Even though the economy shows some uncertainty, transportation companies seem to feel confident in their abilities to increase business volume and enhance service. A new survey from Transport Capital Partners revealed carriers are optimistic about the future. Many companies may need to do more with less in the coming months, making it important to have the most efficient processes in place.
Expectations for capacity and future business conditions up
The First Quarter 2013 Business Expectations Survey indicated nearly two-thirds of transportation companies have plans to increase their capacity in the coming year. This marks a substantial increase from the 51 percent who responded positively in the final months of 2012. While 20 percent plan to increase capacity by 6 to 10 percent, 38 percent anticipate they'll add 5 percent or less.
Carriers may be adding more capacity because they expect to be moving more cargo in the near future. According to the survey data, 83 percent of large carriers think business volume will jump in the next 12 months, when compared to the last year. Meanwhile, 67 percent of smaller carriers believe the same. Fewer than 10 percent of both large and small carriers believe volumes will decrease in the coming year.
Maintaining efficient processes as business increases
Because many companies plan to add capacity and grow their business in the months ahead, they'll need to determine how to get jobs done efficiently and ensure they can handle any surge in business. Employing the latest technology like vehicle routing software may help managers optimize their fleets and determine which vehicles will run certain routes, helping them best use their assets as cargo loads increase.
Route optimization software will help fleet managers determine how they can effectively utilize the capacity they currently have as business volume ramps up. A proven software solution can also save time, as route planning can be a time-intensive task. Implementing automation allows management teams to use their talents elsewhere and ensures all operations are running smoothly. Routing software also lets drivers take the most direct routes and make deliveries and pickups in a manner that makes sense for companies that are concerned about both time and efficiency. This benefit can ensure stops are made on schedule and that new, as well as existing, customers are satisfied with a carrier's service and continue to work with it in the future.