Solving the Truck Driver Shortage, Whether It Exists or Not.

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Solving the Truck Driver Shortage, Whether It Exists or Not.

Guest writer Bob Rutherford brings us to a new vision with “Solving the Truck Driver Shortage, Whether It Exists or Not.” 

Solving the truck driver shortage, whether it exists or not.

A Paper by Bob Rutherford

The truck driver shortage is the Loch Ness Monster of the logistics world. Some swear it exists. Others think it’s a myth. The rest are just trying to make a dollar off the spectacle.

On one side is the American Trucking Association (ATA), which represents big trucking companies and claim there’s a shortage of 79,893 drivers in the U.S. Conversely, we have the Owner-Operator Independent Drivers Association (OOIDA), who says not only do we have all the drivers we need, but we might also have too many.

My plan to solve this so-called driver shortage? It’s as simple as it is fantastic. Let’s start with Dwight D. Eisenhower, who warned us about the military-industrial complex. You remember Ike, right? The president told us to beware of the monster under the bed, only for us to respond, “What bed?”

Here’s the deal.

America has always been a military-industrial complex. It’s in our DNA. We churn out war machines and warriors like McDonald’s churns out Big Macs, and anyone who says “Make America Great Again” needs a history lesson and a reality check. Even on our worst day we’re still the best house in a bad neighborhood.

The machine needs to be fed. And what does it need? People. Healthy, educated, patriotic people. One key ingredient for this human smoothie? 18-year-olds.

Back in my day, when we turned eighteen it was straight into the meat grinder of Vietnam. June 1966: Career Day in the gymnasium, where defense contractors, community colleges, private enterprises and military recruiters outnumbered the kids. The Marines sweet talked us into becoming Marine recruits with promises of camaraderie and delayed entry buddy programs. My friends and I signed up faster than you can say, “Semper Fi.”

That formative experience gave me a lightbulb moment: why not solve the truck driver shortage and the immigration conundrum in one fell swoop?

Brace yourselves for my ingenious plan.

Let’s set up permanent career day centers at strategic locations. Think of them as the DMV, but with less soul-crushing bureaucracy. Eighteen-year-olds and immigrants seeking asylum walk in and they don’t leave until they’re a cog in the great American machine. Dr. W. Edwards Deming said, “It is not enough to do your best; you must know what to do and then do your best.” So, we’ll train them to do precisely what the machine needs: Warfighters. And what do Warfighters need? Supplies.

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Managing the New Machine Sales Pre-Delivery Inspection Process.

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Managing the New Machine Sales Pre-Delivery Inspection Process.

This week is all about logistics, with guest writer Ron Wilson writing about “Managing the New Machine Sales Pre-Delivery Inspection Process.”

While my wife and I were sitting in a car dealership and listening to the salesperson explain there is a delay in completing the pre-delivery inspection, my memories of the importance of managing the New Machine Sales Pre-Delivery Inspection reoccurred.

Pre-Delivery Inspections provide a foundational starting point for the new machine in the following areas:

  • Customer Satisfaction: Ensures that the customer receives equipment that is fully functional and free of defects and matches what was ordered by the customer.
  • Safety & Compliance: Verifies that all safety features are operational and ensures that the equipment complies with all relevant regulations and standards.
  • Quality Control: Helps maintain high standards by catching and addressing any issues before delivery.
  • Minimizes Early Field Service Calls: A measure of success can be the number of hours the machine has operated from the first day it was delivered to the date first requesting repairs.

PDI Process at an Equipment Dealership Includes:

  1. Development of a PDI list:  The PDI list is usually a list of items recommended by the OEM, and specific areas that have been defined by the dealer. There are common items across all machines and specific items that have been determined based on previous warranty claims submitted to the OEM by the dealer and local dealer requirements.
  2. Receive Equipment: When new equipment arrives from the manufacturer, log it into inventory, schedule and prepare it for inspection.
  3. Assign and Conduct Inspection: Assign the PDI task to a qualified technician, ensuring they have the necessary tools and checklists. The technician performs the inspection, following the PDI checklist and documenting any issues found. 
  4. Address Issues and Final Check: Any defects or problems identified during the inspection are repaired or resolved. Proper warranty claim documentation is completed and submitted back to the OEM. This information can assist the OEM in addressing these issues at the factory, preventing future quality issues on other machines.
  5. Prepare for Delivery: Clean the equipment, gather all necessary accessories and documentation, and prepare it for delivery to the customer.
  6. Customer Handover: Review the PDI report with the customer, demonstrate key features, and address any questions they may have. Best practices of this process should include the machine sales and product support representatives being scheduled to be at the site on the delivery date. Depending on the machine a technician may need to be scheduled as part of the delivery.

