Navigating the complexities of the truck driver shortage

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Navigating the complexities of the truck driver shortage

Bob Rutherford is a 50-year veteran of the trucking industry. Thirty of those years were as a member of the TMC where he earned both the Silver Spark Plug and Recognized Associate awards for his contributions to the industry. He is also an Ambassador for the EnergyandMobility.org Conference. Today he shares a paper by John E. Dorer, “Navigating the complexities of the truck driver shortage.”

The powerful brand of CCJ reaches 96,500 subscribers within the freight transport business. Many of these are the fleet executives and managers that have the buying power to grow your business. This multi-channel brand allows for repeated impressions in effective formats.

Navigating the complexities of the truck driver shortage

A Paper by John E. Dorer

Courtesy of Bob Rutherford of CCJ.

The trucking industry, an essential backbone of the U.S. economy, faces an ongoing critical challenge: a significant shortage of drivers.

This shortage — 60,000 as estimated by the American Trucking Associations — is not just a transient issue. It has profound implications on the supply chain, affecting everything from the availability of everyday consumer goods to the stability of national economic growth.

The industry, alongside government entities, is implementing or exploring a variety of strategies to fill the gap, from recruiting a more diverse range of employees and offering specialized training to technological advancements such as autonomous trucks and government policy changes like more flexible hours of service.

Why the shortage?

The trucking industry’s labor challenge is multifaceted, stemming from a combination of demographic, economic and regulatory factors.

Aging workforce
One of the primary reasons for the driver shortage is the aging demographic of current drivers. Many are nearing retirement age, and there aren’t enough younger drivers entering the profession to replace them. At 46, according to the American Trucking Associations, or as high as 60 in CCJ’s 2023 “What Drivers Want” survey, the average age of a commercial truck driver in the U.S. is significantly higher than that of the overall workforce, 42, indicating a generational gap in the industry.

Challenges in attracting younger drivers
A variety of factors have made it a challenge for the industry to attract younger drivers. The demanding nature of the job, long hours away from home, and the perception of truck driving as a less desirable career path contribute to the issue. Moreover, federal regulations require commercial truck drivers to be at least 21 years old to drive interstate, which limits the pool of younger drivers who can enter the field immediately after high school.

Impact of COVID-19
The COVID-19 pandemic had a significant impact on the trucking industry. Many drivers were laid off or chose to leave due to health concerns or to care for family members. The pandemic also disrupted training and licensing processes, creating a backlog of new drivers trying to enter the industry.

Regulatory changes and implications
Over the years, regulatory changes have also affected the trucking industry. Hours-of-service regulations, designed to ensure drivers get adequate rest, also limit the number of hours a driver can work, impacting earnings and job appeal. Compliance with these and other regulations like the electronic logging device mandate add to the operational complexities for drivers and companies.

Economic factors
Economic factors play a significant role in the labor shortage. While truck driving can be lucrative, the pay structure (often based on miles driven or hours worked) and the lack of regular home time can be deterrents. The rising cost of living and stagnant wages in certain segments of the industry also contribute to the difficulty in attracting and retaining drivers.

Impact of the shortage

The truck driver shortage has wide-reaching implications that affect not just the industry, but the entire supply chain and U.S. economy.

Supply chain disruptions
The shortage directly affects the efficiency of the supply chain. With fewer drivers available, there’s a delay in the transportation of goods. This leads to longer delivery times and can cause shortages of products in various sectors, from retail to manufacturing. The just-in-time delivery model, which many businesses rely on, is particularly vulnerable to such disruptions.

Increased costs for consumers
The inefficiencies in the supply chain inevitably lead to increased costs, which are often passed on to consumers. The shortage of drivers can lead to higher shipping rates, and these increased costs can result in higher prices for goods. This inflationary effect can have a significant impact on consumer spending and the overall economy.

Challenges for trucking companies
Trucking companies are under immense pressure due to the driver shortage. They face increased operational costs, including higher wages to attract drivers, costs associated with driver turnover, and investments in recruitment and training. The competition for qualified drivers can also be intense, leading to a bidding war between companies.

Economic impact
Disruptions in trucking reverberate throughout the U.S. economic system. The driver shortage can hamper economic growth, affecting industries that rely on trucking for transportation of raw materials and finished products. It also impacts the labor market, with ripple effects in related sectors like logistics, warehousing and distribution.

Responses and solutions:

Recruitment strategies
Trucking companies are intensifying efforts to attract a diverse range of candidates, including younger individuals, retirees from other fields, military veterans and foreign nationals. These campaigns often highlight the benefits of truck driving, such as competitive pay, the opportunity for travel and, for immigrants, the chance at permanent residency and stable work in America. 

Training and licensing
Specialized training programs are being offered to efficiently prepare new drivers. There is also advocacy for lowering the interstate commercial driving age to 18 to expand the potential driver pool.

Technological innovations
Technological advancements, including the development of autonomous trucks, are seen as a long-term solution to the labor shortage. Meanwhile, improvements in truck technology are making the profession more attractive and less physically demanding.

Policy changes
Revising regulations, such as hours-of-service, and providing funding for training initiatives are ways the government is contributing. Furthermore, improving the efficiency of utilizing immigration programs, which allow skilled and unskilled workers, including truck drivers, to immigrate to the U.S., would benefit the industry.

A complex web of challenges makes potential solutions to the commercial truck driver shortage equally complex. Trucking companies and government agencies must be just as diverse in strategies to put more drivers on the road, ensuring stability in the supply chain and economy.

