The Business Plan for “Starting” a logistics operation consist of a narrative and several financial worksheets.  The “Narrative” template is the body of the business plan, and serves as the Global Positioning System (GPS) because this is where the journey begins.  It contains more than 150 questions on how to proceed, and why.  Work through the business plan in any order except for the “Executive Summary” which must be completed last.  Skip any questions not applicable to your type of business.

Upon completion of your first draft, you will have a collection of small essays on various topics of your various i.e., what is your niche, who to do business with, what are the funding requirements, and what agencies can support you in setting up your logistics operation.  Edit these essays into a smooth flowing narrative.  This becomes a test of your knowledge of the career you’ve chosen, and what resources are available to equip you to meet those compliance requirements.

The real value in creating a business plan is not to have a finished plan in hand, rather, the process of researching, and thinking about your business in a systematic way.  The Army has a slogan that clearly defines planning called the five P’s , “Prior Planning Prevents Piss Poor Performance”.   Planning and due diligence helps you to think through thoroughly all of your ideas critically to avoid costly, disastrous mistakes later.  Always contact transportation consultants, and attorneys to be certain that your decisions are made with the best information.

The business plan is generic for any business, but specific in transportation because we are experts, and can serve as your GPS.  However, modify the business plan to suit your particular business needs, teview yhe section titled “Refining the Plan” found at the end. It suggests emphasizing certain areas depending on your type of  business, freight movement, sales, auto transporting, retail or service.  It also provide valuable insight on fine-tuning your plan for an effective presentation for venture capitalist.  Pay attention to your writing style or seek assistance through professional proposal writers.  You will be judged by the quality and appearance of your presentation, as well as your ideas.  Generally, you want get a second chance to make a first impression.

It typically takes several weeks to complete a good business plan.  Most of that time is spent researching, and thinking of your ideas, assumptions, and the value of processes.  Take he time, make a call, and  do the “Business Plan” properly because that is “THE” guide to determine the success of your logistics operation.  Those that prepare business plans never regret the efforts.

There is a famous proverb that states” Consider the cost”.  His could be taken several ways, not just the dollar amount because funding is part of the plan.  You may consider a home-based business and the effect it may have on the family.

If you are a motor carrier or broker finding freight is difficult without the right resources. The truck is never where he load is, so time and ravel must be considered as well as vetting carriers qualification, confirming rates, and tracking shipments.

A well-thought out “Business Plan” determines the size of your investment, number of employees, and return of your investment.  As a home-based owner-operator your family can be trained to find freight,  and you can get two (2) authorities, One (1) as a motor carrier (trucker) and one (1) as a broker to employees other carrier as loads are secured from load boards.

Remember, that TFS has the best transportation professionals in the industry working as a cohesive unit to meet all of your transportation needs at a cost-effective and timely manner.

By: Bernadette A. Safrath

A contract is a legal document between two parties. In order to be enforceable, the contract must contain seven elements. While more specific requirements may differ by state, the basics of contract law require that these seven elements exist regardless of where the contract is formed. If even one is missing, a contract may be voided and the parties will be excused from any obligations.

Offer

An offer is the beginning of a contract. One party must propose an arrangement to the other, including definite terms. For example, if the proposal is an offer to purchase shirts, it must include quantity, price and a delivery date. When the offer is communicated to the other party, he has the right to accept, reject or amend the offer. If he rejects it, the offer dies. If he amends the offer, the original offer dies and his amendments become a new counteroffer that the other party can accept or reject.

Acceptance

An offer can be accepted in writing, in person or over the phone. The acceptance must simply be communicated to the offering party, with an obvious declaration that the accepting party intends to be bound by the buyer’s terms. Under the “Mailbox Rule” used in most states, an offer is deemed accepted when the accepting party places it in a mailbox or sends an email, even if the offering party never actually receives it.

Consideration

Consideration is something of value that the parties are contracting to exchange. Generally, one party exchanges money for property or services, but the parties can both exchange property or services, as long as a court would find that each party’s consideration has sufficient value.

