An Idea To Benefit Drivers AND Fleet Owners

ATeam

Senior Member
Retired Expediter
This is a long post (3-4 pages printed) and probably of interest only to a few folks. It may not be worth your time to read. It explains an idea I have for an organization that would help drivers find good fleet owners and fleet owners find good drivers.

It's just an idea. I have no plans to act on it in the foreseeable future. I simply share it here for the pleasure of those that might be interested.

While I'm relatively new to expediting, I know a fair amount about creating and building organizations. With expediting now over 25 years old as an identifiable sector in the transportation industry, it seems odd that drivers and owners have not yet created an organization to address one of their most pressing needs.

Drivers in search of fleet owners need to know from an independent and reliable source what kind of track record their prospective fleet owners have. Fleet owners need to know the same of drivers. And once drivers and fleet owners have entered into a working relationship, they need to know they can count on each other to perform as agreed.

Note the difference between carriers and fleet owners. By fleet owners I mean folks in expediting that lease a number of trucks (usually less than a dozen) to one or more carriers and contract with drivers to run them. The drivers I discuss here are not employees or company drivers. They are self-employed independent contractors. While the concept I have in mind could scale to the entire trucking industry, I'm only talking here about the sector I know best; expediting.

DAC reporting is way too slanted in favor of carriers. As far as I know, fleet owners have no comparable driver reporting organization of their own. OOIDA is a driver organization but operates at higher levels than would the organization I have in mind.

I'm thinking about an organization that recognizes the common interests drivers AND fleet owners share. It's in both their interests to run freight and make money. It's in both their interests to conduct fair business practices. Fleet owners don't want drivers that secretly use their trucks to make money on the side. Drivers don't want fleet owners that skim a little here and there, or worse. I could go on, but I think the point is made. The need exists for an organization that does not pit one group against another, but instead serves drivers and fleet owners together.

The driver/fleet-owner organization I'm thinking about would help put folks at ease and help good people find each other. Bad people would not be admitted. Membership fees would cover administrative costs. The fees would pay for the applicant's background check. The background check would include a public records search and third-party interviews with the applicant's past business associates.

Background information would be made available among members according to organization rules put in place. Ongoing rating of fleet owners by drivers and drivers by fleet owners would occur and be reported to all organization members; similar to eBay, where members rate and comment on each other's performance.

Organizational emphasis would be placed on recognizing good behavior and quickly tossing out members that fail to uphold the organization's standards.

It would not be a big organization that needs to keep getting bigger to satisfy the ambitions of the organization's staff members(volunteer or paid). It would not maintain a high (and expensive) public profile. It would be just folks - fleet owners and drivers -coming together in an agreed-upon way to produce mutual benefits.

Think of the rookie driver with no credit history, or the experienced owner/operator that failed and ruined his credit and wants to start fresh. Wouldn't it be nice to be able to submit to a background check, answer questions that address fleet owner concerns, ask questions that address your concerns, be given the benefit of the doubt, and be able to start (or start again) on the road to trucking success? And wouldn't it be nice to know your fleet owner is truly committed to helping you achieve your career goals?

Think of the fleet owners that have what it takes to be part of the organization (good credit history, some money to work with, trucks, history of good business practices, etc.). They'd love to find reliable and trustworthy drivers. That's how organization participation would benefit fleet owners.

And think of the deterrent value poor performance under your organization agreements would have. Poor performance would be reported (as you previously agreed as a condition of membership) to other members and expulsion from the organization would be a possible result.

Dispute resolution procedures that first try to resolve conflicts without lawyers would be in place, making it easier for disputing members to work things out.

There's much more to think through in designing and building an organization like this....funding being one of the important topics, organizational leadership structure being another, driver and fleet owner admission requirements being yet another.

