Setting goals

[Bruno]

How many of you set goals for each quarter or each month? When I got my 2nd truck back in 1998 I set goals for my drivers to hit and we would surpass the goals by more than 10% each time. I stopped setting goals and over the years we just rolled along not gaining any ground. So in December looked over what I had done in this business from the start.

I looked back at the data that I had, I found out that when I set goals the trucks did better. So I thought I would try it again with our fleet starting in 2010. I set a goal based off of what the trucks did last year plus 25% in gross income. We hit that goal and surpassed the goal by 20%. Set a goal and keep on top of it and you may find out that you may gross more income. This was our best 1st Quarter in over 11 years.

So set a goal for the 2nd Quarter and if do you just hit 95% of your goal you will be a happy.

 

[fastman_1]

I've always have set goals, I found with a goal I was always willing to get one more load in.

 

[FIS53]

Nice idea but with my current carrier they just won't give me the calls. Last month I did do more runs but unfortunately the money for all wasn't that great. So again I want to top the old usual number per month and we'll see. I think I'll have to expand sources of calls which has been my project for the last several weeks. Lots of interest so we'll see what happens.
Rob

 

[Turtle]

For me personally, I've found that setting goals for myself and my van are pretty easy, but achieving them without having Dispatch on board is pretty tough, as they have different goals and mine really don't figure into theirs.

 

[greg334]

I think the question should be how do you align your goals with those of the company?

 

[FIS53]

That's exactly what I did when I started with his outfit. My goals and theirs were quite aligned and in doing so and letting them know this and showing them, I was able to increase my take and runs performed and became the number 1 driver in the fleet. However in as much as a business doesn't stagnate or change I kept going and they really stopped advancing. They are still gaining more customers (too many of the wrong type) but now they over hire, refuse to utilize the fleet economically and efficiently as well as refuse to initiate a communications upgrade that is required by law within 2 years. One other point is they seem to be refusing to listen to advice just because it doesn't fit perfectly with their ideas and also in one case an idea was rejected as the customer wanted fewer people involved. Their lack of thought on how to cure problems cost them a customer. They of course blame the broker for all kinds of things including the loss.
Rob

 

[davekc]

In the general sense the only goal setting being done is from the folks who book some or all of their freight. Anything else isn't really a goal. It is only obtainable if the carrier supplies enough freight to meet it. Some places they do, and some places they don't.

 

[OntarioVanMan]

In the general sense the only goal setting being done is from the folks who book some or all of their freight. Anything else isn't really a goal. It is only obtainable if the carrier supplies enough freight to meet it. Some places the do, and some places they don't.

Correct Dave...How does one set a goal when one is not in control of their destiny/future? When one relies on a carrier a 3rd party to such goal... the carrier cares not for your goals in the least...

 

[davekc]

The carrier might care, but only if they obtain their goals in the process. As mentioned, anything outside of that is determined primarily by the carrier rather than the individual.

 

[dabluzman1]

In the general sense the only goal setting being done is from the folks who book some or all of their freight. Anything else isn't really a goal. It is only obtainable if the carrier supplies enough freight to meet it. Some places they do, and some places they don't.

Any business can have a goal.
Some call it a forecast.
Historical data from prior years, when available, will certainly
give an idea of what you need to set your goal to achieve
a profit.
Does a grocery store controll its traffic in its store?
No, but from history they can predict ( forecast ) foot traffic and sales.
What they can do is promote an item in a certain dept. to increase that dept. gross sales to help achieve a new goal which in turn will have an impact on other depts as well.

Many a business doesnt have "booking" control.
But all business can do things to achieve goals, increase income and profitablity.

Expediting isnt any different than any other business when it
comes to running an efficient profitable entity.

Now some are going to cry "you dont control the load you wait for the beep".

Yep, but thats a variable. One that creates the very history
I use to determine our own goals.

Even if you do 100% of your own booking, you can only hit your goal IF you have the right contacts for freight, the right vehicles in your fleet to carry the customers freight, reliable drivers who will show up and then deliver when required, and IF the booker decides to pick up the phone to find a load.

The variables are different, but managable.

I have a minimum gross per week, minimum pay per all miles,
a maximum fuel expense, set amount to placed into a repair fund per job, and a very liberal pizza and beer account.

