively involved in the Susan G. Komen Race for the Cure and Hearts and Hooves, a therapeutic horse riding and teaching facility for those with disabilities.

Indpendent Contractors Model

Richard Bell recently spoke at the TEANA conference in New Orleans here is a link to the White Paper he handed out "The Five Evil Sisters:  An Attach on Indpendent Contractors". 

Following is what  TEANA said about he topic. 

"Transportation accountant Richard Bell pointed out threats facing the independent contractor model many TEANA members utilize. Bell contends business owners do a better job of allocating and managing resources than government, as local, state and federal authorities seek revenue during times when tax coffers are thinning. Bell encourages TEANA members aggregate against government controlling independent contractor law and for members to work towards changing state workers compensation laws to make them statutory. Bell advises all members to understand the definition of "employee" in each state they provide services, for workers compensation purposes."

If you would like more information on this topice or would like the exhibits in the white paper listed above please contact deanna.lovelady@bellandcompany.net or call Richard Bell 501.753.9700.