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My Journey of Career Growth

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My Journey of Career Growth

Learning Without Scars is pleased to introduce our new guest writer, Kurt Pease. He was born on June 8th, 1961, in Portage, Wisconsin. He grew up in Whitewater, Wisconsin, in a family where his father worked as a university professor and his mother was a speech pathologist. From an early age, Kurt was instilled with a strong work ethic that would shape his future endeavors. His writing focuses this week upon those endeavors in, “My Journey of Career Growth.”

After completing his education, Kurt graduated from UW Whitewater in 1983 with a BA in marketing. He embarked on a successful career spanning several industries, where he held various management positions and achieved notable accomplishments.

In 1985, Kurt joined Sherwood Medical in Chula Vista, California, and later in Tijuana, Mexico. As a Master Scheduler and Production Planner, he was responsible for material, production, and sterilization control. During his tenure, Kurt designed and computerized the Production Plan, leading to increased efficiency and reduced backorders by 200% while maintaining low inventory levels. He also played a key role in implementing MRP software.

In 1987, Kurt joined Interactor America in Elkhorn, Wisconsin, as the National Sales Manager. In this role, he oversaw aftermarket sales and marketing activities, including dealer development and profit and loss accountability. Kurt successfully created a nationwide dealer organization and significantly increased potential income to $25 million through targeted dealer benefits. Additionally, he spearheaded the establishment of a $5.5 million wholesale market, representing 20% of corporate sales.

In 1993, Kurt joined John Deere Construction Equipment Company in Moline, Illinois, where he remained until 2017. He held various positions of increasing responsibility, including Territory Sales Manager, Sales and Marketing Manager, and Product Manager. As a Territory Sales Manager, Kurt promoted the sale of products and services to dealer/channel partners in the western United States. He excelled in building relationships and resolving issues between channel partners and the company. In his role as Sales and Marketing Manager, Kurt achieved outstanding results, with annual sales exceeding $80 million and independent distributor sales totaling $20 million. He also assumed the position of Product Manager, where he initiated a start-up program through the Deere dealer channel, overseeing new product development, inventory management, and advertising and promotion.

From 2017 to 2019, Kurt worked at John Deere Financial in Johnston, Iowa, as a Regional Finance Manager. He trained and coached finance managers to improve sales performance and increase market share. Kurt also developed effective channel partner relationships and supervised a team of six employees.

Most recently, from 2019 to 2022, Kurt served as the Director of Customer Support at 4Rivers Equipment, a John Deere and Hitachi dealer, located in Greeley, Colorado. In this role, he led the agricultural and construction organizations’ product support business efforts, aligning with financial and operational objectives to maximize profitability. Kurt excelled in attracting, retaining, and effectively engaging department personnel.

Throughout his career, Kurt Pease has achieved numerous accomplishments, including coaching, and motivating the largest dealer territory to maximize market share, creating replacement component programs and independent dealer organizations, and driving significant sales growth. His leadership, strategic thinking, and ability to build strong relationships have been instrumental in his success.

Currently, Kurt is semi-retired working for a local medical school. In his free time, he enjoys fly fishing in the rivers of the Colorado front range.

My Journey of Career Growth: Cultivating Relationships and Embracing Opportunities

In the journey of my career, there were pivotal moments that shaped my trajectory, often propelled by cultivating relationships and embracing opportunities outside my comfort zone. These two elements, although requiring effort and personal commitment, had a profound impact on my growth and success.

Building Meaningful Relationships

Building meaningful relationships is the cornerstone of any successful career. Whether it’s with colleagues, mentors, or industry peers, the connections we foster can open doors, provide valuable insights, and offer support during both triumphs and challenges. It is often surprising how these connections can come from individuals we least expect. Throughout my career, I have found that every position change or promotion was a result of a relationship that had been previously cultivated. My resume was rarely the deciding factor; rather, it was the bonds I had formed with others. People do business with people, and they prefer to work with individuals they have developed a relationship with. We naturally gravitate towards those who share common bonds and experiences.

During my college years, I worked as a night auditor at a popular resort. It was a wonderful job that allowed me uninterrupted study time once I completed my bookkeeping duties. It was during this time that I met Joe, a German sales and marketing executive at Interactor, a construction component manufacturer. Every night, Joe and I engaged in conversations that lasted for hours. From him, I learned invaluable insights about working for a multinational company, knowledge that college didn’t provide. Joe sensed my eagerness to learn, and even though we lost touch after I graduated, he tracked me down several years later in Tijuana, Mexico, and offered me a role as a Customer Service Manager working with companies like JI Case and John Deere. This opportunity became my foothold in the construction equipment industry. From there, my career flourished, moving from one company to another, consulting at John Deere, and eventually leading to a long and fulfilling career in that industry.

As I progressed in my career at John Deere, from Product Manager to Sales and Finance Regional Manager, I discovered the importance of reciprocity in relationships. By offering support, sharing insights, and actively engaging with others, I not only strengthened my professional network but also cultivated a sense of camaraderie and collaboration that proved invaluable in achieving common goals.

Embracing Uncomfortable Opportunities

Embracing uncomfortable opportunities has also been instrumental in my professional growth. Stepping outside of my comfort zone allowed me to learn and advance in ways that familiarity cannot offer. While the familiar may offer security, it’s often the unfamiliar territory that presents the greatest opportunities for growth. After completing my undergraduate degree in the Midwest, I decided to explore life outside of my comfort zone. My sister had landed in San Diego, and she offered me a place to live while I sought out my first post-college job. It was 1983, and the job market was tough. I was pushing out resumes with little success until a HR manager called me for an interview in southern San Diego. To my surprise, the company was looking for a Master Scheduler for a Maquiladora in Tijuana, Mexico—a role that required scheduling a factory that produced medical disposables. I knew nothing about factory scheduling, nor working in a foreign county, but I spent hours with the Plant Manager, who patiently taught me the ropes. Despite my initial apprehension, this experience taught me how to work in a plant environment where Spanish was the primary language spoken. It was a leap that bolstered my confidence and broadened my horizons. I grew up during those two years, crossing the US-Mexico border every day.