All created by the statisical data I have recorded over the past three years.

I use the same formulas I used in the Food Distribution world, the very ones I brought from the China Manufacturing plant I worked at, which came from the Wire draw plant I first learned forecasting.

Good business practices are the same with a little tweaking from one industry to another. The better the plan, the better the understanding of expenses and the ability to stay the course needed are things that will help fullfill your goals.

Product and Service may be radically different, but not theories used to predict success.

Every one should have goals.
It is one of the easiest ways to track how you are doing and make adjustments when needed.

 

[davekc]

I don't agree in this business. If one is reliant on the carrier and that carrier fails to produce the quality loads, you are in trouble.
Or, like I said, gain control and book your own freight.
That variable is up to YOU, not the carrier.
One can forecast anything, but that is much different than the result.
I have set numbers as well that I use to determine profitability & ROI, but there is no set goal. How can there be? If I went back three years when conditions were different, the results were different. We have a little different circumstances because I can book my own freight.
Same with this year. This is a good year. Not because there is more freight, but because there are less trucks. Has nothing to do with a set goal or anything else. It is strictly a supply and demand issue.

One can cut costs and they can maximize more of their dollars, but if the truck isn't moving, then those cost saving measures have no real value. You are basing you observations on the fact you are running like we are. Not everyone is in the same situation.
As far as predictibilty on success. Hard to tell. We have been at this almost a quarter of a century and we are still here.
Goal oriented? Probably not. Just crazy.

 

[cheri1122]

I don't set goals, because I'd feel rotten if I failed to make them - and as others have pointed out, it's not entirely within my control.
Only goals now are: do good stuff, avoid bad stuff. Works for me.

 

[davekc]

I don't set goals, because I'd feel rotten if I failed to make them - and as others have pointed out, it's not entirely within my control.
Only goals now are: do good stuff, avoid bad stuff. Works for me.

There you go. I liken expediting to playing a giant slot machine.
So far, I have won more days than I have lost so I plan on sticking with it. Kind of exciting when I pull the lever.

 

[dabluzman1]

I don't agree in this business. If one is reliant on the carrier and that carrier fails to produce the the loads, you are in trouble.
Or, like I said, gain control and book your own freight.
That variable is up to YOU, not the carrier.
One can forecast anything, but that is much different than the result.
I have set numbers as well that I use to determine profitability & ROI, but there is no set goal. How can there be? If I went back three years when conditions were different, the results were different. We have a little different circumstances because I can book my own freight.
Same with this year. This is a good year. Not because there is more freight, but because there are less trucks. Has nothing to do with a set goal or anything else. It is strictly a supply and demand issue.

One can cut costs and they can maximize more of their dollars, but if the truck isn't moving, then those cost saving measures have no real value. You are basing you observations on the fact you are running like we are. Not everyone is in the same situation.

How does retail forecast sales when they rely on the most unrealiable source, the consumer.
I totaly disagree with your rational on this.

I would put my numbers up against any of your trucks.

I totally agree that we are having a "feast" this year because of the truck shortage. Good for us who survived.
I did very well last year and did a forecast in Sept for my bank stating I fully expect 2010 to surpass 2008 by 15%.

Understanding the impact of the ups and downs of the economic conditions is nothing more than an adjustment noted by the fact of relevant conditions.
Of course every year has something different.
Some will make a huge profit because of a variable others unfortunatley will fail.

You believe your industrys work is far tougher than someone elses.
I dont.

I do believe their are a lot of untrained "business minds" in the trucking industry.

As far as you having more control because you book your own freight, maybe in your circumstance,but there are a lot of poor booking agents.

I find it laughable for someone to think an owner operator working on an exclusive with a company doesnt have choices that will effect their profitablity.

Maybe, you have never been in my situation to experience what I speak about. ( I admit I havent been in your arena )
but trust me, I do have a say in my goals, its just my view isnt a limited as you try box me into, my daily variables run a much wider path than "waiting on a beep".

 

[davekc]

Dave,

Not sure where you are getting I am thinking this is a tough industry comparable to others?
I have another business outside of this but not sure if that means I am untrained? Maybe?

