The Local Trucking BlogWelcome to the online community for local trucking, cartage, and P&D companies in North America

A number of TMS providers now offer local trucking companies a variety of alternatives to the traditional in-house installation. In the more traditional setup, both the software application and your TMS data reside on a physical server in your company’s office building. For many local P&D companies, this method of hosting data in-house may still be the best one.

However, there are some other newer options for TMS hosting that you may want to consider.  They include the following:

1.   Data in the Cloud, an App on your Desktop (“Managed Hosting”)

In this scenario, you would launch your TMS by clicking on an icon on your desktop, just as if you’re launching Excel.  The TMS application appears on your screen, just as it would if your data lived on your local. The only difference from the traditional in-house model—a difference that is invisible to the user—is that your data lives offsite, hosted by your TMS provider or one of its trusted providers such as Rackspace.

2.  Data in the Cloud, App in the Cloud (an “All-Cloud TMS)

With this alternative, the TMS application itself lives “in the cloud” and is a web-based application.  You get to it by going to a website and logging in there.  You may already have experienced something like this if you use an offsite login to get access to your Exchange e-mail server.

How to Decide?

As usual, there are advantages and disadvantages to any setup. For example, some add-on TMS options (such as GPS or route optimization) require you to have an in-house TMS, so that its database can talk to your TMS’s database.  In some cases, the cloud-hosted database works just fine with third-party vendors.  Check with your current and potential future vendors and see which is the best option for you.

Happy Shopping from the Local Trucking Blog!

–The Editors

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We hear all the time that communication between dispatchers and drivers is a huge problem in local trucking.  This is what our customers are complaining about:

• Most handheld devices are prohibited while driving.
• Driver/dispatcher communication is a huge bottleneck in the office.  When only one person knows critical ETA or POD information, customers don’t get the info they need when they need it.
• Drivers aren’t reliable in reporting arrival and departure times.

The best way to manage your communications between dispatchers and drivers is to eliminate the need for so much talking.  Now you can cut down dispatcher-to-driver talk and still provide superior customer service.

OneTerminal TMS from JSY Software eliminates risky talk in the following ways:

• It updates actual arrival and departure times for each pickup or delivery with no talking to drivers.
• It separates pickup from delivery so that you have accurate data for each action.
• It lets everyone on your network see all POD information in real time.
• You simply push out updates (like new pickups) to drivers with a click.
• Best of all:  no talking required.

You will be able to get every job done safely without talking to drivers when you are using OneTerminal TMS.

For your free hands-on consultation, fill out the short form below, or contact us at jmiller @ jsysoftware.com (Jonathan Miller) or 877-540-0030.

[contact-form] [contact-field label=”Name” type=”name” required=”true” /] [contact-field label=”Email” type=”email” required=”true” /] [contact-field label=”Website (optional)” type=”url” /] [contact-field label=”Comment” type=”textarea” required=”true” /] [/contact-form]

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The best way to manage your communications between dispatchers and drivers is to eliminate the need for so much talking.

OneTerminal TMS from JSY Software is your solution. It virtually eliminates risky talk with drivers.

• Automatically, and without the need for any driver input at all, keep track of available weight and space capacity on every truck, in real time.
• Keep track of Hazmat quantities and weights, in real time. Send placarding alerts.
• Send order details, including routing instructions, with a single mouse click.
• Best of all: No talking required.

Make your drivers safer and give your staff and customers better information – and get it faster.

OneTerminal TMS gives you a better operation with almost no driver talk.

For your free hands-on consultation, fill out the short form below, or contact us at jmiller @ jsysoftware.com (Jonathan Miller) or 877-540-0030.

[contact-form] [contact-field label=”Name” type=”name” required=”true” /] [contact-field label=”Email” type=”email” required=”true” /] [contact-field label=”Website (optional)” type=”url” /] [contact-field label=”Comment” type=”textarea” required=”true” /] [/contact-form]

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There was an interesting question posed by Deborah Lockridge, editor at Heavy Duty Trucking, early this week, which sparked a discussion thread:

http://www.linkedin.com/groups/What-tips-do-you-have-134135.S.107106598?qid=44123cd7-93fa-474f-9c4e-55590cc41bbd&trk=group_most_popular-0-b-ttl&goback=.gmp_134135

While some people commented on fuel efficiency, reducing accidents caused by sloppy backing up, and so on, we feel strongly that having the right TMS is the #1 way to cut costs in local P&D, by reducing bottlenecks and redundancies in the office environment and by making drivers more productive.

If your staff never had to put people on hold to answer a POD request, how much time would that alone save you, not to mention how much your customers would appreciate it?

As one person commented in the replies:  “The wrong software is wrong, even if free, and the right TMS is golden, no matter the cost. The money spent is insignificant compared to the personnel savings and increased productivity of the drivers.”

—The Editors

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We thought this was worth your consideration:

California Supreme Court Decision

Check it out.

–The Editors

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The Internal Revenue Service today advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011.

Because the highway use tax is currently scheduled to expire on Sept. 30, 2011, this extension is designed to alleviate any confusion and possible multiple filings that could result if Congress reinstates or modifies the tax after that date. Under temporary and proposed regulations filed today in the Federal Register, the Nov. 30 filing deadline for Form 2290, Heavy Highway Vehicle Use Tax Return, for the tax period that begins on July 1, 2011, applies to vehicles used during July, as well as those first used during August or September. Returns should not be filed and payments should not be made prior to Nov. 1.