Taking calculated risks has also been a defining factor in my career progression. Whether it was pursuing a new role, exploring a different industry, or spearheading innovative initiatives, embracing change and uncertainty allowed me to seize opportunities for growth and advancement that I might have otherwise overlooked.

The Intersection of Relationships and Risk-Taking

What I have come to realize is that the most significant leaps in my career have often occurred at the intersection of cultivating relationships and taking calculated risks. The synergy between these two elements has propelled me forward in my professional journey. Leveraging connections to explore new opportunities and drawing on support networks to navigate unfamiliar terrain has been transformative. The trust and rapport built through meaningful relationships have served as a catalyst for venturing into uncharted territory with confidence and support. Knowing that I have a network of mentors, colleagues, and allies cheering me on has emboldened me to embrace uncertainty, seize opportunities, and continue evolving as a professional.

Conclusion

In retirement, I have decided to venture beyond my comfort zone by working at a local medical campus. Stepping into the realm of education and mentoring, I am ready to share my wisdom and experiences with aspiring medical professionals. Working at a medical campus will not only challenge me intellectually, but it will also allow me to connect with the next generation of doctors, nurses, and healthcare professionals. It is a chance to inspire and guide these eager minds as they take their first steps towards making a difference in the world of medicine. Although this new journey might be unfamiliar and require adaptation, I am excited to embrace the challenges and enrich my retirement years with meaningful engagement and the satisfaction of nurturing future healthcare leaders.

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What is Cultural Dilution and How to Avoid It

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What is Cultural Dilution and How to Avoid It

Guest writer Jay Lucas highlights some of the risks of rapid corporate growth in, “What is Cultural Dilution and How to Avoid It.”

We’ve all heard the expression, “too much of a good thing ain’t always good.”  Can this really be true when it comes to corporate growth? Can too much growth be a bad thing? Not only does rapid growth put strain on systems and processes, but it can also have an impact on the very thing that is often central to a company’s success, its culture.

Definitions

  • One definition of culture is, “The set of predominating attitudes and behavior that characterize a group or organization.” 
  • Dilution also has a couple of definitions, “1) The process of making weaker or less concentrated. 2) A dilute or weakened condition.
  • Cultural Dilution then can be defined as making predominating attitudes and behavior that characterize a group weaker or less concentrated.

I coined the term “cultural dilution” over a decade ago to describe the effect rapid growth can have on a culture. We’ve been fortunate to have worked with numerous clients experiencing significant growth. In our observation, the challenge hardest for them to manage has been the impact that growth has on culture. Does this mean that a company must put a governor on growth to protect its culture? Or does it mean that it must sacrifice its culture to achieve its growth objectives? The idea that it is one or the other is a false dichotomy. Below are a few suggestions to help protect the culture of a team or organization during times of rapid growth.

Purpose

Clearly define and live the vision, mission, and values. Sounds easy, but the truth is many companies have them but fail to use them when solving problems, hiring, terminating, selecting clients, among others. These are not simply platitudes that adorn the halls and walls of a company or its website. Vision, mission, and values are the foundation and without them no company can withstand the stresses, good or bad, that it will certainly face.

Planning

Commit to long and short-range planning. Long range planning allows for greater vision and is a moving target. The plan should allow anyone at any point in time to stop and lift their head from their immediate task and remember why they are doing what they are doing. Having said that, it has been said that Vision without execution is hallucination. Therefore, short-range planning is also important. The long-range plan is the elephant. The short-range plan is how you make eating the elephant one bite-at-a-time possible. The company should have a regular cadence for re-establishing or creating new objectives. We suggest quarterly. Annual is not frequent enough, and monthly is too frequent.

Systems

Don’t wait to scale until the machine begins to fail. The best way to conduct preventative maintenance is through regular review of your key performance indicators. If KPIs are suffering, then the people, process and/or systems likely need some maintenance. This often comes in the form of re-configured or implemented technologies, training & development, (re-)development of policies, procedures, and even KPIs. We have learned that a balanced scorecard approach to planning helps ensure that goals in one area of the business don’t sacrifice goals or objectives in another. Competing objectives or goals is symptomatic of organizational misalignment.

People

I can’t emphasize this one enough. There are no sacred cows! It makes no difference who the person is. If they are undermining the vision, mission, and values they must get on board, or they must go. Teams and organizations must not allow tenured and even founding members to hold the company hostage as they resist necessary change. As employees are added to keep up with growth, oftentimes legacy employees resist the fresh perspective of new staff. Phrases like, ‘this is not how we do things,’ or ‘this is the way we’ve always done it’ are the kiss of death. If these resistors are allowed to stay, regardless of their inability to evolve, then you have a sacred cow.

Communication

Communication is critical. This can’t be emphasized enough. Great leaders must reinforce the vision, mission, and values of the organization. Additionally, they must ensure that everyone knows their purpose and position on the team and its importance to achieving the objectives. Change is hard but getting buy-in and frequently communicating the “why” behind the “what” is critical when managing rapid growth.

Flexibility

Cultures are living organisms. They must be given room to grow and evolve. The only aspect of the business that should remain constant is the vision, mission, and core values. Pardon the expression, but we’ve all heard the phrase, “there is more than one way to skin a cat.” There are many paths to the destination. Make sure not to hold too tightly to the past. Inflexibility will suffocate the change necessary to stay relevant and alive.