Key Aspects of a Pre-Delivery Inspection

  1. Visual Inspection and Functional Tests
    • Check the exterior and interior for any damage, scratches, or dents.
    • Ensure that all parts and accessories are present and correctly installed.
    • Verify that labels, decals, and instructions are in place and legible.
    • Test all mechanical, electrical, and hydraulic systems to ensure they are operating correctly.
    • Check fluid levels (oil, coolant, hydraulic fluid) and top them up if necessary.
    • Verify that lights, signals, and indicators are functioning properly.
  2. Safety Features
    • Inspect safety features such as brakes, seat belts, alarms, and emergency stops.
    • Ensure compliance with safety regulations and standards. This may vary by client.
    • Test any software-based safety systems for proper functionality.
  3. Software and Firmware Updates
    • Check for any available software or firmware updates to be installed.
    • Verify that all digital systems are working as intended and are up to date.
  4. Performance and Operational Checks
    • Conduct performance tests to ensure the equipment operates within the specified parameters.
    • Test the equipment underload (if applicable) to ensure it performs as expected.
  5. Documentation
    • Review and complete all necessary documentation, including warranty forms, registration papers, and manuals.
    • Provide a detailed PDI report, noting any issues found and actions taken to resolve them.
  6. Final Preparations
    • Clean the equipment thoroughly, removing any protective coverings or shipping materials.
    • Ensure all accessories, tools, and documentation are included with the equipment.
    • Perform a final quality check to confirm that the equipment is ready for delivery.
    • Additional attachments are included as defined within the sales document.

Scope Creep of the NPI Process: Over time the NPI list can become outdated and excessive based on experiences that caused a task to be added to the NPI list and is no longer relevant. Some considerations when updating and managing the NPI list:

  • Is the task still needed or has it been addressed in the OEM machine assembly process?
  • Review the time allocated to perform each task. Can the task be connected to another task that would reduce the individual time needed to complete both tasks? 
  • Have there been/can there be efficiency gains that would improve and streamline the overall process? 
  • Updating and managing the PDI process is a critical step in the overall new machine delivery experience for the customer and managing the cost related to overall process within the dealership.

Here is an example of the impact (the numbers below are not actual but we can gain a sense of the impact).

Total units sold 1,000

Average hours per PDI 20

Total Hours 20,000

Hourly Rate $90.00

Total PDI Costs $1,800,000

PDI Cost Savings 10% $180,000

As can be seen a 10% reduction in PDI cost in the above example provides $180,000 for the Sales Department’s profit relating to these 1,000 machines. This also allows the technicians’ hours to be allocated to other revenue sources.

By following a thorough up to date PDI process dealerships can ensure customers receive high-quality reliable equipment, enhancing their overall experience and trust in the dealership, and control the dealership cost of the overall PDI process. A Win-Win for both the customer and the dealership.

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Top Lead Generation Tips for Equipment Dealers

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Top Lead Generation Tips for Equipment Dealers

Guest writer Debbie Frakes brings a practical issue to the forefront with this week’s blog post, “Top Lead Generation Tips for Equipment Dealers.” 

Lead generation is one of the most important tasks for equipment dealers. The process of finding people to work with ultimately boils down to locating businesses who use your products or services and adding them to your sales funnel, where they can be nurtured and converted into a customer. To help you out with this process, we’ve put together some key lead generation tips for equipment dealers that will make it easier to identify and add prospects to your sales funnel. 

Use market research to understand your current customers. 

Market research should be a key part of all your dealer strategies across your entire operation. One of the most important lead generation tips we can share with you is to survey your current customers, before you search for new ones. Surveys will show you which aspects of your business are most important to your customers, what sort of turnaround times they expect and which types of media they respond to. Once you understand that information, you can refine and target your emails, ads, web pages, and sales materials to focus on what the people in your industry care about most. The more effective your marketing campaigns, the more often prospects will enter and respond to your offers to become part of your sales funnel.

Collect information on your website. 

Your website can do a lot more than just highlight the products and services you offer. One of our top lead generation tips is to make it easy for people to give you their contact information throughout your site. Place forms on multiple web pages and, if you can, offer something in return for their information, like a brochure, discount, sample, or eBook with tips and best practices relevant to their business. Also, install a web tagging program that identifies visitors to your site, so you can contact them after they start engaging with your website.

Develop content often.

When it comes to lead generation tips, one of the key dealer strategies is to create content consistently for your website. You should be regularly adding blog posts, case studies, white papers, and videos. Consistent content creation will help improve your rankings from Google searches (SEO), helping more people find and visit your website organically. Plus, high quality content will establish your dealership as the expert in the industry, the most knowledgeable resource for information, products, and services, encouraging more equipment users to seek you out. 

Add chatbots to your site. 

Placing chatbots on your website is a crucial lead generation strategy for equipment dealers. Because chatbots are available 24/7, you can use them to generate leads even while you’re sleeping! Simply set them up to match your brand personality and voice, and they will be your 24/7 digital sales representatives.

Take advantage of every lead source.

Equipment dealers have a variety of sources for potential leads. The problem is that some of them are often neglected. Your sales team should prioritize the most fruitful lead sources, but if you have the time and resources, one of the top lead generation tips is to work them all. Here are some examples of lead sources for equipment dealers: 

  • Customers that are using one part of your business, but not the others
  • Email open reports that show who is interested in what you are sending.
  • Last purchase reports that indicate how long it’s been since someone has purchased.
  • Customer satisfaction surveys that provide feedback to identify unhappy customers.

At the end of the day, the more lead sources you work, the more customers you can bring in the door and increase your sales! 

Our partner, Winsby, can help you generate more leads. 

Winsby helps equipment dealers develop and implement successful lead generation plans using proven strategies. By combining effective emails with professional, easy to use websites, email list verification, calling, and reporting, they can ensure a steady stream of new business coming in the door.

If you have any questions about these lead generation tips or want help implementing your dealer strategies for marketing, contact Winsby today.  

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SmartEquip Sets Its Sights on New Markets

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SmartEquip Sets its Sights on New Markets

This week we present an interview by Jenny Lescohier. She spent some time with Alex Schuessler to give this report: “SmartEquip Sets Its Sights on New Markets.”

