Modernizing the trucking industry – Taking the Hire Road

Due to slim margins, innovation in trucking requires strategic planning

On this week’s episode of Taking the Hire Road, Madison Conway, vice president of marketing and communications at DDC Freight Process Outsourcing, sat down with host Jeremy Reymer, founder of DriverReach and Project 61, to discuss why the trucking industry hasn’t advanced as fast as other sectors and how companies can create an environment that fosters innovation.

Conway got her start in the freight industry at DDC after spending her early career at public relations agencies. 

“My first introduction to trucking was what some people might call ‘baptism by fire,’” Conway said. “I was drinking from a firehose with new technical knowledge and constant thinking on my feet, but I absolutely loved it.”

Although she did leave to work for a few other industries, Conway returned to DDC because she appreciated the environment and the people. 

“Since coming back, I’ve gotten more involved with the ATA and other advocacy efforts for drivers, recruiting and innovation,” Conway said.

Technological and methodological innovation are huge passions for Conway, and she hopes to see more new ideas, especially in this difficult market. “Trucking has made massive strides to catch up, but compared to other industries, it’s not apples to apples,” Conway said. “We have to be careful with what we aim for, because what works in other environments may not work for trucking.

“We need to be careful projecting a negative sentiment about what we don’t have in trucking and instead ask why we haven’t grown as fast as other industries. Why haven’t we seized the opportunity to evolve in the way that other industries have?”

Some of the factors that hamper innovation, according to Conway, are inherent and can’t be changed. “What makes us tick and keep going are the hardships and relationships built in a fast-paced environment,” she said. “There are things we can adapt to, though, and leverage technology to restructure how we work.”

Trucking has been able to innovate in regard to emissions, route optimization, data gathering, predictive analytics, home time for drivers, driver health and safety, safety for the general motoring public, and many other key pain points.

“As each generation moves through the workforce, you see fresh new ideas come into the industry in an evolution like other industries have undergone,” Conway said.

Unfortunately, the economic impact of the freight market has affected how trucking companies are able to grow. 

“Trade shows have lower attendance because not everyone can afford to attend, or they’ve simply gone out of business,” Conway said. “It’s hard to justify many expenses because our margins are so slim. That makes it much more difficult for small businesses to invest in technology and infrastructure.”

In the midst of these challenging times, logistics companies have to keep planning for the future without compromising their immediate needs.

“More so than some other industries, we have to be very strategic with our goals,” Conway said. “Our day-to-day operations are always moving and they can be dynamic, which makes it natural for us to fall into a pattern of stagnation when it comes to long-term development goals.”

Even if your organization doesn’t have the funds to invest in new technology right now, Conway says, there are other ways to plan ahead, including taking the time to carefully analyze your operation and your team.

“There are many freight companies that have not codified standard operating procedures or optimized their internal workflows,” Conway said. Maintaining service level agreements, for instance, is one way that many carriers and logistics companies are protecting expenses and holding vendors accountable.

“If we want to move forward as an industry, we have to maximize our resources so we can all find the areas where we have room to grow,” Conway said.

Book recommendation: “Exponential Organizations

Click here to learn more about DDC Freight Process Outsourcing. 

Sponsors: DriverReach, Lanefinder, The National Transportation Institute, Career Now Brands, Carrier Intelligence, Infinit-I Workforce Solutions, WorkHound, Asurint, Arya By Leoforce, Seiza, Drive My Way, F|Staff, Trucksafe Consulting, Seated Social, Repowr

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