If you are experiencing rapid growth and the resulting cultural challenges, we hope this article is a benefit to you. If you need help augmenting your hiring process, we can help. Our proven process, world-class recruiting tech stack, and our seasoned recruiters are an ideal blend of resources to improve any recruiting process.

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The Bucket Game: Navigating the Pitfalls in Service Management

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The Bucket Game: Navigating the Pitfalls in Service Management

Guest writer Jim Dettore walks us through the ways in which we use different metaphorical buckets to juggle our financial reporting in, “The Bucket Game: Navigating the Pitfalls in Service Management.”

In the complex world of service management, the “Bucket Game” has become an all-too-familiar practice. This game, often played by service managers, involves the shuffling of hours from one job to another across different accounts on the profit and loss (P&L) statement. While it might seem like a harmless balancing act, the implications run deeper, often masking underlying issues and hindering the pursuit of a truly high-performing service operation.

Understanding the Bucket Game

At its core, the Bucket Game is about reallocating hours from one job to another within the P&L statement. For instance, if a particular job takes longer than expected, a manager might move hours from a more profitable job to cover the overrun. This practice creates an illusion of efficiency and profitability, but in reality, it does not affect the bottom line. The total hours and costs remain the same; they’re just distributed differently.

The Illusion of Profitability

The primary allure of the Bucket Game is the appearance it creates. By shifting hours around, a service manager can make a particular job look more profitable than it actually is. This can be particularly tempting in environments where performance is measured strictly by the profitability of individual jobs.

 

Masking the Real Issues

The significant downside of this practice is that it conceals the actual problems that occur during the job. Issues like inefficiency, lack of skill, or process defects remain hidden under the guise of redistributed hours. This lack of transparency prevents the organization from identifying and addressing the root causes of inefficiencies.

The Impact on the Bottom Line

Although the Bucket Game can temporarily improve the appearance of individual job profitability, it does not change the overall financial outcome. The total hours worked, and the costs incurred remain the same. The real danger lies in the false sense of security it provides, potentially leading to poor decision-making based on inaccurate data.

Best Practices to Avoid the Bucket Game

To foster a high-performing service operation, transparency and honesty in reporting are crucial. Here are some best practices:

  1. Emphasize Accurate Reporting: Encourage a culture where accurate time reporting is valued over the perceived profitability of individual jobs. This honesty allows for a clearer understanding of where improvements are needed.
  2. Focus on Process Improvement: Instead of masking inefficiencies, identify and address them head-on. Continuous process improvement should be a priority, with a focus on training, better planning, and resource allocation.
  3. Implement Robust Tracking Systems: Use technology to track time and expenses accurately. This can help in identifying trends and problem areas more efficiently.
  4. Encourage Open Communication: Create an environment where employees feel comfortable discussing challenges and inefficiencies without fear of retribution. This openness can lead to more effective problem-solving.
  5. Align Incentives with Overall Performance: Instead of incentivizing managers based on the profitability of individual jobs, align their incentives with the overall performance of the service department or the company. This approach encourages a more holistic view of success.
  6. Regular Audits and Reviews: Conduct regular audits and reviews of job performance. This helps in keeping track of the actual vs. reported performance and deters the practice of hour shifting.
  7. Customer Feedback Integration: Include customer feedback in the performance evaluation. Sometimes, customer satisfaction can be a more accurate indicator of job performance than internal financial metrics.
  8. Leadership by Example: Leadership should set the tone by prioritizing ethical practices and transparency. This top-down approach can significantly influence the organizational culture.

Conclusion

While the Bucket Game might offer short-term benefits in the appearance of individual job profitability, it ultimately hinders the growth and efficiency of a service operation. By embracing transparency, focusing on genuine process improvement, and aligning incentives with overall performance, organizations can avoid the pitfalls of this deceptive practice and stride towards a truly high-performing operation. Remember, the goal is not just to look successful, but to be successful.

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Utilization of Business Tools: Understanding and Growing the Dealer’s Hydraulic Business

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Utilization of Business Tools: Understanding and Growing the Dealer’s Hydraulic Business

Guest writer Ron Wilson continues his study of the hydraulics side of our industry in this week’s guest blog, “Utilization of Business Tools: Understanding and Growing the Dealer’s Hydraulic Business.”

Customer and industry surveys can play a significant role in identifying and developing growth opportunities in the product support business. The following is an example of how survey information can help shape the hydraulic rebuild/repair business within a dealership.

 

Three examples of survey information:

  • Industry studies & research
  • Study the local market to evaluate the current state by using customer input.
  • Dive into the historical parts & service sales activities to support finding and identify new opportunities.

 

Industry Studies and Research

 

There are many professional trade associations that conduct ongoing studies. An example relating to the hydraulic industry is the information from National Fluid Power Association (NFPA) https://nfpahub.com/stats/market-trends/. This organization provides some free information from their website, and a deeper dive can be obtained through membership status. For example, the information below provides the dollar volume trend in fluid power shipments over the past several years. A deeper dive into more specific hydraulic markets is available from the website such as mobile hydraulic components.

Studying the Local Market

 

Comparing the local market to the national market brings a clearer view of the opportunities and areas to focus on to obtain a deeper understanding of the potential.

 

Designing the Survey of the Local Market is an important starting point.

 

The initial questions of why we are doing the study and what is the intent of the outcome.