And as far as brokers, I don't know if you know enough to make that statement. One of them happens to be the carrier you run for.
As for the beep. If yours isn't beeping you aren't running.
No need to complicate the simple.
We will just have to agree to disagree on this one.

 

[dabluzman1]

I don't set goals, because I'd feel rotten if I failed to make them - and as others have pointed out, it's not entirely within my control.
Only goals now are: do good stuff, avoid bad stuff. Works for me.

WOW, you dont set goals but then you do.......
Are you making a point, because davekc said "there you go"
and I am trying to figure out, what went where.

Failure in a goal isnt always a bad thing. It often shows a flaw in a plan/goal that should be addressed.

I can forecast 200,000 + gross this year based off of doing 200,000 + gross the past three.
Did I forecast 205,000 or 250,00 + gross for 2010, well thats
between me my accountant and banker, and anyone who want to spend $1000 to see my financials. ( Information has its costs).

I have been involved in sales and operating forecasting for over 20 of my professional work years. In a variety of industries. Every business does need them, unfortunatley many a business person doesnt know why or care.

Thats a choice made by someone who can live with those results. That may be a good goal.

I monitor everything. I know my costs, I know where good freight is available for my dispatchers ( so they call me vs you call them) no diff in my eyes.

Business is business, all have risk.

Its how you plan, re-act and perform that sets one apart from another.

 

[dabluzman1]

Dave,

Not sure where you are getting I am thinking this is a tough industry comparable to others?
I have another business outside of this but not sure if that means I am untrained? Maybe?

And as far as brokers, I don't know if you know enough to make that statement. One of them happens to be the carrier you run for.
As for the beep. If yours isn't beeping you aren't running.
No need to complicate the simple.
We will just have to agree to disagree on this one.

We do disagree no doubt.
The untrained comment wasnt directed at you, I believe you are a very competent businessman.
What sets us apart is core belief of what a goal is or even if needed.

Sometimes it the simple things that are over looked and undermines.

And if mine isnt beeping I will make a decision as to how to get to beep. If it continues to be silent, I will make a decision as to who I should be contracted to next.

All variables that must be addressed to met my goals.

Agree or not, its how I do it.

 

[DannyD]

Yes I set them. Sometimes I fall a bit short, but am still heading in the right direction. Or I make a detour by choice. An example is back in Jaunary I was hoping to have all credit cards paid off by April. That might have been a little ambitious. I've now got July as a target date.

The detour in this is I want to get a truck that I can live in. My current vehicle just isn't set up to be living on the road. There's really no sense putting $$$ into it because it's not big enough to hold much of anything once 2 skids are in there.

So if/when I find the right one, the CC's might get pushed back some. A new truck would extend the short term goal but provide a long term benefit.

 

[Turtle]

A "forecast" and a "goal" are different things. One, a forecast, is a prediction of a future condition or occurrence, usually based in no small part on historical data and adjusted for the current prevailing conditions, while the other, a goal, is something that it to be achieved by taking certain steps within your control to make it happen.

Does a grocery store control its traffic in its store? Actually, yeah, they can to a large degree, by marketing and promotion. Same with other retail operations. They adjust the marketing and promotion (taking certain steps) to make their goals happen. In expediting, no amount of personal promotion and marketing will create additional emergency freight for me to haul.

If I were to set a gross revenue goal, and have it be a realistic number, it would be nothing more than a forecast based on historical data and then be adjusted for the current prevailing factors. Unless I am in total control of finding my own freight, then any goal based on a forecast is simply a hope that I hit that goal, as what all it takes to achieve the goal is out of my control.

Instead, I closely monitor expenses and try to remain as profitable as possible. That's my goal and the factors involved in achieving it are totally within my control.

 

[Steady Eddie]

I do a budget every Oct for the next year. You can do one based on history, even in this line of work. I also do a rolling forecast three months ahead. After the first year you have some history that can be adjusted to trends for the next year’s budget. Doing a 3 month rolling forecast adjust your numbers to current trends. Very easy to do and takes less than a minute each month, (if you keep it up to date).

Having money in the bank at the end of the month is not good enough for me. I need to know how it got there and if I can do anything to get more in there.

A monthly Variance report showing why you are above or below budget by line item is always good to have if you sit down at the bank…. If you look good on paper they won't look hard.