Truckers play a vital role in the success of the supply chain. Modern technology which helps in executing the financial aspects of the supply chain industry is lacking in the trucking industry. Hence solutions for fair and on-time payments, which are crucial to mitigating trucking driver shortage, must be considered. According to Indeed, a trucker’s median salary is $0.48 to $0.75 per mile for company drivers and up to $1.79 per mile for owner-operators.
Solo drivers and owner-operators earn more but have certain restrictions on their drive time. Their expenses reduce their take-home pay. The cost of owning and operating a truck, rising fuel prices, and inadequate compensation has led to a truck driver shortage. These are just a couple of factors causing a trucker shortage in the country. Therefore, a viable solution like freight factoring can mitigate some of the truck driver shortages.
What’s Causing the Current Trucking Driver Shortage- It’s More Than Just Lack of Interest Among Drivers
According to Fox Business, the truck driving shortage has led to disruptions in the supply chain. About 80,000 positions were left unfilled in 2021! The inflation and overall unemployment in the country may have led many people to enroll in trucking schools, but the trucking driver shortage will take time to end. How will it improve the poor and untimely wages, hurting the industry and leading to the shortage of truck drivers? Many are lured to the sector because it seems like a good-paying profession. But once they start working, the reality sets in, and many feel that the industry has failed them. There is a trucker shortage because of these factors:
- Low pay
- Lack of respect
- Poor working conditions
- Sheer demand of the job
Faster Payment Cycles and More Reliable Pay Schedules Keeps Drivers on the Road, Not Chasing Invoices
Truckers face the challenge of getting irregular schedules. Many companies still use manual methods of keeping records, which can result in inaccuracy. Besides, not being compensated on time is one of the truckers’ most prominent issues. Partnering with a reputable freight factoring company can solve many of the issues resulting from irregular payments to truckers, thus reducing truck driver shortages.
Truckers must focus on hauling the current load and pay attention to their driving rather than chasing invoices. Cutting-edge technology can help drivers maintain that focus in a stress-free environment, which will help lower the shortage of truck drivers.
Better Payment Planning Amounts to More Flexibility and Scaleability in Accepting Loads
Poor payment planning is the primary cause of the trucker driver shortage. By following some simple methods, truckers can budget their money and plan their load effectively:
- By adopting route optimization, truckers can plan for better routes and cover more areas in a delivery.
- Better payment planning can result in bigger and better vehicles. Thereby, more products can be loaded on the trucks. Better route planning is a direct advantage of bigger and better vehicles.
- Truckers can improve efficiency by using technology like truck scales to load and unload trucks, thus resulting in a shorter loading-unloading time.
Better planning of the load helps truckers plan their finances better. With proper payment processing and planning, truckers can get paid on time, thus making the industry more attractive for drivers. The trucking driver shortage can therefore be significantly mitigated.
Easier Payment Processing Means Less Back-Office Hassle and More Focus on Customer-Centered Tasks
Trucking driver shortages that arise from inconsistent invoice data can be significantly mitigated by partnering with a freight factoring company. With less back-office hassle, the time spent dealing with invoices can be spent on delivering the goods to customers on time. With an impending primary truck driver shortage in hand, companies, solo drivers, and owner-operators must consider partnering with a transportation factoring company to optimize their time and focus on customer service.
Lite Analytics Mean Less Stress in Understanding Your Overall Profitability, Expenses, and Growth
Financial stability, fostered by timely payment of fair wages, is key to mitigating most truck driver shortages. Suppose KPI data is available in a single app. In that case, it can increase fleet efficiency by understanding the essential finances, safety indications, fuel charges, and many other factors creating a system to help truckers. Backed by faster payments and information on profit and expenses can help truckers plan their next load and foster overall growth. Truck driver shortages arising from late wages and unplanned truck loads can be mitigated.
Overcome the Stress of the Truck Driver Shortage With BasicBlock
The truck driver shortage is crucial in the supply chain industry. With growing E-Commerce and overall demand for products, truck driver shortages can be considerably mitigated by faster payments to truckers. Partnering with a freight factoring company that uses cutting-edge technology to provide all back-office services can reduce truck driver shortages in the trucking industry.