Competence/Capacity

Competence, also called legal capacity, is a party’s ability to enter into a contract. The most common reason for incompetence is age. A party must be at least 18 years old to enter into a contract. If a minor signs a contract, she has the right to cancel it. Another reason for incapacity is mental illness. A person incapacitated by a disease or disability, who does not understand the terms of a contract he entered, has the right to rescind his acceptance of an offer, voiding the contract. Lastly, a person under the influence of drugs or alcohol may be considered incompetent if the other party knew or should have known that the person’s impairment affected his ability to understand and freely consent to the contract.

Mutual Consent

Generally, the law assumes that a competent party freely consents to a contract. However, if consent was obtained on the basis of frayed, due to duress or because of the exercise of undue influence, a party’s consent is considered involuntary and the contract is void.

Legality

A contract is only enforceable if the activity in the contract is legal. For example, a person cannot contract with someone to commit assault, murder or another criminal act. Additionally, contracts to split lottery winnings in states where gambling is illegal have been delayed unenforceable.

Writing

Not all contracts need to be in writing, but under the Statute of Frauds, certain contracts must be in writing in order to be enforceable. A written contract is required for all transactions involving real estate (i.e., lease or sale of a home), any promises to marry, any agreements to pay a third party’s debt and any transaction in which performance cannot be completed within one year of the contract signing.

https://www.sapling.com/11368503/7-required-elements-enforceable-contract

Info and Fleet Owner – Technology – Autonomous Vehicles

Neil Abt | Jul 17, 2019

https://www.fleetowner.com/autonomous-vehicles/peloton-outlines-plan-platoons-driverless-following-truck

Six fleets are using PlatoonPro in real-world conditions, Peloton said.

Peloton outlines plan for platoons with driverless following truck

As company works on Level 4 technology for the future, CEO Switkes says fleets reporting strong fuel efficiency gains with existing PlatoonPro system.

Peloton Technology has unveiled plans to develop Level 4 automated following technology that would allow one truck driver to safely operate two tractor-trailers in a platoon.

“We want to leverage the skill and experience of the lead driver,” Josh Switkes, founder and CEO of Peloton, told Fleet Owner in an interview. “That helps in a variety of ways make this type of automation dramatically simpler than a stand-alone driverless truck.”

Switkes spoke publicly of Peloton’s plans for first time on July 17 at the 2019 Automated Vehicle Symposium in Orlando, FL.

Currently, the company is rolling out its Level 1 PlatoonPro system, which has a driver in both the lead and follow trucks. The driver in the second truck steers, but the system controls the powertrain and brakes to manage the following distance.

PlatoonPro is being used by six fleet customers in real-world conditions, with numerous other customer trials underway. Switkes said the system has a perfect safety record, and customers are achieving fuel savings averaging more than 7%. In some cases, miles per day have exceeded 700 per truck, resulting in projected fuel savings of up to $7,000-10,000 per truck, per year.

Switkes declined to provide specific details on any of the fleets using PlatoonPro, but hinted much of the activity has taken place in Texas. He emphasized one takeaway thus far is how infrequently other vehicles cut into an established platoon, which critics have pointed to as a safety risk and a reason the suggested fuel economy benefits would not be as high in real-world conditions.

Addressing another frequently cited concern, Switkes noted it is rare for significant “hard braking” events to occur. However, the company has spent “a huge amount of time” understanding and measuring braking capabilities to ensure the system will work properly every time, regardless of the circumstances.

As Peloton works today to further deploy PlatoonPro, Switkes said there is no exact timetable for its Level 4 system, stressing that safety testing and validation takes time. But he was confident this technology would prove attractive to an industry struggling with finding enough truckers.

“We see the drivers as the world’s best sensors, and we are leveraging this to enable today’s drivers to be more productive through automated following platoons,” said Switkes.

Peloton’s advanced platooning system will use vehicle-to-vehicle (V2V) technology, which allows the human-driven truck to guide the steering, acceleration and braking of the follow truck. Switkes said he believes the ability to double the productivity of the driver by controlling two vehicles through the platoon will prove attractive to fleets.

He also said the highest skilled drivers will likely operate these future platoons, and could receive higher compensation for their efforts.

Peloton said this will result in “improved work for drivers through better routes, schedules, and compensation, as well as better quality of life through expanding hub-to-hub and relay-style operations that allow drivers to be home with their families every night.”

