Trying to turn around a trucking company? Use the 1% approach

Oct 14, 2021 at 09:52 AM CST
Every facet of the industry is so competitive that it can feel like there’s no room for improvement in rates or costs. Imagine your operating ratio (OR) is over 100 and your investors and banks are demanding you get your OR into the low 90s within 18 months or you’re fired. How in the world are you going to find 1,000 basis points of OR improvement? Even if you do the impossible and cut your deadhead in half and cut your driver turnover in half you still wouldn’t achieve your goals.

Oct 14, 2021 at 09:52 AM CST

Every facet of the industry is so competitive that it can feel like there’s no room for improvement in rates or costs. Imagine your operating ratio (OR) is over 100 and your investors and banks are demanding you get your OR into the low 90s within 18 months or you’re fired. How in the world are you going to find 1,000 basis points of OR improvement? Even if you do the impossible and cut your deadhead in half and cut your driver turnover in half you still wouldn’t achieve your goals.