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TRUCKING INDUSTRY CASE STUDIES
The Company is a private mid-sized transportation company located in British Columbia. They have a fleet of 50 trucks and 60 trailers and provide flat deck transportation throughout the Western Provinces. The Company had enjoyed tremendous growth in the last three years. It is a well-run company that had no trouble obtaining financing at favourable terms. However, with the rapid growth, they had reached exposure limits with their equipment finance partners and were finding it harder to obtain the financing they needed to support their continued growth. A new contract presented itself that required an additional ten power units. PowerLease was able to provide a solution.
At its introduction, PowerLease took over the order for the new ten trucks and through its effective strategy; it hire ten professional drivers who are passionate and ambitious about becoming owner/operators. These drivers ordinarily would have been handicapped by the challenges of getting financing for the trucks through the conventional equipment finance organizations as a result of many roadblocks, such as unavailability of down payments, low net worth, and potentially credit challenges. However, because they were on contract with the Company as owner/operators, PowerLease offered them the much-needed financing to lease a truck from the ten new ones acquired by PowerLease for the Company. With this arrangement, the Company has been able to fulfill its new contract and also grow its fleet through the additional ten trucks. As a result of this, they were able to improve their business capacity, and the hired drivers have also been able to achieve their dreams of becoming owner/operators.
Case Study #2 – An Improved Retention Strategy
It is a leading trucking company in Canada. The organization has a fleet of a total of 1,200 tractors consisting of 700 owners/operators and 500 company employed drivers. The Company is popular for its status as one of the top fleets companies to drive for. As it is common with all transport and logistics companies, the organization was faced with serious retention challenges, and the cost of hiring and training substitute drivers was becoming a big issue. While carrying out exit interviews for leaving drivers, the Company discovered that the reason why many of the drivers were leaving was that they could not see any career prospect to become owner/operators in the Company. The Company decided to launch a program that would support the drivers to advance their career and eliminate many of the obstacles that prevent the drivers from becoming owner/operators. This means dealing with credit issues, down payment challenges, and the required business acumen to be a business owner. In addition, the Organization also planned to make the program as objective as possible and to be within the CRA requirements. The program was also expected to be something that’s accessible to all drivers concerned. PowerLease was brought into the picture, and they were able to offer the perfect solution.
PowerLease liaised with the Company and launched a program called ‘Owner Operator Transition Program’. Eligible drivers were selected based on certain criteria to transition to owner/operators. With its purchasing power, the Company was able to purchase new trucks that were properly specified for new owner/operators – proficient trucks without chrome. Some drivers were also offered some of the well-managed used trucks within the Company’s existing fleet, depending on the applicants’ request. PowerLease was able to provide the financing platform based on the recommendation and job letter from the Organization. The plan was to hand over the trucks to the owner/operators after the completion of the payment at the end of the financing term. By this, the truckers were also able to build equity with each payment. The only condition that the Company offered for the owner/operators that will benefit from this program is to remain as an employee at the Company all through the term of the financing. By this, the Company was able to establish its retention strategy, and all owner/operators that benefited from the program were very grateful for the opportunity. Interestingly, all the owner/operators stayed behind at the Company even after the expiration of the financing term.
Case Study #3 – Appendage to Recruitment Strategy
The Company is an Ontario based transportation company with a fleet of 200 trucks and 300 trailers and provided dry van transportation services throughout Canada and the North East US. It is well-respected, and its services enjoy high demand among the target audience. They had to hire more than fifty new owner/operators and/or drivers to meet up with the high demand. Due to the current shortage of drivers in the workforce, this became a big challenge for the company. The recruitment strategy of the Company was the standard in the industry. This includes referral incentives, job fairs, cash incentives, and adverts in a trade magazine. Other companies in the industry had exactly the same strategies, and it was hard to stand out of the pack. In spite of the fact that the company was expending thousands of dollars per month on recruitment expenses, they were unable to recruit the required owner/operators or drivers. PowerLease stepped in with the solution.
PowerLease utilized an exceptional marketing strategy to target specific drivers who desire to become business owners and owner/operators. The focus of the marketing efforts was on the recruitment of drivers within the geographical location with the prerequisite experience. Based on the standard of the organization, PowerLease was able to pre-assess the drivers. Additionally, PowerLease took steps to acquire used and new trucks based on the requirements of the organization. As soon as the Company confirms the employment status of the driver, PowerLease offers the financing platform to the driver as required for the trucks. There was no need for down payment, and neither was the creditworthiness a consideration. At the end of this program, PowerLease delivered fifteen out of the needed fifty owners/operators and new drivers.
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