Part of Ritchie Bros’ umbrella of companies, SmartEquip looks to expand its equipment lifecycle support and parts procurement platform across the globe

 

To the digital natives in today’s rental industry, SmartEquip’s presence as a service support platform might be taken a bit for granted. Its role has become so integral in its customers’ operations, some users might not be able to imagine the way things used to be done.

If you ask Alex Schuessler, founder, and president of SmartEquip’s International Group, he’ll tell you things have come a very long way since 2000, when the company started.

Alex Schuessler, founder & president, International Group.

 

SmartEquip now supports almost eight hundred suppliers worldwide and more than one hundred rental fleets on its system, including the top five global rental companies.

“For the typical rental company anywhere in the world, approximately 1% of overall spend is on parts. And yet, in the absence of our technology platform, because of the operational overhead associated with parts procurement, it will still be the most expensive type of purchase,” he notes. 

“First, you need to be a service technician to identify the right parts for your equipment. And when you get it wrong – which is often the case, because it’s very difficult to get the right parts for the right make, model, and serial number – the consequences are costly, not just in terms of service technician time, but also equipment performance: even if just one the 10 parts you order is wrong, that equipment will be down for at least another 24 hours.”

 

He adds, “Service technicians themselves are the most expensive employees in a rental operation, and they are increasingly hard to come by. So that’s really what we first focused on, and we subsequently became very obsessive about everything to do with the machine lifecycle and how to reduce associated costs along the way. The ultimate question was, how do we minimize downtime, and how do we accomplish this in an industry-spanning way?”

We talked with Schuessler to find out more about SmartEquip and how it’s affected the way rental companies procure parts and more. Here’s what he had to say:

Rental Briefing: What led you to SmartEquip?

Schuessler: I was originally trained as an economist and political scientist specializing in data science and worked as a junior professor at New York University. One of the things I was always very interested in was how to make the ever-increasing amounts of data the world was generating usable, and actionable for people who were not data scientists.

While I was at NYU, through a weird set of coincidences, I was asked to give some advice to a former Caterpillar executive who had just been invited back to help Cat launch a corporate rental initiative for dealers across South America.

I became one of the co-founders of a global equipment rental consulting group initially called Caterpillar Rental Services Network Inc. (CRSNI), which later rebranded itself as Script International.

We created rental locations across forty-five countries, initially across South America for dealers there, and later, across the Middle East and Europe, too. Much of what we did back in the 1990s found itself in what is known as The Cat Rental Store today.

While we’re doing that, as an economist I became very involved in modeling the power of rental in helping dealers cope with an environment of hyperinflation, as was rampant in those days. But I also began to look at fleet efficiency, return on asset, equipment lifecycle costs, and so many other things. I thought, there’s so much opportunity here for technology to drive efficiently.

We seed-funded SmartEquip with a focus on helping large equipment rental companies like United Rentals, Sunbelt Rentals, and NationsRent support service technicians and automate the procurement of tens of thousands of different parts from hundreds of different suppliers in an efficient, serial number-specific way to reduce service labor and equipment lifecycle costs and improve equipment uptime.

SmartEquip is both a service support platform but also a purchasing and procurement environment.

Rental Briefing: How has SmartEquip grown over the years?

Schuessler: Over the past 24 years, SmartEquip has grown to support almost eight hundred suppliers worldwide across more than one hundred rental fleets through its network, and this includes the top five global rental companies.

A major milestone was the 2021 acquisition of SmartEquip by Ritchie Bros. (now RB Global), which represented a movement in focus by RB Global, which had begun with the earlier acquisition of Rouse. RB Global has long been the global leader in supporting the buyer and the seller in the transactions of equipment, in maximizing the returns for buyers and sellers alike. With the acquisition of services companies, RB Global now turned its attention to maximizing the returns on owning equipment as well.

This, of course, has always been SmartEquip’s obsession: Our goal had never been to maximize the returns on an asset sale, but to maximize the returns on asset ownership.

RB Global bought Rouse a couple of years prior, given its focus on helping companies understand their performance by benchmarking pricing and utilization metrics using localized market information, and providing localized market values by showing in near-real time, what a fleet’s assets are worth in the retail and auction market.

With Rouse and SmartEquip, RB Global offers a full lifecycle experience to the owner, be it for the bookends of equipment acquisition and disposition, or the period of ownership in between the two. It’s become a very full set of solutions that covers everything that affects equipment owners, from the purchase itself, to helping determine when to sell, all while minimizing the cost of service and support along the way.

On a practical basis, the acquisition by RB Global provided us with access to a global corporate infrastructure, strategic accounts and partnerships which have all contributed significantly to accelerating SmartEquip’s growth.

Rental Briefing: What markets is SmartEquip focusing expansion on?

Schuessler: We are currently witnessing record growth rates, not just in North America, but across Europe and Asia-Pacific as well. In Europe we have sufficient penetration among the largest rental companies, who have taken the lead in making us an industry standard, such that we can now expand into supporting mid-sized rental companies as well.

In Asia-Pacific, Japan is a major focus due to its rental-focused market with over 85% rental penetration. Factors like low rental rates increase the potential impact not only of SmartEquip’s cost-reduction solutions, but also of the positive impact Rouse can have to make informed fleet management and capital allocation decisions. Two of the four largest Japanese rental companies are already on SmartEquip, and we are projecting significant growth for the years to come both here, as well as across other APAC nations such as Australia.

