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How Carrier Management Software Could Save Small Carriers

Updated: Aug 10, 2023

The pandemic has not been easy for the trucking industry, and it has been especially challenging for small carriers that lack sufficient revenue to hire enough safety managers, accountants, and dispatchers. Without automated carrier management software, these companies are overseeing important safety and operational tasks, resulting in high FMCSA safety scores, high turnover rates, and even license revocation.

The Unfortunate Truth of Facing Small Carriers Without Management Software

According to Fleet Owner, the FMCSA reported a record-breaking number of license revocations in May 2022 at nearly 9,300. Because of this, it isn’t shocking to hear that CCJ reported 85-90% of small carriers go out of business, or move to an existing large carrier, within the first year of operations.

But, why are so many licenses being revoked? And why aren’t these small carriers able to survive on their own?

The answer is simple: they are overwhelmed.

As prices continue to skyrocket, small carriers are forced to cut costs wherever possible in order to financially survive. And one of the first cuts made typically involves employees who run operations. When these jobs are reduced, certain tasks start being overlooked as drivers are forced to self-dispatch and give little attention to in-office tasks relating to safety and compliance.

All of this can lead to a high FMCSA safety score. This score can impact the relationship between a small carrier and its brokers, insurance companies, and drivers, not to mention the potential legal ramifications. As safety scores rise, these companies are forced to take on smaller loads and pay higher insurance premiums, resulting in revenue loss and high turnover rates.

Why Carrier Management Software is the Solution

All that said, small carriers need to automate as much of the operations process as possible to eliminate unnecessary manpower, cut costs, and streamline carrier tasks. By utilizing carrier management software, these companies can focus on surviving and thriving while operational systems are being regulated automatically.

ZTrucking helps carriers maintain FMCSA compliance by validating required documents, monitoring driver records, automating record-keeping, and running a daily safety audit. The program also streamlines operations by scheduling inspections and maintenance, onboarding drivers, and calculating IFTA for reports. Furthermore, ZTrucking can be used to automate and streamline certain aspects of accounting and finance, such as invoice payments or expense reports, resulting in significant revenue increases over time.

By automating these tasks, small carriers can eliminate or reduce the amount of missing or expired compliance records. Both drivers and vehicles will be monitored 24/7 without the cost of additional staff or labor. Payments and scheduling can become entirely automated, allowing small carriers to focus more on building relationships with brokers and signing up with more owner-operators.

It’s not easy to keep up with FMCSA guidelines, but with ZTrucking, small carriers won’t have to. Instead of monitoring day-to-day operations, owners can take the necessary steps to grow and expand their businesses without having to worry about noncompliance, turnover rates, or insurance premiums.

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