Separately, a report released on July 17 from the Competitive Enterprise Institute (CEI) found that only 20 U.S. states have thus far authorized commercial automated vehicle platooning. The first start to do so was Utah back in 2015.

CEI said “with the coming advent of automated vehicles, numerous sections of state motor vehicle codes likely will need revision if we are to take advantage of the full range of benefits offered by vehicle automation technology.”

For platooning, the legislative hurdle generally surrounds minimum following distances on the highway. The group made two recommendations for altering these regulations while maintaining safety.

First is a “strong amendment,” which would preclude agencies from promulgating any regulations restricting automated vehicle platoons. Next is a “weak amendment,” which would grant motor vehicle authorities discretion in how to promulgate platooning rules.

CEI’s report, “Authorizing Automated Vehicle Platooning: A Guide for State Legislators” is a nationwide inventory of state “following too closely” rules that offers specific, state-by-state fixes to amend statutes in a way that exempts speed-coordinated vehicle platooning from those laws.

“The economic, safety, and environmental benefits of platooning should prompt other states to update their laws,” said Marc Scribner, CEI senior fellow and author of the report.

The annualized turnover rate at large truckload fleets rose 5 percentage points in the year’s first quarter from the quarter prior, according to the American Trucking Associations, while the turnover rate at smaller truckload fleets fell four percentage points –   the first dip for small fleets in three quarters. The parity between the two rates “demonstrated a muddled picture” of the driver market, said ATA.

“While the market for drivers in certain segments continues to be tight, we’re seeing the impacts of a softer freight environment,” said Bob Costello, chief economist at ATA. Despite weaker freight growth, it is clear that there is still strong demand for quality driver’s industry wide, which will continue to put carriers under pressure to recruit and keep good ones.”

Large carriers are defined as those with more than $30 million in annual revenue, while smaller truckloads carriers are those with less than $30 million in revenue.

The turnover rate at large truckload fleets in the first quarter was 83% – 6% points lower than 2018’s average and 11% lower than the same quarter a year ago. At smaller truckload carriers, the rate fell to 73% – the same rate as 2018’s first quarter.

A couple of days ago we were shocked to receive notice of a pending lawsuit against TFS for sending out an unsolicited text message to a transport company promoting some of our services on www.TFSMall.com.  The number we had texted information too was listed as a business number with the FMCSA and so was available in the public domain for use by other businesses wanting to contact them.  When you sign up with the FMCSA, you sign a document called an OP1 that says that you accept that your phone number will be distributed to other organizations for them to contact you via either calls, email, or text.

We have and will always be proud of our level of transparency that we have with both our clients, potential clients, vendors and business partners when it comes to information we utilize for in-house marketing and also what we post on our websites.  We have all the relevant disclaimers on our websites and email communications; we want you all to learn and benefit from all of our experiences.

1. Never use your personal cellphone number for business.  You will be amazed at how many different locations your number will start appearing online and how many calls and texts you will receive.  If you are on a tight budget as a new business, there are a variety of cost effective options available to you.  Google Voice for example, will set you up with a free telephone number that will forward to your cell number.  You can even use their app to dial out from that free number, via your cellphone service.  There is no cost associated with a google voice phone number.  If you need help setting this up our team would be happy to help.
2. If you are going to be emailing or texting potential business partners, always include in your signature an option to “unsubscribe”.  All email software has an option for setting up a signature, so you can include an unsubscribe option there so that you do not have to keep on typing it in.   Again our team can help you with this if needed.
3. When sending out emails or texts to a large number of recipients use software that is designed to do the job.   www.constantcontact.com and www.mailchimp.com are examples of email marketing software.  www.skipio.com and www.eztexting.com are examples of text marketing software.  FYI there may be costs associated with using these applications so make sure you do  your due diligence.  If you need help please let us know.

When it comes to the crunch, as a business owner, there are always things that will come along that you will have to deal with  that you were not expecting.  Take them in your stride, take a deep breath and be sure to always work with credible, well organized companies, and build a team that you can trust and rely on!