 

  • Objective- Define the objective of the survey:
    •  Are we gathering feedback on existing programs/services?
    • Identifying new offerings opportunities
    • Identifying areas for improving current programs/services

 

Below is an example of the customer responses from three surveys conducted between 2018-2023. This allows us to determine changes in the market and customer expectations:

 

  • Ranking 1 & 2 shows the area of high importance to the customer, while 5 & 6 shows the less important. The scale was in a range of 1-10 (1 being of most importance).
  • Changes in the market can be seen in Pick Up & Delivery and Availability of Exchange. Both areas have become of higher importance over the three surveys, while Warranty, Loyalty, Local Support/Convenience, and Performed by Dealer being of less importance.
  • Without the survey we may have selected focus areas that can be costly and not as important to the customer and overlook areas that are of importance to the customer.

  • Develop the structure of the questions. 

Are we trying to identify the: 

  • Satisfaction with current services 
  • Areas needing improvement.
  • Additional services to be added to current offerings. 
  • Overall experience and suggestions with our company and with competitors

 

The information below provides examples comparing rebuild quality and pricing of the common hydraulic components. A key element shown below is the customers feel the rebuild quality is about the same as the competitors, but the pricing is considerably higher.

The above information can lead to discussions and modifications to address these two critical areas of quality of rebuilds and pricing.

 

Utilizing multiple channels to obtain survey responses can provide a broader reach of responses. 

 

A combination of the following can provide a broader view, but requires a little more management of the information going out to the customer and coming back in: 

 

  • Email (SurveyMonkey is a great tool with some limitations based on subscription level)
  • Website/social media
  • One on One visits and interviews (focus groups can be useful in this space as well)
  • Internal data showing data points from an historical view.

 

Analyzing and leveraging the results of the survey is really the important part of effort. We are looking to: 

 

  • Identify trends.
  • Segment results 
  • Prioritize Opportunities and Timelines.

The example below identifies the rebuild seal kits that have been purchased over the counter by customers, which can help identify rebuild opportunities for the dealer’s hydraulic shop. For example, a continued growth in the sales of part number A1000 may provide an opportunity to provide exchange lean cylinder for motor graders, or a rebuild program with a firm rebuild price.

The results of the questions below show the customer’s preferred pricing method. In this case Firm Quote is the preferred pricing method in all examples. If our shop only provides Time & Material pricing and our competitors provide Firm Quote, we will most likely gain business by changing our pricing strategy.

The example below shows the level of interest the customers have in utilizing the dealer’s exchange offerings, and the internal use of dealer exchange by the Service Department. 

The question below relating to Warranty Coverage may be a surprise. Usually, we think of longer warranties as a sales tool/incentive, but in some cases longer warranties may not be a key driver in growing the business. In the case below 180 days warranty is the most preferred by a wide margin. Anything below and over 180 days may not provide as much perceived value based on the customer’s input.

Implement Change based on the results of the survey information will take some time and focus:

  • Translate survey finding into actionable insights will involve:
    • Sharing the survey results with the various internal stakeholders such as:
      • Parts Department
      • Service Department
      • Product Support Sales Representatives 
      • Leadership team
    • Action plans and timelines are critical at this point. It may not be possible to implement everything at once but start with a critical few and roll the other items out within a defined time.
  • Communicate the survey results to the customers sharing the changes/improvements being implemented based on their feedback. 

Hopefully the above example shows how the use of external information, local market analysis, customer surveys, along internal historical data can provide direction, focus, and information to grow and manage your product support business.

Disclaimer- The data shown are not actual results, but modified results of an actual study.

 

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The Indispensable Role of Mentors…

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The Indispensable Role of Mentors…

Guest writer Jim Dettore writes about the importance of mentorship in the heavy equipment and industrial engine trades with this weeks guest blog, “The Indispensable Role of Mentors…”

Introduction:

In the intricate and demanding world of heavy equipment and industrial engine trades, the guidance of a seasoned mentor is not just a luxury—it’s a necessity. From troubleshooting complex machinery to navigating the nuances of customer relations, mentors play a pivotal role in shaping the careers of professionals in this field. In this blog post, I’ll delve into the importance of mentors, the pros, and cons of tribal knowledge, and share personal insights from my journey, where mentors have significantly influenced various aspects of my professional life.

The Essence of Mentorship in the Trades:

Mentorship in the heavy equipment and industrial engine sectors is more than just learning the ropes. It’s an immersive experience that combines technical expertise with real-world wisdom. Mentors in these fields offer invaluable insights that textbooks or formal education often overlook. This hands-on knowledge is crucial in a sector where precision and expertise can mean the difference between success and costly failures.

Pros and Cons of Tribal Knowledge:

Tribal knowledge – the unwritten, experience-based knowledge passed down through generations – is a double-edged sword in the heavy equipment and industrial engine trades.

Pros:

  • It provides practical, time-tested solutions.
  • Enhances understanding of unique, machine-specific quirks.
  • Fosters a sense of community and continuity within the trade.

Cons:

  • Risk of perpetuating outdated or inefficient practices.
  • Lack of standardization can lead to inconsistency in work quality.
  • Potential loss of valuable knowledge if not formally documented.

Impact of a Good Mentor:

A good mentor does more than impart technical skills; they shape your approach to challenges and problem-solving. My personal journey is a testament to this. I’ve been fortunate to have mentors who have broadened my understanding in various domains:

  • Troubleshooting: Learning to diagnose and resolve issues swiftly and efficiently.
  • Customer Skills: Developing the ability to manage expectations and build trust with clients.
  • Business Management: Gaining insights into effective business operations and decision-making.
  • Finances: Understanding the financial aspects of running a business in the trade.
  • Sales: Acquiring techniques for successful selling and customer retention.
  • Product Support: Learning the importance of after-sales support and customer service.