Rental Briefing: What challenges exist in these new markets?

Schuessler: Cultural differences can pose initial challenges to adoption, especially in Asia-Pacific markets like Japan, where relationship building is important. However, the goals of optimizing equipment utilization and costs are globally consistent, so the solution is remarkably robust across the international scope.

Unique local market factors may also impact SmartEquip’s solutions. For example, Japan’s low rental rates mean profitability for a given asset is often only achieved toward the end of its ownership lifecycle, at the point of resale. This increases the potential return on SmartEquip’s solutions that aim to reduce costs and inform optimal resale timing across the ownership period, and it increases the potential return on Rouse solutions, by helping users leverage their data to compete effectively and make informed, timely disposition decisions.

Understanding such nuances is crucial for SmartEquip to tailor its value proposition. While technology implementations may face initial hurdles, cloud-based offerings have made SmartEquip more accessible worldwide.

Partnerships are also vital, like SmartEquip’s strategic local partner in Japan that mirrors its business model and relationships. Overall, different markets represent greater opportunities due to SmartEquip’s unique ability to impact equipment ownership economics.

Rental Briefing: What is the SmartEquip e-commerce platform?

Schuessler: Originally launched as a “webshop” extension for equipment manufacturers who were already partnering with SmartEquip, the eCommerce platform has since evolved into a full-fledged solution for any company seeking to sell parts online.

Parts e-commerce requires far more extensive data structures than standard e-commerce applications, and this is where SmartEquip leverages its extensive industry knowledge to ensure accuracy and efficiency, alongside ease of use. This provides a far richer shopping experience in an equipment context, compared to general e-commerce platforms which cannot support the complex transaction surrounding parts.

Recent additions include more extensive options for online payments and user registration, supporting the use of the platform as a standalone solution rather than just an extension of SmartEquip’s Network. It has seen success with manufacturers and with dealers and rental companies who are also selling parts to their customers.

Published on 21 May, 2024

About International Rental News (IRN)

International Rental News (IRN) is written for equipment rental companies worldwide. Our readers operate in sectors including construction, general industry and events, and rent equipment including construction machines and tools, aerial platforms and telehandlers, portable accommodation, shoring equipment, and power and heating and cooling equipment.

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How to Become an Advocate for Skilled Trades

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How to Become an Advocate for Skilled Trades

Guest writer Jim Dettore returns this week with a look ahead to career pathways in “How to Become an Advocate for Skilled Trades.”

How to Become an Advocate for Skilled Trades: Promoting Mechanical Repair and Maintenance Careers.

In today’s society, skilled trades are the unsung heroes, ensuring that everything from our cars to our homes and our infrastructure runs smoothly. Despite their vital role, these professions often don’t receive the recognition they deserve. If you’re enthusiastic about promoting careers in mechanical repair and maintenance and want to become an advocate for skilled trades, here’s how you can get started.

Develop a Strong Work Ethic and Versatility

Understanding and promoting skilled trades starts with a solid work ethic and versatility. Immerse yourself in learning and performing various tasks within the mechanical repair and maintenance fields. Firsthand experience will provide you with the credibility needed to advocate effectively.

Gain Relevant Experience

Firsthand experience is crucial for speaking convincingly about the importance of skilled trades. Seek opportunities to work in various trades, particularly in mechanical repair and maintenance. Volunteering, apprenticeships, and side jobs in different sectors will help you build a diverse skill set and a deep understanding of the trades.

Hone Your Communication Skills

Effective communication is key to advocacy. Whether through public speaking, writing, or social media, improving your communication skills will help you reach a wider audience. Join a public speaking club, start a blog, and engage with audiences on platforms like YouTube, Twitter, and Instagram.

Create Compelling Content

Content creation is a powerful way to reach a broad audience. Start a YouTube channel dedicated to mechanical repair and maintenance, where you can post tutorials, interviews with professionals, and behind-the-scenes looks at various trades. Complement this with a blog and social media posts to share tips, success stories, and industry news.

Advocate for Skilled Trades

Advocacy can take many forms. Speak at schools and community events about the importance of skilled trades. Support scholarships for trade schools and promote the value of blue-collar work through your platforms. Collaborate with trade associations to create apprenticeship programs, participate in trade shows, and career fairs.

Network with Industry Professionals

Building relationships with professionals in various trades and media is essential. Join trade associations, attend industry events, and engage with online communities. These connections can provide valuable insights, opportunities, and support for your advocacy efforts.

Stay Informed and Educated

The world of skilled trades is constantly evolving with innovative technologies and industry trends. Stay up to date by reading industry publications, taking courses, and participating in workshops. This knowledge will ensure your content remains relevant and valuable to your audience.

Be Authentic and Relatable

Authenticity is crucial for connecting with your audience. Be genuine in your interactions and content. Share your successes and challenges honestly and let your passion for the trades shine through.

Seek Media Exposure

To amplify your message, seek opportunities for media exposure. Pitch stories to local news stations, appear as a guest on podcasts, and collaborate with influencers in related fields. The more visibility you have, the more impact you can make.

Leverage Your Existing Skills and Interests

If you have a background or interest in a particular field, use that as a starting point. For example, if you have experience in Failure Analysis, create content around that expertise and expand from there.

