WATCHWORDS FOR 2009: LEAN, MEAN, AND GREEN
As we celebrate the 200th birthday of Charles Darwin (born February 12, 1809), his famous phrase, “survival of the fittest” still rings true. This simple biological concept is very applicable to the transportation industry, especially with the current economic conditions. To survive and make a profit, businesses are BECOMING LEAN, GETTING MEAN, and GOING GREEN.
When Coke re-did the Mean Joe Greenecommercial for the 2009 Super Bowl using the present day football star, Troy Polamalu, I think they were speaking volumes to the public that “times are changing.” Instead of that warm, fuzzy, everything will be all right feeling, this commercial leaves you with a notion that to survive you have to take what you want and do not take ‘no’ for an answer. Carriers feel this pain every day when they are negotiating for better rates, and they really have to stand their ground; sadly, they also have to fight to get paid for their work, IF they do get paid. The old concept of “show me the money” has changed to “find me a load.”
To help in these tough economic times, companies are cutting costs everywhere. Wasteful expenses are being slashed to help reduce overall costs. I think it is important to be mindful of expenses; however, eliminating too much might cost you more in the long run. To separate expenses, decide what you NEED versus what you WANT. Figure out ways to meet your needs first, and then with a little creative thinking and American ingenuity, find other ways to obtain those things you have on your “wish list” with little or no additional cost. This is an exciting time full of opportunity for those that have the means.
By creating a tough and competitive business environment, you can not only strengthen your business, but also gain respect from your customers as well as your competitors. Education and conservation go hand in hand. Make sure you are getting the best VALUE. Many of the new innovations for going green may have some profound effects, not only on costs but also the environment. It may be necessary to evaluate these proposals not only as a business, but also as a good steward for the environment. Change is often difficult to implement because we become comfortable doing what we have done in the past, but by having an awareness of what we are doing and striving to find a better method of obtaining our goals, change does and will occur, hopefully for the benefit of everyone’s prosperous future.
To stay alive in this industry one must not give up hope. Instead, cut costs, not corners; make sure you know who you are working with and how long it will take to get paid. Create a plan for the future. In addition, understand the dramatic transportation food chain and educate yourself so you are not caught at the bottom. Use your current resources such as brokers and financial institutions to help find loads and get some extra cash. RTS Credit Service will help to insure that you will get paid. It is only a matter of time; things will turn around and natural selection will prevail, just make sure your company is among the fittest.
Lauren Hatfield
RTS Credit
Business Development Manager
