The annual convention of the Truckload Carriers Association (TCA) brought together a panel of successful trucking executives who have navigated the challenging freight market. The panel, moderated by Graig Morin, president of Brown Dog Carriers, consisted of Chris Hummer, president of Don Hummer Trucking Corp., Mark Walker, CEO of TransLand in Missouri, and Ty Walker, Director of Finance at Stokes Trucking. Despite their smaller size, with fleets ranging from 50 to 300 trucks, these companies have managed to survive the multi-year freight recession by focusing on data-driven decision making.
The panelists emphasized the importance of using data and benchmarking to stay ahead in the industry. They praised the TCA Profitability Program (TPP), which provides financial data on participating members' performance compared to their peers. By analyzing this data, companies can identify areas for improvement and make informed decisions about their operations.
Ty Walker from Stokes Trucking highlighted the value of TPP in providing granular data on cost items such as lumper payments. This allows companies to compare their spending with industry averages and adjust accordingly. Mark Walker from TransLand also praised TPP, saying it has helped his company improve its performance by identifying key metrics that matter most.
The panelists agreed that focusing on costs per truck or revenue per truck is crucial for success in the industry. Don Hummer Trucking Corp.'s Chris Summer cited network density as another important metric to monitor, which reflects the concentration of freight deliveries in a given area. By analyzing these data points, companies can optimize their networks and improve efficiency.
To communicate the importance of data-driven decision making to employees, Mark Walker from TransLand implemented a financial acumen workshop that broke down complex metrics into subcategories. He also emphasized the need for employees to understand how their daily work impacts key performance indicators (KPIs).
The panelists also discussed the importance of choosing the right data points to focus on. Ty Walker from Stokes Trucking highlighted the value of a weekly scorecard that cites multiple data points, including total revenue and available load count. Mark Walker from TransLand emphasized the need to prioritize certain metrics over others, such as miles driven by drivers in a day.
The freight market is cyclical, and companies must adapt to changing conditions. Chris Summer from Don Hummer Trucking Corp. advised against making permanent solutions to short-term problems and instead encouraged companies to use data-driven decision making to navigate the industry's fluctuations.
By focusing on data-driven decision making, companies can optimize their operations and improve performance in a challenging market. The panelists emphasized the importance of trusting good data and using it to inform strategic decisions. By doing so, they can stay ahead of the competition and ensure long-term sustainability.
Ultimately, the key to surviving the freight recession is to adopt a data-driven approach to decision making. By analyzing key metrics such as costs per truck, revenue per truck, and miles driven by drivers, companies can identify areas for improvement and make informed decisions about their operations.