Other risks must be anticipated and hopefully pre-empted. If you succeeded in building this organization, vendors will descend with all sorts of proposals. They'll offer discounts to members, they'll pay to mail the organization newsletter if they can have exclusive advertising space in it. They'll offer to put organization leaders and/or staff members up in free hotel rooms at truck shows.

All such vendor offers should be rejected. Members can get product discounts through other means. This organization is not about providing a number of member benefits. It's about providing ONE benefit...helping good drivers and good fleet owners meet and succeed together. While the above vendor activity may be tempting, it would also be a distraction from the organization's sole purpose.

If the organization decided to expand its mission, member development would be a good way to go. The organization could tap the talents of its members to publish "How to" articles, create boilerplate fleet owner contract language, and/or offer things like advanced driver training opportunities (e.g. skid pad), or business management classes. In other words, focus on things that will help drivers and fleet owners improve their skills and working relationships.

It looks great on paper. But even if you pulled together a group of reputable fleet owners and drivers, and put together the ideal organization, problems would rise. A fleet owner that also owns a bowling alley might be your star member for many years. But when the bowling alley business gets in trouble, the temptation to cheat drivers grows. Organization staff members may develop a high-school clique mentality and favor their "in" friends over other members, creating a situation where all members are not equally and fairly treated. A great driving team with a pristine background check and performance record this year may get divorced and depressed next year; and in that process quit caring about the truck and the fleet owner's needs.

People are people...at once saints and sinners. No matter how good an organization you design on paper, the human element will always enter in, for the better and the worse. Human failures would also have to be anticipated in organization's bylaws, so when the failures happen (the good fleet owner becomes a cheater, the good driver becomes a drunk) there are procedures in place to deal with them.

If you've read this far, I thank you for listening. These thoughts have been buzzing around in my mind for a few months now. It's nice to get them into public view.

A steering committee would have to be formed to actually start such an organization. The steering committee would be self-appointed. That's the nature of steering committees. People with common interests group together and act to achieve a desired result. In this case, the committee would lay the groundwork for the organization, fund the startup costs out of pocket or by fundraising efforts, and write the bylaws.

At some point the steering committee would dissolve and organizational leaders would run the show. The bylaws would describe how those leaders are selected, what powers they'd have and their chain of accountability.

As you can see, starting such an organization would be a huge task. It would take months, maybe even years of committed effort and faith in the organization's success to make it work. That's why I have no desire to get the ball rolling. My wife and I got into expediting partly to simplify our lives. Getting involved in the above-described start-up efforts would bring us right back into the complexities we left behind. At this point in our lives, our one-truck business is all we want. We're not interested in forming a steering committee and getting the ball rolling.

If others think this concept has merit, by all means, pick up the ball and run with it. Call your friends and industry colleagues. Form your steering committee and together figure out your next steps.

The need is there. If you succeed in bringing the organization into being, you'll find great satisfaction knowing you helped change our industry and a many lives for the better.

Maybe you can call it GOBAG for Good Old Boys and Girls. If your a member, you're "In the bag!"
 

Glen Rice

Veteran Expediter
Interesting idea, maybe a new area for Expeditors Online to address? You would think matching good drivers and good equipment owners would be easier than it is?
 

Dreamer

Administrator Emeritus
Charter Member
As Glen said.. Interesting .. but.. (yeah, that word).. what would keep it from becoming another DAC? Seems like it would be very complicated to get implemented, and then you'd have to convince people to join, etc... then, everyone who DIDN'T want to have their lives examined, would be considered suspect.

Obviously you did some thinking on it tho.. nicely presented!




