I recently read an article in the Wall Street Journal that states anyone ordering a new heavy-duty truck will have wait until sometime next year to get it, assuming strained manufacturing supply chains hold together. We’re talking 2019…sometime in 2019.
The article further states:
An unprecedented run of orders for big rigs has pushed the backlog at truck factories to nine months, according to industry analysts, the largest since early 2006, when truckers stocked up to get vehicles in place before tougher environmental restrictions would take effect. Typically the backlog is about five months for the truck industry’s manufacturers, analysts said.
North American freight-haulers ordered more than 300,000 Class 8 trucks in the first seven months of this year and are on track to order a record 450,000 of the heavy-duty vehicles for the full year, according to ACT Research. That would be the largest book since 2004, when orders reached 390,000, according to analysts.
In July , North American fleets ordered more than 52,000 trucks, an all-time monthly record.
Freight-hauling fleets are trying to keep up with swelling demand in a robust U.S. economy even as they say they face difficulty finding drivers. New trucks are one recruiting tool, and the new vehicles also get better fuel mileage—an attractive feature for fleets as other costs are rising.
The orders are coming at a rapid pace as more U.S. companies, from construction equipment makers to retailers, say rising transportation costs and tight truck capacity are crimping their ability to grow and slicing into profit margins.
How can you better handle demand and backlog without increasing operational costs, or shrinking unit margins and customer loyalty?
The answer could lie in replacing inefficient Dealer Management Systems (DMS), and becoming more agile. The personnel, hardware and facilities costs associated with traditional DMS solutions are becoming more difficult to bear as competitors move to lower-cost cloud solutions. On average, about 42% of dealers would consider switching their current DMS to ensure underlying technology would cost-effectively support future growth and location expansion requirements. Dealers say it is so time consuming and difficult to get information into and out of their system that employee productivity suffers by as much as 30%…too costly in a time of red hot demand and backlogs.
Velosio Dealer Management System
The world’s first cloud DMS, Velosio’s dealer management system is built on NetSuite’s state-of-the-art ERP platform and leverages the deep industry-specific functionality of Advectus, based on the experience of working with hundreds of clients around the world.
Sales tools built into our dealer management system provide you the ability to manage rising transportation costs and tight truck capacity, and:
- Adapt to best practice processes
- Quickly shift sales strategies, becoming more agile
- Flexible payment calculations
- Prospect scoring/risk management
- Vehicle management tools
- Sales reports and KPIs
Check out our video and learn more about the Velosio dealer management system, powered by NetSuite + Advectus.
Hersch Patel, CPA.CITP
Managing Director, Consulting Services,Velosio
Hersch Patel, CPA.CITP, is the Managing Director of Consulting Services for Velosio. With more than 19 years of experience in the areas of management consulting, managing and leading business applications implementations, Hersch has an indepth understanding of business strategy, business process, business development, and system control design. He specializes in leading teams which plan and execute business technology projects for the purpose of reducing costs, increasing revenue and improving efficiency. Many projects Hersch and his team lead enable individual clients to realize millions of dollars in cost savings annually. Hersch has also traveled across the U.S. and internationally, leading implementations of business applications and management consulting projects for numerous clients from small businesses to Fortune 500 companies.
Hersch has a Bachelor’s Science degree in Business Administration with a specialization in accountancy from Miami University, and is based in Cincinnati, Ohio.