Each mentor brought a unique perspective, contributing to a well-rounded skill set that goes beyond technical expertise. Certainly! 

Lifelong Learning and Becoming a Mentor:

Even now, at the age of fifty-eight, my learning journey is far from over. The beauty of being in the heavy equipment and industrial engine trades is that there is always something new to discover, and I am fortunate to still have mentors who continue to enlighten me with fresh perspectives and knowledge. This ongoing process of learning is not just enriching; it’s a powerful reminder that growth and development have no age limit.

My experience has come full circle, as I now find myself in the role of a mentor to several individuals. Being a mentor is incredibly rewarding and a responsibility I take seriously. It allows me to give back to the industries that have given me so much, shaping the next generation of professionals. I strive to provide them with the same level of guidance and support that I received throughout my career.

This role reversal from mentee to mentor is a unique journey. It has taught me the importance of patience, the value of sharing experiences, and the satisfaction of seeing others grow and succeed. My goal as a mentor is not just to teach technical skills but to instill a mindset of continuous learning and adaptability, which are crucial in our ever-evolving field.

In essence, mentorship in the heavy equipment and industrial engine trades is a cycle of knowledge and experience that keeps turning, from one generation to the next. Whether we are learning or teaching, each of us plays a pivotal role in nurturing this cycle, ensuring the longevity and advancement of our trade.

Conclusion:

In the world of heavy equipment and industrial engine trades, mentors are the unsung heroes. They not only impart technical knowledge but also guide you through the maze of industry-specific challenges. While tribal knowledge has its place, it’s the structured guidance and diverse experiences offered by mentors that truly forge a successful career in this field. My journey, enriched by multiple mentors, stands as a testament to the transformative power of mentorship. It underscores the importance of fostering and valuing these relationships for anyone aspiring to grow in this dynamic and challenging industry.

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How to Measure Sales Performance Unlocking Success: A Guide to Effectively Track and Boost Your Sales Reps’ Performance

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How to Measure Sales Performance – Unlocking Success: A Guide to Effectively Track and Boost Your Sales Reps’ Performance 

Guest writers Debbie Frakes and Steve Clegg return this week in, “How to Measure Sales Performance – Unlocking Success: A Guide to Effectively Track and Boost Your Sales Reps’ Performance.”

In the dynamic world of equipment sales, your sales reps are the driving force behind your success. They not only steer potential leads to becoming valued customers but also play a pivotal role in nurturing existing client relationships. Without a high performing sales team, your business risks stagnation and having customers leave for competitors.

It is essential to employ robust strategies for tracking and improving the sales performance of your representatives. This blog will guide you through the process, emphasizing the significance of regular performance analysis and introducing the effectiveness of Zintoro.com to guide actions that result in improving sales.

Complete a Sales Performance Analysis

To ensure your sales reps consistently meet their goals, conducting a comprehensive sales performance analysis is imperative. This involves tracking key metrics such as:

  • Conversion Rates—Measure how effectively leads are turning into customers.
  • Appointment Setting Rates—Evaluate the efficiency of securing meetings with potential clients and existing customers to capture more of their transaction.
  • Customer Retention Rates—Assess how well your reps are maintaining relationships with existing customers and building these relationships by expanding the products and service purchased.
  • Customer Purchase Frequency and Consistency—Understand the frequency at which customers make purchases and the impact of weekly and monthly purchases.
  • Overall Revenue and Gross Margin—Gauge the contribution of each rep to the company’s revenue and profits.

Setting realistic goals for these metrics is an important part of this process. With regular analysis you can track progress and identify areas for improvement. Zintoro forecasts expected sales with a >95% accuracy which provides realistic expectations for branches and sales territories. 

Why it Matters for Your Dealership

Sales rep tracking is not just about metrics; it’s about the success and sustainability of your dealership. By regularly monitoring performance, focusing on customers that are at risk of being lost, managers can quickly identify underperforming reps and take corrective actions. Recognizing critical Zintoro sales metrics helps in setting benchmarks for the team, providing insights into individual achievements or shortcomings.

Without tracking sales performance and customer engagement, you risk being in the dark about your team’s accomplishments or any underlying issues. Early detection of performance problems allows for timely corrections, action plans, and issue resolution, preventing customer loss.

Implement a Zintoro Sales Performance Analysis

Enter Zintoro.com — your comprehensive solution for an exact understanding of how well your reps are meeting their goals. With Zintoro’s sales performance analysis, you can:

  • Identify Shortcomings—Recognize areas where reps are falling short and gain insights into the root causes.
  • Comparison Insights—Let your sales reps compare their performance with others, fostering healthy competition and motivation.
  • Strategic Actions—Zintoro not only provides insights but suggests actionable steps to enhance customer engagement, retention, and overall growth.

Zintoro’s suggested actions pinpoint precisely what needs to be done to elevate sales performance with real growth both in upturns and industry downturns. If you’re ready to embark on a journey of tracking and improving sales performance, or if you have questions about the most important sales metrics, contact Zintoro today.

Unlock the potential of your sales team with Zintoro.com — where insights meet action for unparalleled growth.

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Are Cybersecurity Vulnerabilities Haunting Your Dealership?

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Are Cybersecurity Vulnerabilities Haunting Your Dealership?

Kevin Landers is the President of rocketwise – an IT and Cyber Security firm based out of Knoxville, TN. He and his team support equipment and commercial truck dealers across North America. He makes his initial blog post for Learning Without Scars with, “Are Cybersecurity Vulnerabilities Haunting Your Dealership?”

