Challenges Facing Daily Operation and Management of Private Truck Fleet - Essay Example

Challenges Facing Daily Operation and Management of Private Truck Fleet Insert Insert Private trucking fleet is a transportation system used by corporations for their own transportation. It is among the leading transportation system especially in the U.S. It is the most used means of transport for heavy equipment. Private trucking fleet is not allowed to do the public transport, and if they choose to do so, they can do without charging for the service. This has increased the expense of transportation since the truck will come back empty after delivering the goods. Like any other industry, they also face challenges. Drivers high turnover has been a challenge to the industry, this happens because drivers are unsatisfied with the quality of life issues for instance being away from home. They tend to prefer to join the construction sector, hence drivers shortage. In addition, the high cost of hiring new drivers. The drivers who are currently employed demand high pay and maintenance. Private fleet is supposed to have better payment and human resource than the public fleet. A life insurance policy for the drivers and health cover for their families is also provided by the company (Dolce, 2009). For companies to open private truck fleet, they require a lot of capital, which is excessively expensive. It forces some companies prefer to hire the trucks rather than buy them. The High cost of buying and leasing equipment’s Private fleet also face rising cost of trucks, power units, and trailers. They lease because their expertise lies in their core business. This prevents the company from trying new technologies. High fuel cost hit the fleet company since an increase in fuel means increase in operation cost. Hence, they will have to incur extra expenses. This has made the managers opt for a hybrid vehicle, which uses less fuel. Though not taken action because of acquisition cost and concern for driver’s dissatisfaction. Fuel cost is not the only challenge for managers, but also a necessity (Fling, 2006). Tire prices fluctuate from time to time, and when they buy cheaper tires they wear out faster therefore increasing the expenses. Sharp competition for drivers has been a challenge to this company. Drivers who are qualified are very few, and the demand is a high hence increase in the cost of hiring. Moreover they incur costs of training and retaining workers. They face a massive labor -shortage because many truck drivers are of over 40 years and above. When they retire, there is low number of employees from the next generation who come to join the industry. They will have to keep the old drivers for longer at a higher cost. The regulatory policy about the numbers of hours long distance drivers can work has also made it a big challenge to the company to hire more drivers (John, 2008). Higher driver qualification increases cost. There are strict federal driver qualifications standards, which contribute to the high shortage of drivers. The Long-term drivers will have to be paid high salaries and benefits to them for instance health care and vacation. There are some certain numbers of years of experience that are required in order to qualify to be a truck driver. Most of the people do not meet a qualification hence the shortage becomes a challenge. The High cost of truck maintenance is a challenge since some diesel emission standards have been passed, and they must be followed. It will succinctly aid the reduction of pollution from vehicles. Repairing the system is expensive, time-consuming and requires expertise that is expensive to pay. The delay, when changing and replacing some wear out parts, is a challenge since that time would otherwise be used to deliver the goods. The trucks, which are old and roadworthy, are not allowed since it pollutes the environment (Theodore, 2008). This policy becomes a challenge to the truck company since they have to invest in new vehicles. Companies are also faced with the managerial burden. For private fleet, they need managerial expertise in order to work effectively; this is an added expense to the company. In most cases, companies do not see the need of having an expert as it is a burden to them. They end up making losses without this knowledge because these managers are there to ensure the smooth running of the company (Fling, 2006). Cargo damage and theft responsibility are other challenges to the truck company since they have to incur more expense to insure them. This insurance use tracking devices that are used to lock the truck doors. This is usually an added cost to the company, but it is worth the expense. If the company doesnt insure the goods, then they are the ones who will go at a loss at the end of it (Dolce, 2009). The company is supposed to ensure that their customers receive goods on time and in good condition hence the need to incur the extra expense. When the truck is for hire, then the private fleet will not have the liability for the safety of the customers since the hired truck will be responsible for it. Liability that occurs from the occurrence of an accident becomes great challenge. Fleet trucks are prone to accidents. The trucks are usually insured, but the premium is very expensive. Companies will opt for cheaper insurance, which usually do not provide comprehensive cover. Vehicles with high accident rates go for regular inspection, which reduces the driver and equipment utilization (Theodore, 2008). The best way to reduce the wasted time is to insure the vehicle with a comprehensive cover because it is worth the expense. With the government regulation that each company should have a schedule of their employees and records, the company has to hire an extra person or people to be in charge. It brings in added expenses to the organization. The drivers insurance is part of the records that are recorded. The technology is also an issue because fleet operators should ensure that they are up on the latest technology (Fling, 2006). The design aids them to meet customers’ needs. Having the latest technology increases the effectiveness of the work. Companies also do not have a strategy to manage breakdowns along the roads. This usually happens as an emergency and hence incurs extra expenses. Most of the time, when a truck breaks down, they take a long time to repair which would otherwise have been solved within a shorter time if they had their highway repair patrol cars. Congestion and poor infrastructure of the roads reduce the capacity of performance for fleet truck companies (John, 2008). There are an increasing numbers of trucks and vehicle on the highways, which increase congestion and slow down traffic. Managers are sometimes forced to take an alternative route, which are not good for the trucks and not safe for their drivers. The roads also damage the tires. The government should increase the tonnage that the truck is required to carry so as to reduce the number of the truck on the road hence reducing congestion. Private fleet is supposed to have better payment and human resource than the public fleet. The High cost of buying and leasing equipment’s Private fleet also face rising cost of trucks, power units, and trailers. Fuel cost is not the only challenge for managers, but also a necessity. They face a massive labor -shortage because many truck drivers are of over 40 years and above. The Long-term drivers will have to be paid high salaries and benefits to them for instance health care and vacation. The trucks, which are old and not roadworthy, are not allowed since it pollutes the environment. This policy becomes a challenge to the truck company since they have to invest in new vehicles. References Dolce, J. E. (2009). Analytical Fleet Maintaenance Management. New York: Prentice-hall. Fling, J. (2006). Filling Backhaul miles for private fleets. National Private truck council, 54(2), 34-54. John, S. (2008). Logistic management. Chicago: Adventure Works Press . Theodore, F. M. (2008). Evaluating the private Fleet. Transpotation journal, 878-888. Read More