Risk management helps cut costs for truckers

Never before has risk management been as important to the trucking industry as in the current economic times, says Sean Jackson, managing director of Trucktek. “Companies often don’t see the value of assessing their risk and it is definitely a grudge purchase as it does not necessarily affect the immediate bottom-line.” But, says, Jackson, more often than not, investing in a proper risk management system means exactly that – more money. “It is about taking a broader approach and looking at what the risks are and how one can overcome them effectively. When you look at your business holistically and implement the necessary tools designed especially around your individual needs, the impact on the company bottom-line is huge.” Specialising in risk management of fleets regardless of their size, Jackson says it is imperative that a fleet manager find a system that works for the individual. “One of the fleet management systems that can be used via a cellphone or a laptop not only alerts you to a drop in fuel but allows you to cut the fuel line because of a flat tyre that the driver of a big rig may not even be aware of.” Jackson says knowing where risk is costing you money is what makes the difference. “Whether it be fuel theft or just that your trucks are not functioning at an optimum level due to bad shock absorbers – addressing the risk is a sure way of cutting costs as you can actually take the necessary precautions.” According to Jackson, often risks are not taken into account resulting in huge financial losses that could have been prevented by better management. “Putting proper systems and units in place to ensure that your fleet is being managed at its optimum level and that risks are being curtailed not only minimises costs, but also ensures a more efficient service.”