Kevin possesses the unique ability to understand, and explain in non-threatening and non-technical ways how technology, business and team members work with, and sometimes, against each other. He has an innate ability to understand how technology works at the basic conceptual level and how it interacts with hardware, software, networking, people and business processes. A rare combination in today’s technology arena. 

He puts these abilities to work daily to make dealerships better by enabling them to deliver extraordinary service with rocketwise’s “Dealer Ally Success Platform”.

Kevin lives in Tennesse with his bride Summer, and their two sons – Caleb and Isaiah.

Let’s delve into a topic that’s crucial for dealerships like yours – cybersecurity. While you might not have old skeletons hidden away, there’s a good chance that cybersecurity vulnerabilities are lurking in the shadows, just waiting to cause trouble. You can’t address what you can’t see, which is why it’s time to shed light on these hidden dangers. This will empower you to take initiative-taking measures to safeguard your dealership from potential cyber threats. Here are some of the most common cybersecurity challenges faced by dealerships:

Outdated Software: The Neglected Nightmare

We understand that updating software can be a hassle, but running outdated software is akin to leaving the dealership doors wide open for hackers. When software vendors release updates, they often include crucial security patches that plug vulnerabilities. Don’t let outdated software haunt your dealership’s digital presence. Keep everything up to date to fortify your online defenses.

Weak Passwords: The Gateway for Cyber Intruders

If your passwords are weak, it’s like handing over the keys to your dealership to cybercriminals. Using predictable passwords like “123456” or “password” is a big security no-no. Instead, establish robust and unique passwords for all accounts and devices. Consider a mix of upper and lowercase letters, numbers, and special characters. Password managers can be invaluable for generating and securely storing complex passwords. As a dealership owner, set guidelines for creating strong passwords and employ software to enforce this policy.

Unsecured Wi-Fi: The Vulnerable Entry Point

Imagine a scenario where a cybercriminal lurks in a parked vehicle, exploiting your dealership’s unsecured Wi-Fi network. Terrifying, right? Unsecured Wi-Fi can serve as an entry point for hackers to intercept sensitive data. Ensure your Wi-Fi is password-protected and use WPA2 or WPA3 encryption for an added layer of security. For critical dealership operations, consider implementing a virtual private network (VPN) to shield your data from prying eyes.

Lack of Employee Training: The Risk of Ignorance

Your employees can either be your dealership’s strongest defense or its weakest link. Employee errors contribute to approximately 88% of data breaches. Without proper cybersecurity training, your staff might unknowingly fall prey to phishing scams or inadvertently expose sensitive information. Regularly educate your team on cybersecurity best practices, including recognizing phishing emails, avoiding suspicious websites, and using secure file-sharing methods.

No Data Backups: The Catastrophic Loss

Imagine waking up to find your dealership’s data vanishing into the digital abyss. Without backups, this nightmare can become a reality due to hardware failures, ransomware attacks, or unforeseen disasters. Embrace the 3-2-1 rule: maintain at least three copies of your data, stored on two different media types, with one copy stored securely offsite. Regularly evaluate your backups to ensure they are functional and dependable.

No Multi-Factor Authentication (MFA): The Risky Gamble

Relying solely on passwords for account protection is a risky gamble, much like having a screen door at the entrance of your dealership. Implementing MFA adds an extra layer of security, requiring users to provide additional authentication factors, such as a one-time code or passkey. This significantly bolsters your account security and makes it challenging for cyber attackers to breach your dealership’s defenses.

Disregarding Mobile Security: The Vulnerable Phones

Mobile devices have become indispensable tools for dealership operations, but they can also be vulnerable to security risks. Ensure that all company-issued devices have passcodes or biometric locks enabled. Consider implementing mobile device management (MDM) solutions to enforce security policies, remotely wipe data, and ensure devices remain up to date.

Shadow IT: The Unwanted Surprise

Shadow IT refers to the use of unauthorized applications within your dealership. While it may seem harmless when employees use convenient online tools, these unvetted applications can pose significant security risks. Establish clear policies for software and services usage within your dealership and conduct regular audits to identify any lurking shadow IT.

Incident Response Plan: Preparedness for the Unexpected

Even with all precautions in place, security incidents can still occur. Without an incident response plan, your dealership could be left scrambling. Develop a comprehensive incident response plan that outlines how your team will detect, respond to, and recover from security incidents. Regularly evaluate and update the plan to ensure its effectiveness.

Don’t let cybersecurity vulnerabilities haunt your dealership. We can assist you in identifying and addressing potential threats, ensuring a robust security posture that protects your business. Reach out to us today to schedule a cybersecurity assessment. Your dealership’s security is our top priority.

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Proactive Inventory Management Can Make Or Break You

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Proactive Inventory Management Can Make Or Break You

Our new guest writer Jay Lucas makes his debut today with his blog post, “Proactive Inventory Management Can Make Or Break You.” Jay has been in the recruiting industry since 1995, beginning his career with a multi-national technical & engineering staffing company.  Later he started his own recruiting firm supporting a variety of industries and clients in Texas.  In 2018 he acquired Jordan-Sitter Associates (founded 1978), a well-established heavy equipment recruiting firm specializing in helping manufacturers and dealers of heavy equipment, as well as equipment rental and remanufacturing companies.  Jay’s predecessors were all retired heavy equipment executives looking for an opportunity to leverage their industry knowledge and networks in retirement.  With more than 40 years recruiting in the industry, Jay brings a deep expertise in recruiting process and technology that couples well with JSA’s deep roots in the heavy equipment industry.  JSA is a divisional brand of Reputable Recruiting, LLC, an assembly of specialized recruiting brands.  The name Reputable Recruiting was established because of our consistent performance and growing collection of Google and Online 5-Star Reviews.

