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Success in Expediting: Part 3 -- The Expediter’s 5-Piece Toolkit for Success in Any Market

Editor's Note: Perhaps you're considering expedited trucking as a new business opportunity where you can break free from the office, travel the country, and take on new and interesting work with each trip. Or, you're a veteran expediter looking for new ideas and advice to help you not only survive but thrive in today's market.

Whether you're just starting out or have been in this business for many years, one thing's for sure: knowledge is power. That's why at ExpeditersOnline.com, we've put together a new three-part series on "Success in Expediting" to empower you with the market insight, expert advice, and motivation you need to succeed as an expediter for the long-haul.

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While freight has been slow the past several months (which we address in Part 1), it's not all bad news. In fact, a challenging market actually offers three key opportunities -- which we "unpacked" for you in Part 2 -- that can help you not only survive but thrive in the Expediting Industry.

But, what tools do you need so that you can capitalize on those opportunities? That's the focus of this third and final article of the "Success in Expediting" series, where we'll reveal five important tools -- timeless principles for success -- to help you take charge of your future and establish a career that's built to last.

1. Continuous Cost Controls
Are you operating your business as lean as possible? Whether the freight market is slow or strong, your long-term success is determined by how well you manage your expenses. The leaner your costs, the stronger your business will be in even the harshest economic conditions. So, continuously examine all your business expenses to ensure you're driving the lowest costs for maximum value.

Where can you uncover cost savings? The first area to consider is your truck, says Paul Williams, chief executive officer for Expediter Services, which provides business and operational support services for drivers and owner-operators. Newer trucks with advanced engines and transmissions offer significantly better fuel efficiency than previous models. They're also more reliable and likely to be covered under warranty, helping you control maintenance and repair costs, especially if there's a major component breakdown during the warranty period. So, if you're operating an older truck that has poor fuel economy or requires major repairs to keep it on the road, it may be time to upgrade your truck.

But what are your options if you need to upgrade your truck but don't think you're ready to purchase a new one? One resource to consider is Expediter Services, which relies more on work history than on down payment or credit history to finance new and existing owner-operators.

Other areas to examine for cost-savings:

• Insurance. Are you getting the best rates possible on your existing policies? When was the last time you had them quoted? Are you aware that there are discounted fleet rates available to owner operators -- and have you asked for those rates?
• Fuel. What discounts are you getting through your carrier or other industry organizations that offer fuel purchasing programs? "Think about it: If you could save 20 to 30 cents per gallon, that's about $200 to $300 per month going back into your pocket," says Williams.
• Maintenance and repairs. When money gets tight, resist the temptation to skimp on regular maintenance. But when you stay on top of proper preventive maintenance schedules, you actually lower costs by maximizing tire life and reducing risk of premature breakdowns that require expensive repairs.

"Saving just a fraction of the cost per mile can be huge," says Williams. "Our trucks average about 12,000 total miles per month. So, even if you save just a penny per mile, that's $120 per month. When you talk about paying bills and putting groceries on the table, every $100 matters."

2. Community.
Don't try to go it alone. Connect with other expediters and industry professionals for support, advice, education, and encouragement.

Where can you build community?

A great starting point to make connections is the ExpeditersOnline.com forum, where you can access topics and communicate privately with other expediters.

Then there's Expedite Expo 2016 on Friday, July 15, and Saturday, July 16, at the Lexington Center in Lexington, Ky. The Expo is the only trade event focused exclusively on the expedited trucking industry, where you can connect with more than 5,000 annual attendees and exhibitors in person.

Long-time expediter Linda Caffee advises that as you meet new people, look for folks who could be good mentors. "Phone numbers to reach mentors are probably the most important thing, especially for a new expediter," says Caffee. "You want to be able to call somebody who has been there, done that, and knows how to handle situations like you're in."

She also recommends looking for mentors who "don't let you start feeling sorry for yourself. You want people who will keep you motivated and help you make good choices."

Williams with Expediter Services recommends tapping into the knowledge and support available from your carrier and other industry organizations. "If you're going to succeed in this business, you need access to good data and good support to help you make good decisions. There are communities out there, like ours, that can help you win in this market."

3. Carrier Stability
Does your carrier have long-term shipping contracts in place or do they depend on load boards to get the majority of their freight?

"If most of their freight comes from load boards, it's time to find another carrier," says Williams.

That's because load boards are online matching systems that create a "race to the bottom," where shippers and brokers post their freight needs, and carriers bid for those loads, with the award often going to the lowest bidder.

But carriers that generate the bulk of their business from long-term shipping contracts offer greater financial stability and more profitable loads for owner-operators and drivers.

4. Credentials
"To make more money, especially when rates are down and you've cut expenses, you need to get specialized endorsements. This will make you a more needed and valuable commodity, so you can get more loads," says Caffee.

Williams agrees. "Drivers can get hazmat, DoD [Department of Defense] and other endorsements. Rather than allowing yourself to get pigeon-holed into one type of freight -­
which limits your income potential -- be willing to upgrade your qualifications to give you a much stronger competitive advantage in landing more profitable loads."

5. Cash Reserve
The reality is that you'll have to deal with uneven cash flow no matter what the overall freight market is doing, especially if you're just starting out in expediting. So, how do you smooth the gaps? That's where cash reserve comes in.

Also, all it takes is one major, unexpected expense to put you out of business. So, if your truck breaks down, requiring a $2,000 repair and several days of downtime, do you have enough in reserve to get your truck back on the road and earning income for you? Or, if the high-dollar cargo you're hauling gets damaged, do you have the money to pay the deductible? Or, if you have an unexpected health issue that leads to high medical bills and lost income, are you prepared?

The Bottom Line
In expediting, as in any other business, there's so much out of your control. But there are things you can do to take charge of your financial future, no matter what the market throws at you. And the starting is to make sure you have all five of these tools in your "Expediter's Toolkit."