There are many small carriers with their own operating authority that have between 1 and 30 trucks that could use our help. A lot of these companies are set up to fail or struggle and they work for much less than they should from day one. I have listed some of the reasons they struggle and may need our help. In red is how we can help.
Common reasons they struggle:
1. Small Fleets: Small carriers typically can't haul for large customers that have high volume freight and pay a premium. Network 1 can solve this problem. When we reach out to these customers they view us as a group involved with a network of way over 8000 trucks. One of the reasons they don't do business with small carriers is because they typically are under insured, can't cover the load if their truck breaks down because they have too small of a fleet and they don't like the fact that most small carriers don't have much working capital and typically don't have key talent employed at their operations because they can't afford highly experienced industry leaders. Network 1 can solve these issues. We have highly experienced individuals at the fingertips of the small carrier without them paying a weekly salary for this service. We charge a percentage of revenue. Zero revenue, zero pay!
2. Receivable: A lot of small carriers can't wait 30 to 45 days to collect their receivable. They have to pay for fuel, insurance and driver pay and do not have the capital to cover this. Because of this most of them only haul COD loads or quick pay loads. All the customers that offer COD or quick pay know that the carrier needs this so they take advantage of them. An example would be a normal load that would pay $2,800 if they would hold the receivable will now pay $2,200 because it is COD or quick pay. At this rate most of the profit is gone and the carrier is working and wearing out the equipment for little to no profit or potentially a loss. We can solve this problem. Regardless of their credit history, pending they have no open bankruptcy or tax liens, we can't get them a factoring accounts receivable line of credit that will allow them to advance between 80% and 95% of the receivable within 24 hours of delivery.
3. Dispatch: Most small carriers are limited to talent within their dispatch department. The big reason is they can't afford to pay $65,000 to $100,000 per year to have a top negotiator with a lot of contacts and several years' experience working in the office 10 hours per day 5 to 7 days per week focusing on not only tomorrow but next month as well. A lot of these carriers have an ex driver trying to dispatch. The driver/dispatcher understands trucks and freight real well but they don't understand who pays, who don't, who is a high risk, who is not, were the better freight is, where to stay away from, etc. etc. etc. . . In a lot of cases, the person dispatching is also running a load, fixing a truck in the back shop, working on some safety files, and calling asking people to please pay their bill, they then need to stop all of that and do payroll. They end up dispatching when they find time and they sure don't have several extra hours to negotiate the best rates. It is not possible for them to be an expert in load revenue negotiations and understand where to send the truck. This process has to be studied every day and all day. We have a team that only focuses on load negotiation and dispatch. Our team is experienced professionals/experts.
4. Recruiting: Most small companies struggle to find good drivers to drive their truck. They don't know how to go about this and they don't have a lot to offer the driver because they are small. Network 1 has a recruiting department with a team of about 20 people. These people have one mission, prescreen, recruit and hire professional truck drivers and owner operators. We can solve this problem for them.
5. Consulting: Small carriers run into several problems in many departments from time to time. Recruiting of drivers, retaining of drivers, safety issues, freight claims, accounting, collections, fuel accounts, billing issues, industry standard employee and driver pay plans, sales, new customer launching, crisis management, selling of equipment or obtaining additional equipment, general problem solving and etc. etc. etc. . . Network 1 can solve many of these issues based on a one time consulting agreement.