We’ve been recruiting heavy equipment talent since 1978, so we are no stranger to executing searches across a broad spectrum of jobs. Our clients are OEMs, dealers, independent rental companies, and re-manufacturers with a wide spectrum of product applications. It has been said, “Sales sells the first, and Service sells the rest.” I’d argue that it’s hard to have a high-performing service organization if your parts organization isn’t functioning at a high level. If you have a superior product, exceptional sales team, and talented service crew, but you can’t get the parts needed to support the equipment then your path will likely lead to unhappy customers and eventually customer churn.

There are a couple of facets related to parts operations that I’m referring to. The first is the spare parts operations (sometimes referred to as service parts operations) at the manufacturer. This job is largely a supply chain position with a heavy planning and analytics function. Unlike production parts planning, which supports the production of whole goods, spare parts planning has a level of complexity due to the difficulty in knowing exactly when a part will fail. In addition, OEMs carry parts for equipment models that are no longer in production, further complicating the parts planning/supply chain. That said, there are several data points that can be useful in helping manufacturers set their stock levels and re-order points.

Telematics, warranty, and historical demand are key data points to determining the assumptions needed to effectively stock spare parts to ensure an industry-acceptable fill rate (95%+). While telematics data is helpful in stocking spare parts for preventative maintenance, warranty data is helpful in providing insights into specific parts failures and the underlying root cause. As an example, understanding that a machine’s undercarriage can be impacted by soil conditions/types can help planners adjust the expected life of a part by region. Sandy soils are hard on an undercarriage, so the life expectancy of the related parts may be shorter in specific areas. Warranty data may also prove that product design, part design, or part quality could be the cause of premature failure. In addition to telematics and warranty data, lead times have made inventory planning a moving target (as evidenced since Covid), so frequent tweaking of the inventory planning models is necessary to address these challenges.

Dealer agreements with parts stocking expectations can also be a contributor to ensuring machine up-time (and customer satisfaction). Suffice it to say, a strong spare parts operation at an OEM will leverage all the data points needed to help improve spare parts availability, machine up-time and ensure good dealer and customer satisfaction.

On the other side of the equation is the dealer parts operation. This position does have some planning elements to ensure proper inventory levels but also includes high levels of sales and support given the direct relationship with the customer. That said, if the OEM is struggling to keep parts in stock there will be a likely trickle-down effect. Strong communication between the OEM and the dealers is essential to ensuring the dealer parts operation runs smoothly.

As mentioned earlier, if sales sell the first and service sells the rest, you must be sure that your OEM and Dealer parts operations are working well together and sharing the necessary information to keep the spare parts inventory flowing and fill rates at an acceptable level.

If you are having a heavy equipment parts supply issue and need to evaluate making staffing changes in your parts operation, give us a call. We can leverage our extensive database of contacts and a world-class blend of recruiting technology and experience to find you the talent you need. We are so sure of our performance, we guarantee it!

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Why Your Geographic Market Matters

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Why Your Geographic Market Matters

Guest writers Debbie Frakes and Steve Clegg write about why your geographic market matters, and how this concept directly impacts your business.

Why Geographic Market Matters for Your Business

When it comes to whether someone will work with a company or not, there are a wide variety of factors that come into play. Many of those factors are things you can control, like your parts availability, quality of customer service, and how effective your technicians are. But there are some other factors that are not in your control. For equipment dealers, one of those is your geographic market. 

What is an equipment dealer’s geographic market? 

Distance for geographic market is one of the most important business metrics for your dealership. It measures the number of miles and travel time that a customer will travel in order to work with you or buy products from you. The geographic market for a business can vary, based on the industry, market, or region that a company is located in. But if distance is a factor for your business, like it is for equipment dealers, then a customer is very unlikely to do business with you if you’re beyond that distance. 

In order to learn what the distance for geographic market is for your dealership, you must understand where your current customers are coming from. After knowing how far away from you most of your customers are, you’ll be able to recognize patterns, see if there are any outliers, and know how important a factor distance is for building your customer base. 

Why distance for geographic market matters for you

If a prospect is beyond the maximum range people are willing to travel to work with you, then it will be extremely difficult, if not impossible, to turn them into a customer. In general, most equipment dealers have a maximum service area within a 60-mile radius. The reason for this limit is that with a greater distance than that, it’s too difficult for your field service trucks to respond quickly enough to an emergency service situation. 

Geographic market is one of the most important business metrics for you to pay attention to, because if a customer is beyond that 60-mile range, you don’t want to expend any resources going after them. You should use this metric to focus your marketing and sales strategy on targeting people who are within your maximum distance and, therefore, more likely to work with you. 

How to use geographic market to your advantage 

Although you can’t control how far your dealership is from any given customer, you can use knowledge of geographic market, like other business metrics, to make your marketing and sales efforts more effective. You should only be targeting prospects within your dealer’s range, because they have a much greater potential for your business. 

Over the long term, this type of geographic targeting will save your dealership money, help you tailor your marketing and sales messaging, and allow you to become highly skilled at serving customers in your specific area. All these activities are conducive to your long-term growth and success. 

If you want to understand your dealership’s geographic market and other key business metrics for your operation, then we recommend conducting a market analysis through our partner, Zintoro. It will determine how large your potential market is and exactly what the distance is for your maximum reach. This analysis will help guide your business strategy and keep you from wasting resources.

Schedule a Zintoro market analysis today. 

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For our course lists, please click here.