5 Things That Cost Hauling Companies More than they Realize

Running a hauling company comes with high operational costs. According to the American Transportation Research Institute (ATRI), these costs reached an all-time high of $2.270 per mile in 2023, with non-fuel expenses making up a large part. While fuel and driver wages are obvious expenses, hidden costs can quietly drain profits.

These hidden costs are often embedded in daily operations, making them easy to overlook until they cause significant financial impact. Small inefficiencies, like disjointed systems or poorly maintained equipment, can quickly add up. Recognizing these costs is the first step to controlling them.

This article will discuss 5 key areas where hauling companies often spend more than they realize and how small changes can lead to big savings.

1. Disjointed Operational Systems

Not having a streamlined operational and billing process can cost you in many ways. When your company relies on multiple, disconnected systems for accounting, time-tracking, fleet maintenance, and dispatching, inefficiencies start to pile up.

Here’s how disjointed systems quietly drain your profits:

• Labor costs increase due to repetitive data entry across different platforms
• Time is wasted correcting errors that result from inconsistent processes
• Customers become frustrated with delays, leading to lost business opportunities
• Inefficiency reduces productivity, affecting revenue potential
• Managing multiple systems drives up software and administrative costs

Running a dump truck business can be challenging. The right system should make things easier by putting all your key tasks in one place, like quoting, scheduling, dispatching, and invoicing.

Instead of dealing with scattered information, you’ll have a clear view of your operations. This makes it easier to manage jobs, reduce mistakes, and keep things running smoothly. You’ll spend less time on the hassle and more time growing your business.

For more on how to improve your processes, check out our article "11 Ways to Improve Your Process", where we cover practical ways to make your operations more efficient.

2. Lack of a Good Preventive Maintenance Program

Your preventive maintenance system (PMS) shouldn’t be a paper-based system, as they are hard to keep up with. You will likely get better results with a system that automatically updates the mileage and hours and provides alerts when it is time for a service. Manual systems that require someone to track maintenance schedules often lead to missed services, increasing the risk of breakdowns and costly repairs.

Good maintenance helps you stay ahead of maintenance needs. Here’s what a good vehicle maintenance system can do:

• Automatically track service schedules based on mileage, hours, or time intervals
• Send timely reminders for inspections, certifications, and maintenance deadlines
• Keep detailed maintenance records for each truck, including service dates and repair history
• Monitor repair and service costs to identify high-cost vehicles
• Provide a dashboard view to quickly see which trucks need attention or are out of service
• Automate work order creation for scheduled services
• Manage fuel usage and track out-of-service trucks in real-time

This means fewer unexpected breakdowns, less downtime, and more time focused on keeping your business moving.

3. Improperly Maintained Tire Pressure

Improperly inflated tires can lead to a range of costly issues, including increased fuel consumption, reduced tire lifespan, more frequent blowouts, unexpected maintenance expenses, and even potential legal risks.

Did you know that every 10% reduction in tire pressure results in roughly a 1% decrease in fuel efficiency? That means a truck consistently running with tires 10 PSI below the recommended level could be wasting around $200 per year in fuel alone.

Relying solely on drivers to manually check tire pressure daily isn’t practical. Many drivers resort to quick checks like visually inspecting, kicking, or banging the tires, which isn’t accurate. According to an FMCSA study, only 44% of truck tires are within 5 PSI of their target pressure, while 7% are off by more than 20 PSI.

To minimize the risk of under-inflated tires, consider installing a Tire Pressure Monitoring System (TPMS). This technology provides real-time data on tire pressure, helping maintain optimal levels, improve fuel efficiency, and prevent costly tire-related incidents.

For more details on popular systems, check out our article "Choosing a Tire Pressure Monitoring System for Your Dump Truck".

4. Driver Behavior

Driver behavior such as sharp cornering, hard braking, excessive acceleration, following too closely, talking on the phone, or texting can significantly impact your operating costs. These risky actions often lead to increased fuel consumption, higher maintenance expenses due to wear and tear, inflated insurance premiums, and even potential legal costs in the event of accidents.

You can improve driver behavior with applications designed to track and alert on unsafe driving habits. While some drivers might view these systems as intrusive, reframing the conversation can help. Position it as a tool for safety: “We want to help you get home safely to your family every day. What would your loved ones think about us doing everything possible to ensure you return home safe?”

Today, many GPS and telematics platforms include driver behavior monitoring features. These tools not only encourage safer driving but can also improve Compliance, Safety, Accountability (CSA) scores, enhance overall road safety, and reduce company liability.

5. Lack of Cameras

According to several ATA studies, over 80% of the time, the car is at fault in truck-car crashes. Having dashcam footage can be the difference between a costly legal battle and a quick resolution. Dashcams provide clear, unbiased evidence that can protect your company from fraudulent claims, expensive trials, and hefty payouts.

When choosing a camera system, it's smart to opt for one integrated with a reliable GPS or telematics platform. Systems like Samsara support a wide range of cameras and offer robust data tracking features. While Lytx is a strong fleet dashcam platform, it lacks the comprehensive telematics capabilities provided by GeoTab and Samsara.

Another popular provider of dashcams and GPS is Verizon Connect. I don’t typically recommend Verizon because many of their current customers tell me they aren’t happy with Verizon’s poor support and long contract lock-in.

If you’re currently relying on manual processes and struggling to keep operations efficient, it might be time to evaluate your workflows. Take our DIY Operational Audit to see how your current processes stack up. Based on your answers, you'll receive customized recommendations to help improve your hauling operations.