Dreamer
 

davekc

Senior Moderator
Staff member
Fleet Owner
The above is very simular to DAC which has turned into a major joke. They are currently involved in a lawsuit with OOIDA. While in a perfect world the theory might work.
Under current conditions, DAC really only benefits the companies, not the driver. I would prefer to do my own background checks so a unbias opinion could be reached.
I think word of mouth tends to bring the better folks together rather than using a company that can't verify the content that they recieve from a given company.
Davekc
 

raceman

Veteran Expediter
I have to say this is a great idea. I have no idea how to make it work but a great idea. I have had a horrible time to keep a good driver in one of my trucks. They have not been bad people just lazy. They tend to want to work half a day then vacation. I know there are good drivers out there. I have a woman in one of my trucks that is the best I have ever worked with. Other than that I go through them pretty quick. I wish I could have access to some good drivers.
raceman
 

ATeam

Senior Member
Retired Expediter
You keep it from becomming another DAC or another OOIDA, both of which pit one group against another (drivers/owners), by putting both drivers and owners in the governing positions (probably a board of directors) in equsal proportion.

You keep it from becomming another DAC or OOIDA by focusing the organization on a sole purpose....putting good drivers and good fleet owners together.

You keep it from becomming another DAC or OOIDA by relying only on membership funds, and not sponsor funds, to drive the organization.

You keep it from becomming another DAC or another OOIDA by building checks and balances into the organization's bylaws.

You keep it from becomming another DAC or OOIDA by keeping the organizations agenda modest, actually by keeping it focused on a single purpose...again, putting good drivers together with good owners. Stay clear of the desire to make a difference, get big, influence public policy, grow and make a lot of money by offering additional services to carriers or drivers or owners.

Keep it low key. Keep it focused on a single purpose.

If the organization (half-jokingly named here GOBAG for Good Old Boys and Girls) grew to the point where members came to be recognized in the expediting community as the good folks, and everyone else was suspect, that would be an indicator of success.

And, yes, becomming a member would require to open your books and business history to a background investigation. That's not much of a stretch for most expediters now. We're already investigated by our carriers at least and others if we're hauling hazmat or government loads.

I don't expect the investigation records would be made available to all members, only to the admissions committee that was determining an applicant's membership eligibility. The open-to-all-members info that would be available would be the eBay like scores produced as members rate one another's performance.

Of course an appeals and rating adjustment process would need to be included in the bylaws to protect members from a distruntaled member improperly using his rating power over others in inappropriate ways.

Anytime you create a group of folks with the power to decide who's in and who's out, and who's good and who's bad, you have a highly political arena. Politics in and of itself is not a bad thing. Our nation was founded by a self-appointed steering committee of sorts. They went on to create a set of rules (the constitution) that has stood the test of time. They didn't draft that document overnight.

A study of charter documents will reveal that in most cases, the bigger the entity, the smaller the document. The U.S. Constitution is just a few pages long. State constitutions are longer and much more detailed. County and City charter documents are longer and more detailed still.

Laying the foundation for GOBAG's success would require folks to spend many hours thinking through the issues that may be encountered and writing rules to deal with them. You would not have to reinvent the wheel. America is a nation of organizations. There are thousands of charter documents floating around out there that could be used as a starting point.

But it won't be easy. It would require a huge committment of startup time and travel to meetings by the steering committee members. Teleconferences and Internet resources may be helpful, but face to face meetings would be required. The creative thinking and productive idea exchange that emerges from people present in the same room cannot be recreated remotely.

Selling people on the concept and recruting members will be far easier than laying the organizational foundation in the first place. Once the organization is created, people have something to look at and say yes or not to. Before it's created, steering committee members are destined spend many hours figuring out exactly what the organization will do and how it will do it.

They'll do so not knowing if the idea will sell once they have it all put togetgher. That's a risk steering committee members would have to be willing to take.
 

ATeam

Senior Member
Retired Expediter
>I think word of mouth tends to bring the better folks
>together rather than using a company that can't verify the
>content that they recieve from a given company.
>Davekc


There is no question that word of mouth is an effective way for good drivers and fleet owners to find each other. But it is terribly inefficient. What about the driver that has the credit and capital to start a small fleet? He could quickly become one of the best, but what word of mouth is there out there about him or her? What about the experienced driver that is looking for a new fleet owner? How will he or she access the word-of-mouth network so others will know? What about the brand new driver that has a great business record but no word of mouth standing in the trucking community at all? He or she couild easily find a fleet owner, but how will that driver find a good one the first time out? Those are the needs this proposed organization could serve.