Conclusion

Becoming an advocate for skilled trades, particularly in mechanical repair and maintenance, is a rewarding and impactful endeavor. By developing your skills, creating engaging content, and building a strong network, you can highlight the essential work of tradespeople and inspire a new generation to pursue these rewarding careers.

Are you ready to roll up your sleeves and dive into the world of skilled trades? The journey starts now, and the possibilities are endless.

About the Author: Jim Dettore

Jim Dettore is a resolute educator and industry expert, teaching thousands of students in heavy-duty component failure analysis. With a wealth of experience and a deep passion for giving back to the industries he works in; Jim is committed to training the next generation of skilled tradespeople. His dedication to education and advocacy for skilled trades ensures that the vital work of mechanical repair and maintenance professionals is recognized and valued. Through his teaching and outreach, Jim continues to inspire and empower future leaders in the field.

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Are You Thinking About Clowning Around with Six Sigma?

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Are You Thinking About Clowning Around with Six Sigma?

Guest writer Bob Rutherford expands upon the writings he has shared on his LinkedIn as of late with “Are You Thinking About Clowning Around with Six Sigma?”

The other day, I had a Zoom meeting with a befuddled CEO in India who was interested in me giving him the lowdown on Six Sigma since I have been writing extensively about leadership and Doctor Deming on LinkedIn.

So, with a heavy heart and a light sense of irony, here’s the breakdown of this so-called revolutionary quality management system that I shared with him:

The Great Statisticians.

Ah, the legends of modern Quality, the statistical superheroes—Dr. Shewhart, Professor Deming, Professor Chambers, Dr. Taguchi, and Dr. Wheeler. They laid down the law of quality like bosses. Deming even came up with his “14 points for management,” a kind of list of quality commandments for bewildered executives. Who doesn’t love a good commandment from on high, especially when it’s dressed up in statistical jargon?

The Dropout Disaster. 

Enter stage left, an obscure dropout from Uni and a Motorola employee, Mr. Bill Smith. He took Deming’s pearls of wisdom and, like a toddler with Play-Doh, molded them into something unrecognizable. His little experiment resulted in a quality apocalypse, with a mean shift of 1.5 sigma. Bravo, Mr. Smith! Because nothing says “quality” like a dropout with a wild idea and a dab of statistical ignorance.

The High School Huckster. 

Then there’s Harry, Mr. Smith’s partner in statistical crime. A high school teacher with the ethics of a used car salesman, Harry smelled opportunity. He concocted a theory so convoluted that even Einstein would scratch his head. His stroke of genius? Turning Smith’s catastrophe into the cornerstone of Six Sigma, complete with colored belts and logic filters. A true visionary, or maybe just a master of bamboozlement, because what’s a good scam without a touch of intentional obfuscation and some colorful accessories?

The Gullible CEO. 

But wait, there’s more! None of this would’ve taken flight if it weren’t for Neutron Jack, the CEO with a penchant for blindly throwing money at anything that sounded vaguely smart. Despite not understanding a word Harry said, Jack coughed up a cool billion like it was pocket change. Ah, corporate brilliance at its finest. In other words, who needs comprehension when you’ve got deep pockets and a desire to appear cutting-edge?

The Consultant Crawl. 

And lo and behold, with the birth of Six Sigma came a swarm of consultants, emerging from their hiding places like rats in a cheese factory. Eager to sink their teeth into the juicy pie of corporate ignorance, they led countless companies down the garden path, promising miracles and delivering mediocrity because what’s a scam without an entourage of opportunistic consultants, right?

The Fallout. 

Unsurprisingly, the Six Sigma saga ended about as well as a Shakespearean tragedy. According to the gospel of Qualpro, a whopping 91% of Six Sigma companies ended up belly-up. And let’s not forget the shining examples of success—like Ford, proudly boasting a 1 in 5 defective parts average, or Boeing, cutting costs and casualties with equal fervor. Why settle for success when you can have mediocrity and tragedy wrapped in a shiny Six Sigma bow?

The Emperor’s New Clothes.

In conclusion, dear CEOs of the world, Six Sigma isn’t just a quality management system—it’s a masterpiece of deception, a comedy of errors, and a tragedy of epic proportions. So, let’s raise our colored belts to Mr. Smith, Harry, Neutron Jack, and the legion of consultants who turned a simple idea into a billion-dollar farce. 

Bravo, indeed.

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Daimler and Volvo announce truck tech partnership

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Daimler and Volvo announce truck tech partnership

A paper by Jason Cannon

 

Aloha

I thought that I should share this across our blog community because of what this represented. 

Volvo and Daimler sharing software is a truly significant happening. I congratulate them for thinking about their customers first. 

If only there was a standard platform for all equipment manufacturers so allow their customers to select software that they want to track all of their equipment regardless of brand. Think about the possibilities. Electronic Catalogues. Standard Times for Repairs and Maintenance. Instructions on performing repairs. Special glasses like BMW Augmented Reality from the 1990’s to talk to a technician performing a repair and telling them the tools to use, the specification, the repair steps all with graphics on the glasses. Just imagine that.  

Daimler and Volvo announce truck tech partnership.

By Jason Cannon

Volvo Group and Daimler Truck have reached a preliminary agreement to establish a joint venture to develop a common software-defined vehicle platform and dedicated truck operating system, which the companies expect will provide the basis for future software-defined commercial vehicles and make the new joint venture a leading developer of standardized hardware and software. 