To aid truckers applying for state vehicle registration on or before Nov. 30, the new regulations require states to accept as proof of payment the stamped Schedule 1 of the Form 2290 issued by the IRS for the prior tax year, ending on June 30, 2011. Under federal law, state governments are required to receive proof of payment of the federal highway use tax as a condition of vehicle registration. Normally, after a taxpayer files the return and pays the tax, the Schedule 1 is stamped by the IRS and returned to filers for this purpose. A state normally may accept a prior year’s stamped Schedule 1 as a substitute proof of payment only through Sept. 30.

For those acquiring and registering a new or used vehicle during the July-to-November period, the new regulations require a state to register the vehicle, without proof that the highway use tax was paid, if the person registering the vehicle presents a copy of the bill of sale or similar document showing that the owner purchased the vehicle within the previous 150 days.

In general, the highway use tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds or more. Ordinarily, vans, pick-ups and panel trucks are not taxable because they fall below the 55,000-pound threshold.

For trucks and other taxable vehicles in use during July, the Form 2290 and payment are, under normal circumstances, due on Aug. 31. The tax of up to $550 per vehicle is based on weight, and a variety of special rules apply to vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during the year and those first used on the road after July.

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A proposal is being floated in Washington that would tax mileage on all vehicles–including local trucks, OTR trucks, even cars.

http://www.truckinsurancepro.com/industry-news/proposal-to-tax-mileage/

Take a look, read all about it, and contact your legislators if you are so moved.

Keep rolling,

Jonathan Miller, Editor

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It now costs over $200 to fill up a straight truck, and pouring 120 gallons into your twin-75 equipped tractor can cost $500.  In an earlier post we discussed fueling strategies.  If $10 is saved on labor, it is as good as $10 saved on fuel cost.  What else is there?

We are not going to list all the well known strategies for reducing fuel efficiency, such as more efficient trucks, driving slower, less idling, correct tire pressure, etc.  Many of these techniques have little benefit in the local trucking universe.  Often overlooked is what kind of diesel is being used. This is a potential money-saver for you.  Think about it.

During the winter months diesel is often blended with expensive additives to prevent ice buildup.  Sometimes standard practice starts the “additive season” too soon and ends too late.  The difference in cost can be ten cents per gallon or more.

In the warmer months, or warmer climates, biodiesel is an excellent choice.  Because of government subsidies, biodiesel is often $0.15/gallon less than plain diesel.  Biodiesel gets the same or better mileage and comes with no additional maintenance or other expense.  Look for a source, figure out the extra labor cost (if any) to get the truck to the appropriate facility, and make an informed decision.  Most wet fueling operations can provide biodiesel.  It is your tax dollars that are providing the subsidy, so you might as well get some benefit from it.

So, what is biodiesel?  Biodiesel is a blend of diesel fuel with organic materials other than ethanol, such as used cooking grease, canola oil, etc.  It is refined and cleaned before use.  Here is a link to an interesting slide show about biodiesel:

http://www.biodiesel.org/resources/sustainability/pdfs/Advance_Biofuel_Webinar_20100827.pdf

As usual:  keep doing the homework, and you can probably keep finding new places to save money.

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Moose alert!  Way’s Transport, a local trucking company in Western Newfoundland, Canada, lent its resources recently to National Geographic (NG) for a video shoot.  NG was looking for video footage of moose in the Northern Peninsula, where collisions between trucks and moose are common.

Click here to read the story.

“Moose racks” can help to reduce vehicle damage from such collisions.

Moose accounted for 3,400 vehicle crashes in Maine from 2000 to 2004, according to the Center for Disease Control:  here’s a detailed article.

http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5547a3.htm

In late spring, moose are drawn to roads for the salt left there by vehicles.

–Jonathan Miller, Editor

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More and more shipments, including local delivery, are being controlled by freight brokers or their fancy-named cousins, logistics providers.  There are many considerations for doing business with brokers–but first, you must get the freight offered to you.

How do you successfully solicit shipments from freight brokers?  The first step is to contact a prospective broker.  Most brokers do not have a specific dispatcher assigned to local pickup & delivery.  Each dispatcher generally has a personal local resource list. You can understand a dispatcher sometimes wanting to guard that list against revealing to other dispatchers.  The trick is to gain a beachhead with one dispatcher and then leverage that relationship to get introduced to other dispatchers that may need local services.

Once you have interested a broker in your services, the next step is to fill out an information sheet.  This rarely asks the questions that pertain to local P/U & delivery, such as:  “Do you have straight trucks?” or “Do you have liftgates?”, etc.  Often you are asked to simply list states in which you do business.  It is difficult to define a metropolitan area.  All these questions are barriers to local operations.  The information you provide is usually entered into a spreadsheet format that has no room for “explanations.”  You must consult with your prospect to determine the best way to enter information such that it is visible to other prospective users.

The path is difficult, but the rewards are worth it.  You must “sell” each dispatcher as if s/he were a separate customer.  Keep in mind that dispatchers often change jobs and usually bring their “stable” of customers and resources with them, potentially providing you with fresh dispatchers to solicit.  Resist the urge to get the work thru price reduction.  Brokers use one-truck operators, unregistered carriers, etc. who can all undercut your rate.

Do not try to match rates;  concentrate instead on work that would be profitable for you if you got it.  Accept the fact that 90% of freight is going to the lowest price and you are competing for the remaining 10%, which is often the only work worth doing.

There are many other consideration for doing work with brokers, some of which will be examined in future blog posts.  In the meantime, do not ignore this potential rich source for future business.

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