You used the words..."in a perfect worldl." The organization would not be perfect. It can't be. Human beings are involved. But I believe it could offer the industry something better than is out there right now.
 

davekc

Senior Moderator
Staff member
Fleet Owner
One of your biggest issues is there are not enough fleet owners to support this type of program. One would then be forced to turn to small companies in order to generate revenues through a membership ect. This concept has been tried with very limited success in general trucking. Kinda along the lines of Driver Services.

"What about the driver that has the credit and capital to start a small fleet"
Back to word of mouth and experience. Most experienced good drivers would have reservations about signing on with a owner with limited fleet experience and essentially no reputation. Even with capital and driving experience, he is still a unknown entity. There are many other questions that a driver/owner program could not answer. For example, but not limited to; what kind of a relationship does this future fleet owner have with a certain carrier? The larger carriers will refrain from going down this path because of the liability involved. DAC Services is an example of this as pending lawsuits are in place currently from OOIDA.

I think the inexperienced have the hardest time and it may require them to go through several owners before finding that perfect fit.
As they become experienced, they will slowly find the decent owners. The experienced folks already have a general idea who the good ones are. The recruiters were we are at do a pretty good job of matching people together. Your company is the ideal source as they see the performance of the driver and the owner.
In addition, visit with other drivers ect, and a trait one usually will find is that the owner with top notch equipment (not necessarily new) generally will be the better more established owner.
Anyone can buy a truck, but managing it as a business is a little different.
Also, look at the tract record of the owner and how long they have been with their particular carrier. Owners jumping around from company to company would be a signal that they may be in financial distress.
Davekc
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
I've never been an owner in search of a driver.
I've never been a driver in search of an owner.

Those are my bona fides, but as I reread this thread, a few thoughts come to mind. In the begining, or at least in my 1989 begining, the greatest majority of nationwide expediters were family-member teams or solo drivers involved in one-truck operations. As time passed, some folks recognized the lucritiveness of the biz and leased on an additional truck, usually operated by another family member. In fact, at one time, Roberts Express, the nations largest provider of interstae expedited services, would only allow an owner to lease three trucks. Well, times have changed and we see numerous drivers and owners in search of each other...some for good reason and some for all the wrong reasons. But, are there now enough of these souls to justify the expense of managing an owner/operator data base? If so, who are they?

I think the typical expediting aspirant learns about trucking from an acquaintance, friend or otherwise. I think He/she does not visit this web site or any other for the purpose of learning what it's all about, and I think they learn, only from recruiters or their initial contact, about one carrier to which they sign their first lease. Even though most people, I know, think a wanna-be should test the waters by driving for an owner for a year or so, most don't. They buy a truck and learn the hard way that the best way for them to earn a small fortune in trucking is to start with large fortune. These folks don't need 'gobag'.

The next group of aspiring expediters don't have the resources or credit line to buy their own vehicle; they've heard about expediting through friend or family and are hired to drive for an acquaintance of the friend or family. These folks might need 'gobag' but don't have the money to pay for the service.

A rare minority are capable of developing criteria, exploring options, building a plan of execution and interviewing people in a manner that will prove to create a beneficial owner and operator relationship. The A-Team is among such couples, at least they seem to be. They don't need, and problably would not rely on, a 'gobag'.

So who's left? How 'bout the owner who wants to develop or expand a fleet. Would her/his own judgment of a person's character and qualifications, in addition to the currently available and oft required background checks, not be enough, on average, to find a suitable driver? I think the typical person would believe so.

I hate to be a nay-sayer, but I don't think the effort of developing a 'gobag' enterprise is justified in terms of benefit to be derived therefrom. Perhaps a group smarter than I will prove me wrong. If it's for the good of the whole, I hope so.

