Supply Chain Efficiency
Driver Shortage, Ways to Cut it

Driver shortage has been almost 80,000 for years. With the steady growth of fuel costs and a lack of labor and equipment in some parts of the country, load building optimization software benefits users more every week.

Last year at CSCMP, Unilever spoke of freeing truck drivers (and trucks) by increasing load size — they use our load planning AutoO2 tool to do that.

Here are simple facts: Transportation costs are up to 77% of all supply chain costs. Yet, the shipper may load almost 1,000 pounds or more onto trucks because many are underloaded.

It happens for different reasons: the fear of over-weight fines, the lack of skills and knowledge, or the intention to make the loading stable or protect the cargo from damages.

Imagine how the integration with load building may affect your ROI and performance if every truck goes fully loaded. Load building provides a competitive edge by decreasing every unit’s transportation costs.

One of our customers reported that the economy from using our load building optimization software, AutoO2, was $300,000 for one warehouse per month. Hence, their estimated economy for a year is $3,600,000, just from integrating their system with our load-building AutoO2, without additional changes. But, of course, even more critical, the other benefit of using AutoO2 is decreasing the carbon footprint and land waste. Impressive benefits from integration load building software.

Another Approach

But here is another way that helps solve 2 problems:

  • The driver shortage 

  • High rate of recidivism among convicts 

Tennessee Senate Bill 2399 enables qualifying (i.e., not every) incarcerated individuals (aka convicts) who will return to society to receive a CDL before or after their release. Senator Paul Bailey, who owns a trucking company, pushed the legislation, saying, “At my trucking company, we have hired formerly incarcerated individuals, and they are some of our best drivers.”

Economic way

While more money will attract some drivers, Germany has taught us that high wages haven’t attracted more drivers.  Fewer people are leaving Eastern Europe to work in Germany – despite substantial wage differentials.  Economic theory suggesting that “more money will generate more drivers” collides with personal motivations that keep drivers home. 

Separately

Better drug tests = 300K fewer drivers:  New drug-test regulations may eliminate ~10% of drivers (over 300,000).  The Office of Management and Budget is reviewing the regulations requiring hair follicle testing, which should be published soon.  

Key facts about hair follicle testing:

  • Used by a few large carriers that say using urinalysis alone missed nine out of 10 illegal drug users

  • It is virtually impossible to fake

  • Detects fast-metabolizing drugs like cocaine

  • Results will be kept in the USDOT drug clearinghouse so other trucking companies can see a driver has failed.

Trucking executives expect rate increases of 5.8% in the next 6 months. This is at least better than the previous survey that suggests 6%.

Know your benefits

We will analyze and tell you your transport optimization results before implementation