 

This technical basis, the companies said, will then enable Volvo Group and Daimler Truck – 50/50 partners in the joint venture – and potentially other partners to provide “differentiating digital vehicle features for its products, ultimately enhancing customer efficiency and experience.” The joint venture is set to be headquartered in Gothenburg, Sweden, incorporating existing assets and resources of both companies into the new organization. The goal, both stakeholders said, is “to set the industry standard for a truck operating system and offer its products to other OEMs as well. To that end the joint venture will provide a common developer platform as a service, on top of which its customers can build differentiating software layers.” 

 

The two commercial truck giants in 2020 established a joint venture to develop hydrogen fuel cells. That joint venture, named cellcentric, included operations in Nabern, Germany, headquarters of the Mercedes-Benz Fuel Cell, with production facilities in Germany and Canada.

 

“Given the rapid transformation of our industry, it makes sense to collaborate to accelerate development, increase volumes and share costs. Software-defined heavy-duty trucks represent a paradigm shift in the transformation of our industry,” said Martin Lundstedt, Volvo Group president and CEO. “Making the truck a programmable device with standardized hardware and operating system for fast product updates will give both companies the opportunity to create value for our customers and their customers though differentiating digital services and solutions. Partnership is truly the new leadership.”

 

The Volvo Group and Daimler Truck venture will operate as an independent entity, with the two continuing to be competitors in all other areas of business.

Jason Cannon has written about trucking and transportation for more than a decade and serves as Chief Editor of Commercial Carrier Journal. A Class A CDL holder, Jason is a graduate of the Porsche Sport Driving School, an honorary Duckmaster at The Peabody in Memphis, Tennessee, and a purple belt in Brazilian jiu jitsu. Reach him at jasoncannon@randallreilly.com. 

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Identifying Problems is the Key to Engaging Website Copy

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Identifying Problems is the Key to Engaging Website Copy

Guest writer Joanne Costin brings practical tips for writers this week in her blog post on “Identifying Problems is the Key to Engaging Website Copy.”

When writing copy for your website, it’s important to identify the problems your products and services solve. You may not realize it, but they are a magnet for website traffic. Uncovering how your products and services solve problems is good for both business and drawing potential customers to your website. 

Listen in on conversations about your products and services on social media. Participate in discussions Forums and within LinkedIn groups to learn the language of customers. For example, I recently used a Reddit forum on layout robots to help me write a client blog post on the topic. 

Problem-focused web content can even lead to new applications for the product. Knowing what equipment works best in a specific construction application adds value, as does versatility. Take a lesson from WD 40 — a brand built around more than 2,000 uses of the product. In this post, they share applications for a new product, the WD 40 precision pen. 

Here are some effective ways construction marketers can find “problem” talk for their website:

1) Create your very own contractor forum.

2) Ask customers to submit new applications for your product.

2) Conduct customer interviews among diverse types of customer groups such as landscapers vs. building contractors. 

3) Monitor forums for questions related to your products. Start a Q&A column or blog on your website.

4) Develop an advisory board for your product comprised of people who use the product or service regularly.

5) Solicit product usage tips from the professionals and build community around information sharing.

6) Give fans reasons to interact with you. Find a worthy cause to unite you.

7) Celebrate your customers. Submit photos of customers using the product to feature on the site. Reward great photos as well as interesting product applications.

You can’t solve a problem until you fully understand it. Make uncovering problems part of your process and see where the inspiration leads you. 

Joanne Costin is an award-winning business journalist, content writer and content marketing strategist with more than 30 years of experience in the construction industry.

You can reach Joanne at Contentforbiz.com.

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Data Data Data

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Data Data Data

Guest writer Andy Fanter writes this week’s blog post on the topic every business owner needs, “Data Data Data!”

I have worked for construction machinery dealers for 30 years now. They send me their sales data and make forecasts. They thrive on year to date, are we doing better than last year?   

Sometimes there are anomalies: maybe they sold a big package to a quarry, mine, or highway project that is not repeated often, or the service department had a number of large rebuilds. They happen, but not often, and this year over last year continues to rule.

Then there is construction data important to the dealers, and retail sales data, consumer spending, it is important to the lift truck dealers. For some reason both of these categories end up in this month versus last month’s comparisons. The latest example, US construction put in place—analysis of seasonally adjusted numbers—that makes me cringe and month over month comparisons. It had one of my great clients nervous. I dove into the data; US construction put in place is not my usual study. Find not seasonally adjusted data…first quarter adds up to $461 billion, first quarter 2023 adds up to $416 billion…10.8% over 2023. Client is up around +5% over 2023, too.

Retail sales:  all kinds of consumer confidence reports, month to month comparisons, stock market selling off retailers, has dealers worried, too. Unadjusted retail sales in Q1 2024 vs Q1 2023 are up 3%. This is a respectable number in a good economy. Consumers spent more in January sales, Valentine’s Day month, and Easter month than last year.

Fanter summary:  you operate your business on year-to-date comparisons, with no seasonal adjustments, and a rare “one time” occurrence anomaly. Why do you look at adjusted data with no year-to-date comparison?

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What Would You Have Done?

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What Would You Have Done?

Guest writer Tom Barry is back this week to ask us to consider how we will approach our market and our leads in “What Would You Have Done?”