Terry
 

davekc

Senior Moderator
Staff member
Fleet Owner
Just the same as Terry, I had a relationship with Roberts. My situation was both driver and later an owner. As mentioned earlier, experience and word of mouth is ones best bet. Doesn't hurt to have a little luck as well. We have been very fortunate over the years, and I give alot of credit to Roberts for providing a great opportunity. Like any business, there are going to be risks. Some risks can be reduced while others can't.
"If it were too easy, everyone would be doing it"
Davekc
 

ATeam

Senior Member
Retired Expediter
As I said in the first post, it's just an idea. As such, any hypothetical objection can be overcome with a hypothetical solution. Folks that are interested can take the ball and run with it. Those that are skeptical can opt out. Myself, I'm not skeptical but I am opting out for reasons previously explained.

Expediting is a developing industry. Once upon a time, Roberts was the only game in town. Now there are numerous carriers. Expediting offers more kinds of service today than it did years ago. Once there were dozens of drivers running expedited freight. Today there are thousands. It's only a matter of time before expediters come together in one way or another to create a professional organization for themselves. That's the natural course of events in all industries.
 

davekc

Senior Moderator
Staff member
Fleet Owner
One is not being skeptical if provided the facts. Yes, 10 years down the road anything is possible. But the reality of the business is that there are far fewer fleet owners than there were 3 or 4 years ago. Most have downsized or moved on to other adventures. There was a large amount of trucking businesses that went under in 2000 to 2002. That now has resulted in much tighter financing and available capital. To add to that, increased interest rates, government regulations, and higher operating costs will keep that number from growing at least for a while.
The folks that have been around for a little while will remember the ton of trucks that were sitting on dealers lots through those years. If you wanted to trade, they would give you next to nothing for your truck. On the upside, I bought alot of trucks for pennies on the dollar.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
>As I said in the first post, it's just an idea...Those that are skeptical can opt out.

Given that the A-Team responded to my post, I assume he believes I was skeptical of his idea. On the contrary, I believe his idea has merit. I just believe that there is not now, nor likely in the foreseeable future, a sufficient clientele to make such a monumental effort financially feasible. I base this belief on my impressions of the many hundreds of expediters I have met over the years, owners and drivers.

Furthermore, I believe a team that might get together, to develop a business plan for an idea such as put forth above, would draw the same conclusion I have drawn. Not enough willing customers! If my opinion as stated makes me a skeptic...Guilty as charged
 

RichM

Veteran Expediter
Charter Member
I find it amazing that someone who has been in this business less then a year has all of the answers. Can you imagine a apprentice plumber,welder, etc telling long time experienced members of a trade how to set up and run their business. Many of us started with Roberts Express,the A Team up until afew months back probably had never heard of Roberts Express ,but comes on as a expert in the industry..
 

RichM

Veteran Expediter
Charter Member
There are numerous pifalls involved in starting and operating what is essentially a employment agency.
Look at the potential legal ramifications.

Driver A pays the GOBAG Agency a fee to sign up,an additional fee to be investigated and a additional fee when she/he lands a position.

Fleet Owner B pays to sign up,get his/her financial backgound investigated,(LOL I can see that happening) and pays a fee when Driver A signs on.

All looks good,based on the GOBAG information Owner B hires Driver A and all are happy.One week later Driver A ,who is a closet alcholic gets drunk,has an accident ,wrecks the truck and inocent people are hurt. Driver A walks away with a DUI on his record.
However Fleet Owner B has now to deal with litigation,insurance problems,damages and so on.

Question can Fleet Owner B go back to the GOBAG Employment Agency and say I hired this Driver based on your background checks and look what happened in one week. Unless the Fleet Owner signed a waiver of liability from the GOBAGS ,I think he could hold them responsible.

Just a small bullet,I am sure there are others,however I commend the A Team for their forward thinking.
 
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