When financial times are troubled, it becomes increasingly important to manage your business effectively and efficiently. This is especially true in capital-intense enterprises such as the truckload segment of the transportation industry. As the trucking industry has struggled through the process and aftermath of deregulation, it has become increasingly apparent that many companies are not managing their assets properly. The lack of effective marketing efforts and appropriate management techniques has allowed the trucking industry to become a buyer's market. Additionally, potential legislation currently being evaluated brings the increased threat and pressure of possible unionization. Owners and managers who desire to maintain or increase their profitability, or just survive this difficult business climate, must now monitor their efforts and correct their course when circumstances dictate. Owners must create a blueprint for success, not just struggle to survive. Now is the time to make an impact-those companies who embrace this opportunity now will come out on top when the economy recovers.

The challenges faced today did not occur overnight. With the onset of deregulation in 1980 came many obstacles to success. Some of these were transitional changes, natural effects of a changing regulatory system and an evolving economic climate. Banks began to tighten their lending requirements while insurance companies enacted more stringent risk assessment policies. New safe vehicle regulations were initiated by the Department of Transportation and commercial driver's licenses (CDLs) were mandated for the industry. And while these changes significantly altered the transportation environment, many trucking companies failed to alter their management strategies accordingly.

Even some 20 years later, most trucking companies have still not recognized the real impact of deregulation. In order to gain market share, they need to better understand inventory control and learn how to operate in a ‘just in time' climate-something that third-party logistics companies (3PLs) realized and marketed early on. Trucking companies who want to compete in the current marketplace also need to learn from their 3PL brethren and gain an understanding of the dynamics of logistics, rail, steam, and intermodal models of integrated transportation. While many trucking companies have been stopped in their tracks, brokers have taken advantage of the new system. Their proactive approach has allowed them to transition into logistics providers. Companies such as Ryder and Exel have excelled by promising customers better managed results by assuming responsibility for management of both their inventory and their transportation costs.

A more recent transitional change affecting the industry has been the explosion of technology. Many trucking companies have been unwilling to embrace the impact of technology on the industry. Others have remained unaware that their lack of understanding of ‘new ways' of managing resources will result in being left behind. Managing with information is a recent concept in the industry and many are still learning how to utilize this new tool effectively. To be successful in today's environment, managers must examine the entire transportation and warehousing process and learn to use technology to manage that process. Employing the use of new technology tools will allow a company to identify trends and strengths and then enhance or alter services offered to maximize profitability. Proactive leadership in this area involves intensive analysis. Rather than fearing this new technology, ownership and top management must embrace it. Owners must lead their managers and change the company culture to one which realizes the necessity and understands the rewards of managing with information. Changing the operating culture of a company must start at the top.

In addition to the transitional changes, there are a number of dynamic changes, beyond our control, that must be dealt with to survive in today's buyer's market. The economy, taxes, governmental regulations, the specter of increased unionization efforts, and a shortage of drivers are all obstacles to success. While these obstacles cannot be changed, companies must develop methods for coping with them or fail. As the industry continues to constrict, it will be the carriers who have been proactive in dealing with dynamic changes, understood the impact of deregulation, embraced technology and managed with information who will survive.