“Build a better mousetrap and the world will beat a path to your door.” – Ralph Waldo Emerson

However, it is a long and lonely day sitting at your home or office as an order taker waiting for prospective customers to come knocking or calling! Especially, when you realize that customers either purchase logically and support their decision emotionally or purchase emotionally and support their decision logically. Either way, you must be prepared to cover both sides of these motivating drivers! The more you practice, drill, and rehearse… the better the odds of a favorable outcome! 

In what follows is a true-life portable mobile cellphone sales presentation story which shares insight of contrasting styles of differentiating value propositions, and the importance of strategy preparation. In our country which now boasts nearly three hundred million handheld cellphones, it is a time warp journey through a level of abstract reasoning for Generation Z to appreciate a past world where there was a need for investment justification for the availability, rental, or ownership of a mobile cellphone. Nevertheless, new technology is always a blink away and so are the strategies and skillsets required to be ready to gently lead prospects to the latest and greatest products in a manner that serves to illuminate clear recognition of existing afflictions/challenges so to desire a new improved reality! 

Preamble: By 1985 in the San Francisco, CA Bay Area, the first six (6) cell phone towers were constructed. The TV announcements began with local news coverage that related their completion and soon to come launch of cellphone services. Specifically, the event to showcase the technological event was for five (5) Site Seeing Air Touring Balloons to be launched from remote Bay Area locations. Each group of Balloon travelers were outfitted with a portable cellphone so that the ground-based chase vehicles, also equipped with same, could communicate via their portable mobile phones in order to coordinate the precise wind influenced landing spots for each Air Balloon trek. Timely retrieval, safety, and efficiency were to be showcased! Truth be told, a couple of Air Balloons full of passengers and an experienced pilot crashed and started fires, others landed far off the cellular grid and resultantly, the cellphones did not all perform as anticipated. 

Note: Portable Cell Phones at the time ranged in MSRP from…$2,000 to $6,500. There were two models to choose from. The lower priced unit was akin to a car battery with a carry handle and a phone handset with a keypad (approx. weight of 20 lbs.). The higher price unit was a transportable unit that was designed to be installed in a car with the transceiver in the trunk and a portable handheld handset mounted near the dash which could also be detached and carried in a purpose designed suitcase (approx. weight of 8 lbs.). Both units had handsfree speaker capabilities. The limited battery portable life technology of the day required overnight charging for generating just hours of standby or call usage.

The fixed service fee cost to have the mobile phone access the tower grid after purchase was $45/mo. and this came with 60 minutes of ‘FREE’ talk time. Beyond this price and free included minutes… the cost was .45 cents per minute irrespective of the call being an outgoing or incoming call. It added up quickly!

I worked for a startup affiliate cellular phone business distributor. Their sales protocols were that their telemarketing department generates two leads per day for each Communications Consulting Sales Rep. It was a 1-Call-Close scenario with no follow up opportunities permissible for that sales associate on that generated lead. The prospect was called by a telemarketer and told someone was going to be in their area and could stop by to answer any questions they may have on the new cellular services available in the Bay Area. That was it!

One Call Close:  On a Friday @5:00PM a Telemarketing Lead came through… ‘The last one for today’ – stated the Telemarketing Manager (TM) of a 20+ person Telemarketing Pool to a group of six of us in sales who were already heading towards the exit door. We were off to meet up at the local bar to catch up with the other 12 or so that were already heading that way from the field… ‘California Style’ as I came to learn… as the General Manager (GM) bought the first and last round to end the week so to celebrate a favorable group sales tally.  

‘Who wants it’ – the TM shouted? ‘Who and where is it’ was heard back from our group. Quickly, it was established that two very capable sales reps had already called on that specific lead in the prior months and were rather convincing in relating with brevity that it would be a colossal waste of time.  Even the GM listening in was agreeable that it was likely a waste of time. 

New to this business, I was on the job just 60 days at this point. As the GM was expressing his skeptical view, I noticed the TM’s facial expression reveal a bit of  dejection and so I instinctively grabbed the lead out of the TM’s hand and stated in a self-confident tenor… ’There are no weak leads only weak salesmen’ –  my borrowing a line from the Glengarry Glen Ross book (1984).  Adding as I looked at my watch… ‘it takes me 15 minutes to get there… and only 10 minutes to get to the bar we all are to meet at from that spot. Have my Molson Gold poured and ready and I’ll be there with a check in 2 hours’. My GM thought it was the coolest thing he had ever heard, as my peers were only confirming in their minds that I was just another all-knowing pompous ass from U.C. Berkeley. 

While enroute, I knew that I had to find a way to do something that two very competent sales associates – each with at least a decade or more experience than I in sales did not get done. What did I know? I knew that the other two more experienced sales associates would have covered every nuance associated with the templated presentation on the cellphones, pricing, options, value proposition, etc. They knew how to manage objections and close 1-Call-Close deals. They had at least six months more experience in the industry than I did. What am I to do?

As I neared the appointment location, I assessed if I’m going to sell a mobile phone on a 1-Call-Close… The customer must have the ability to afford it. If he can’t afford it… which only takes a minute to determine… there’s not much that I can do… right? 

This prospect had no idea that I was aware that two other sales associates from my company had already pitched and failed with him. As I parked my car, I convinced myself that this prospect wanted a cellphone and wanted to be both informed and convinced prior to making a final decision. Although, still in the back of my mind I wondered if perhaps he was just lonely and couldn’t bring himself to hang up on a telemarketer. I was about to find out either way.

As I assessed the nuances of what might be relevant to address, I suspected there was a possible lack of warm up or enthusiasm with the other two sales associates. Beyond their both being the top monthly sales associates, I only knew one was a former professional football player and the other was still very British. 

