What Ground Transportation Can Learn from the Toilet Paper Shortage
The pandemic brought to light a global conundrum. The shutdowns showed us all how vulnerable and ill prepared we’ve been for such an emergency. Today, there isn’t a company –or industry – that isn’t hyper focused on supply chain management. So, what is it exactly and how does it relate to transportation service?
In its simplest form, Supply Chain Management describes the “flows of goods and services downstream, flows of money upstream, and flows of information both ways. Supply chain management means taking charge of those flows in order to satisfy demand and increase efficiency,” according to Chris Nicholson, CEO of Pathmind.
Just like the toilet paper shortage, our services are reeling in a new reality of lack of human capital and vehicle supply, which has become our own supply chain dilemma. What to do? Well, here’s some researched advice for you that hopefully will be about some relief.
1. Focus your market approach. Stop being all things to all people. Concentrate on a specific market niche for now – whether it is retail business, delivers, contract shuttle or luxury, or if you all your work is overflow for another company (called a White Label business) pick your sweet spot and stay in that lane for now.
2. Keep your core customers an absolute focus! A customer, by the way, can be an end user of your services or a particular affiliate – the point is, make sure your top accounts come first in all you do. Don’t be afraid to turn down a random job if you have to in order to take care of your key clients. They were with you first, and if you take care of them in this shortage situation, they will be your longtime loyal customers in the future.
3. Keep your offerings and your pricing simple and straight forward. Keep your payment policies simple and straight forward too. Do not float money at this time because the cost to collect is more time/money and distraction you can’t afford.
4. Pool your regional resources. Partner up with other local transportation providers who do not compete directly with you. For example, if you specialize in bus wine tours, outsource your sedan work to a trusted luxury operator and visa versa. Those same non-competitive companies may be able to share staffing resources to.
5. Improved operational efficiency through automation is key. Outsource your customer service, your book keeping, maintenance, detailing and all other time-consuming tasks.
6. When short-staffed, your most valuable asset, your people, shouldn't be overworked trying to keep up with unrealistic expectations. Let your employees know what's a top priority and ask them to put their best into that rather than asking them to put their best into everything. Burning out your employees just exacerbates the staffing situation and increases the likelihood of losing more staff due to frustration.
7. Leverage technology. Technology is the great equalizer for most businesses. This is why software-as-a-service (SaaS) has been booming. No longer for the “big guys” technology for just about any price point is available – a whole topic of its own.
One of the biggest and best practices in dealing with low staffing levels is communication. Talking with your employees about the situation. Getting their strategies for coping with work demands is key. Your customers should also be kept in the loop. Keeping lines of communication open and being transparent makes it easier for everyone to understand the limitations and the timeline for resolving issues. Avoid the temptation to say nothing, hoping no one will notice: This strategy almost never works.
