Is your truck operation prepared to benefit from the retail revolution?
As business conducted online is increasing, the opportunities for truck and haulage companies are growing. That’s great news for truck operators. However, much of the retail growth is likely to be in the ‘fast delivery’ space, where the competition for retailers is fierce. Competitors promise better delivery services.
Consequently, though there are opportunities for truck operators, there are also hurdles that must be negotiated – what happens if your truck breaks down, or you have a tyre blow-out during operations?
Who delivers the retailers’ products?
Very few retailers have their delivery trucks. They don’t do haulage for several reasons. One is it’s not their area of expertise. Cost is also a factor: contracting services are usually cheaper than building and running their own. Instead, they use national and local haulage companies to deliver their products. For example, Amazon mostly uses UPS or FedEx.
It said, smaller operators can be more flexible. Some national haulage companies don’t operate on a Saturday: more opportunity for independents.
How tight is the market for retailers?
It’s likely that more retailers will need to offer more efficient and faster delivery services to meet the competition head-on. The pace of life is increasing, and people are becoming happier to order online rather than spend time travelling to the city, parking, shopping, and then returning home. Time is saved, and aggravation avoided. The delivery cost is deemed good value for money, and so those retailers that deliver to the door promptly are increasing their market share.
If we take this developing market to its natural conclusion, every retailer will offer delivery. If we assume that there is little difference in the quality of goods, then, to beat their competition, retailers will begin to rely on their delivery capability as the differentiator. The faster and more efficient delivery provider will gain market share.
For truck operators in this market, the capability to offer fast, efficient, and reliable services is likely to prove to be a winning formula. But while this business can be very lucrative to the haulage company or owner-driver, there may be penalties for late deliveries written into contracts. The ultimate sanction would be a loss of the contract.
Uptime is a critical factor for a truck owner-driver’s success
There’s not a lot you can do about traffic on the road. You can plan your routes and timings, but a road traffic accident, unexpected roadworks, or other obstruction can cause problems. However, all such issues can be excused – what happened to your deliveries in such circumstances would have happened to others.
But other events won’t be excused by retailers. The worst roadside problems always happen at the most inconvenient times. A breakdown or blown tyre will hamper deliveries, harm your record, and could cost you your living. You shouldn’t hope for the best without planning for the worst.
What today’s truckers need to meet the retail need of tomorrow
If you don’t have emergency breakdown cover, you could be jeopardising your business. Here at Darra Tyres, we’re already beginning to see an increase in the use of our Raid Response service, as the call on truck and haulage operators increases. This service offers a 24/7 emergency breakdown coverage for truck operators, ensuring you get back on the road with minimal fuss and maximum speed. One of the most used features is the tyre repair and replacement service – it’s surprising the toll that Brisbane’s roads can take on a vehicle, its wheels, and tyres.
Your success depends upon uptime. If you don’t choose the right tyres and haven’t got the best roadside service agreement, then you are putting your business at risk. With all these elements in place, your ability as a truck operator will be given a chance to drive your future business success.
Contact Darra Tyres today and make sure you are properly prepared to profit from the retail revolution as it gathers pace in Queensland. Never be stranded on roads in and around Brisbane again.
Keeping your business and fleet safely on the road,