Therein, I decided to establish a connection with this prospect so to foster an amicable rapport. Forge enough of such, so that I could speak directly with personable likeability. I endeavored for the prospect to ride my upbeat enthusiasm to inspire his confidence to invest in this technology in a manner whereby he could sense the favorable aspects of a new reality of what this functionality could deliver. After all, I needed to get to the bar on a forecasted timeline – tick tock. 

Upon arrival at the place of business, I spent 20+ minutes just with the banter exchange and warm up with my prospective customer. All was good and so I began… skipping 90% of my presentation as I knew he had heard plenty of it prior… 

‘Mr. Customer, it is clear to me from our conversation and my observations here today that you are a very successful business owner. I’m sure that when it comes to matters such as making new investments in (his service business diagnostic tools that I had observed) that you do your homework so to make the very best decisions. I don’t have any doubt that you would allow me to be here to waste your time to discuss the prospects of buying a mobile cellphone if you did not already do your due diligence and make the decision that you want to own one for the very same reasons you wouldn’t come to work and try and make money without the use of the phone on your desk.  Am I correct? I got my first ‘Yes’ reply! 

Mr. customer, I know my products and I’ve gleaned from your sharing about your operations here to make the appropriate best model selection for your needs. Aside from the investment price of the equipment, take that completely out of the conversation for the moment, if you are 100% convinced that this is the right decision to proceed and invest, is there anything that stands in your way of approving this decision now? 

‘No…if the price is right, we are good.’  

‘Great! The price is the easy part of this conversation. Mr. Customer… please help me help you on this point…I see you have a 10 key calculator there… let’s look at this from the perspective of big animal pictures… you have four service vehicles plus your own as you stated… and that they easily average 18,000 miles per year each. I’m not that good at math… if you would be so kind… please help me. That’s what… 5 x 18,000 = 90,000 miles per year across your fleet. With all the stop and go in the Bay Area… the avg. speed is 30mph at the highest. So, as a worst-case scenario, divide 90,000 miles by 30mph. That equals what? A few keystrokes later and 3,000 hours a year – was his response.’  

I asked him to divide that 3,000 hours by 40 hours a week. I answered, ‘Yes,’ to his reply that ‘75 weeks’ of possible time savings where the most important user of the portable phone within his business has access to it to be more productive. Mr. Customer, can you imagine coming to work for the next 1.5 years and running your business and trying to optimize productivity and profitability without access to the phone on your desk? His eyes lit up a bit. 

Lastly, if you would be so kind… multiply the value of either your serviceman’s time or your own (the amount you pay or earn in a week) by seventy-five. I don’t need to know the answer…just plug it in for your eyes. As he entered his keystrokes, I shared – ‘The investment in this portable phone that can go with the person with the greatest need for timely and safe operations, not to mention the time outside of work for you as well, makes a lot of sense, wouldn’t you agree?’  

The entire time I am writing up the order and by the time he punches his calculator and gets his answers – I’m turning the paperwork around for him and say …I’ll just need your authorization right there at the ‘X’ (as I laid down a pen upon the agreement) and a check for $2,000 made out to GTE MobileComm.

 (keep in mind that generally, nobody wants to purchase or sign anything… however, they are more than amenable to authorize plenty). 

Without hesitating, and before he picked up the pen, I added…I’ll deliver your phone tomorrow morning by 10:00AM personally and show you all the features. Is 10:00AM best for you or do you prefer the afternoon? If he answers the question about 10:00AM or afternoon…in a favorable manner…he just purchased a portable mobile phone. 

Fifteen minutes later, I walk into the bar with a somewhat hurried/tired look only to find 12 of my co-workers (11 salesman and the TM) and my GM at the edge of their dining seats wondering who was going to win the bet on my sales call outcome that they collectively had been debating and negotiating over the prior hour.  They all looked up as I entered the room, and they greeted me with a collective “WELL – Did you get it”? 

Dejectedly, I uttered… let’s look at this with positivity in that at least the good news is that I’m two minutes early as I looked at my watch… my boss drops his head thinking that he is buying everyone’s dinner and drinks and says ‘and the bad news’? I replied… The bad news is that parking was hell! As I slammed the signed agreement and the customer’s $2,000 check onto the table in front of my GM! My GM jumps up and screamed ‘bullya’ – extending a high-five! 

The prior two sales associates that called on the same customer prior simultaneously launched from their chairs as they walked around the table to see the signed paperwork and inspect the check as they were both in disbelief. 

The Company, Telemarketing Manager, Telemarketer, and I made money as a result and my GM, Telemarketing Manger and I ate for free! From that point forward, I received what I assessed to be the best qualified lead opportunities that came out of the Telemarketing Dept. The Telemarketing Manager used my success story on this call to motivate his department to always give their best efforts. I’m not saying that this preferential treatment was the way it should be – it was just the way it appeared to work out!

In the months that followed, I went on to shatter the company record with twenty-eight consecutive 1-Call-Closes. The GM assigned the nickname of “The Machine” to me during my remaining time there. You would have had to have read the aforementioned book or have seen the movie circa 2001 to fully appreciate!

“There are many people who think they want to be matadors, only to find themselves in the ring with two thousand pounds of bull bearing down on them, and then discover that what they really wanted was to wear tight pants and hear the crowd roar.” – Terry Pearce

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