2. SALES

These are the 5 pillars of a Carrier operation.  A set of spokes on the Carrier wheel to success, that gives the stability, and movement toward the operational needs of the customer base as well as the needs of the Carrier.  They are all needed in a form or another, and IF you take a look at most major Carriers; they are the “Directors” or “Executive” positions on the “Board of Directors”or “Mastermind”.  Exemplifying that this business, truly is a organizational or team business.

This is a simplified look at the basic functions for a Carrier Operation.  Each one of the pillars will have an overlay within the others, due to the fact that, the wheel must have all spokes in order to properly function in the trucking industry, as we know it today.  This is the overview of each of these necessary PILLARS OF A CARRIER OPERATION.

  1. Recruitment- Their primary function is to recruit new drivers, personele, and crew members.  They are a supporting role; however, a necessary one in order to grow a Carrier operation.  Their operation finds people to fill the need, primarily of drivers to operate equipment that may or may not be in use currently; however, they do recruit for people inside the corporate office.  Most concentrate on DRIVER recruitment, and allow the corporate positions to recruit themselves or hire on a as need basis for their respecting positional needs in the growing fleet.
  2. Sales- These are the Carrier Agents, Regional or Market Sales, that finds the freight, through the customer base of known and unknown customers; so that the  Fleet can earn the profit, or gross rate from the customer base of the Carrier side.
  3. Accounting-  This department does the accounting and reporting of the numbers of the operation.  Many times they will even handle insurance sign ups for the people of the organization.  This department reports the proper taxing needs (fuel and mileage of fleet), handles payroll, accounts payable and receivables, and financial reporting of the organization.
  4. Safety-  Safety is the rules and regulation overseers with the Carrier.  They ensure the operation is following the Safety regulations of the fleet, in order to maintain the federal and state rules are being followed as required by the governing bodies, From Orientation to driver safety.  Most of the Safety positions within these departments are former drivers that may have come from the road and placed here to oversee the safety of the organization due to the amount of knowledge they acquired in the span of their Career.
  5. Fleet Operations- This is the operations hub of the organization.  How the Carrier essentially gets paid for the service that they provide to their paying customer base of the organization.  This includes maintenance, roadside, driver operations, routing, planning, equipment purchase and leasing, and dispatching. Fleet operations may include divisions like owner operators, company drivers, brokerage fleet, and Fleet owners (this would be fleets leased to the carrier to operate under their MC# and Insurances).  When broken down into the divisions within the Fleet Operations; would provide overall detailed look during accounting process to the President and the Board. My preference is to see these breakdowns as numbers and percentages of operations so that I know which ones may need attention to grow the organization, or to better plan the organization based on the desires of the ownerships desired goals.
  6. Brokerage– This is the outside sales portion, that gives the Carrier the authorization from the FMCSA to broker freight from their customer to an outside carrier.  This can be an additional revenue stream, for the entire corporate structure, it can also be wasted funding if not properly utilized. It does require additional certifications and requirements outside the Carrier portion of the business, and has additional rules and regulations that must be followed in order to add this revenue stream to the business structure.

Want to learn from a Broker that does over $32 Million in Annual Sales?

Facebooktwitterlinkedinrssyoutubeinstagramby feather
Facebooktwitterredditpinterestlinkedinmailby feather

Leave a comment