This is a topic that the team at TFS is reviewing and researching. We hope to have some recorded interviews and/or podcasts soon. If you are a women and work in the industry, please contact us…we want to hear from you!

https://www.abc15.com/news/region-phoenix-metro/central-phoenix/more-women-getting-behind-the-wheel-for-trucking-jobs

https://www.thetrucker.com/fmcsa-reminds-truckers-drug-alcohol-clearinghouse-coming-soon/

The clearinghouse will be a professional truck driver database that will serve as a centralized record of all failed drug or alcohol tests, whether from pre-employment screenings, post-crash tests or random. (©2019 FOTOSEARCH)

Remember two years ago, when it seemed like the entire trucking industry was counting down the days to the ELD deadline?

Well, the Federal Motor Carrier Safety Administration (FMCSA) wants drivers to be aware of another countdown happening right now, although with much less hoopla than the Great ELD Panic of ’17.

At the recent Mid-America Trucking Show, Joe DeLorenzo, FMCSA director of enforcement and compliance, gave a presentation to raise awareness about the soon-to-be launched federal CDL Drug and Alcohol Clearinghouse.

Mandated as part of the Moving Ahead for Progress in the 21st Century Act, or MAP-21, in 2012, the same piece of legislation that bore the ELD mandate, the drug and alcohol clearinghouse is scheduled to launch January 6, 2020.

The clearinghouse will be a professional truck driver database that will serve as a centralized record of all failed drug or alcohol tests, whether from pre-employment screenings, post-crash tests or random. All refusals to take a drug or alcohol test will also be recorded.

“I came here with a bit of a mission on the drug and alcohol clearinghouse rule,” DeLorenzo said to the MATS audience. It has come to the agency’s attention the clearinghouse has been flying under the radar, a bit, and not enough drivers seem to know about it or they haven’t gotten a full explanation of what the clearinghouse will contain and what it will be used for.

DeLorenzo said drivers have said to him, “Well, I don’t do drugs, so I don’t have to worry about this.”

“Actually, that’s not the case,” DeLorenzo said. “Everybody needs to know about this and get going on it.”

Starting in January, carriers will be required to query the database as part of the new-driver hiring process to ensure that the candidate does not have any failed tests or refusals in the previous three years. Carriers can only gain access to a driver’s record and make the mandatory query with the consent of the driver, and the only way a driver can give that consent is to be registered in the clearinghouse.

So, technically, drivers are not going to be required to register in the clearinghouse, DeLorenzo said. However, if you ever want to get hired anywhere again you’ll have to be registered in the clearinghouse.

“If you’re just kind of staying where you’re at, no intention of leaving, or if you are working for yourself, or if you are nearing retirement, you may decide not to register,” he said. “But in an industry with 100%-plus turnover, I know people are always looking for a new job, a different job, a better job. Any driver who’s going to apply for a new job after this rule goes into effect is going to have to have an account and is going to have to be able to go in.”

DeLorenzo explained why the clearinghouse has been set up this way. Today, when someone applies for a job, they get tested as part of the process. They fail the test and the carrier doesn’t hire them. Three months later, they stay clean just long enough, the apply somewhere else and that company hires them, not knowing about the prior failure.

Starting January 6, carriers will be required to upload notices into the clearinghouse of all failed drug tests by drivers and driving applicants, as well as all refusals to test, as they occur.

The database is designed to go back three years. At first, employers will have to conduct both electronic queries within the clearinghouse and manual inquiries with previous employers to cover the preceding three years to meet the mandated hiring requirement. As of January 6, 2023, they will only need to check the clearinghouse.

Drivers’ records will only contain positive tests and refusals. When a prospective employer makes a query, they will be told if the record is clean. If there are entries, they will be able to get more details.

If a driver has a failed test, the database will also record whether that driver has completed the return-to-duty process.

Drivers will also be able to review their own records, DeLorenzo said, which is another incentive to register. If a driver finds an entry they wish to dispute, they can file a DataQ request to have it corrected.

The clearinghouse website is already up and running. Drivers can go to Clearinghouse.fmcsa.dot.gov to read about the clearinghouse and to register their email addresses for any updates. Actual registration is scheduled to begin in October.

DeLorenzo said he is hoping to raise more awareness about the clearinghouse now so they start registering in October instead of finding out the hard way come February when they try to apply for a job.

“What I’m trying to avoid, actually, is human nature, which is to wait until the very last minute.”