by Ashley Wilks
Trends Include Financing and Factoring for the Trucking Industry
When trends are mentioned in the news, it is generally in the context of fashion, food or technology. While fashion and food may not be relevant in the trucking industry, technology is, and the trends are pointing toward innovation in both software and strategies. The trucking industry is embracing everything from mobile apps and telematics, to virtual account management, and innovative financing and factoring solutions.
The responsibilities of fleet managers across the nation have evolved to understand more about technology than ever before. There is more than one answer to every problem and the need to be nimble is critical in this age of tech. It is also important to understand trends and for every aspect of business to be answerable to the trends. Fleet factoring has addressed the trends as follows:
The top 5 trends for Fleet Managers and how factoring applies:
- Flexibility is key. Programs are getting more robust, and people are looking for more choices. Choices matter, and it will be the future of the fleet industry to morph programs to meet this desire.
From ride sharing, shared leases, to autonomous vehicles, it’s clear that flexibility is necessary in every aspect of business including finance, and a large number of fleet companies are turning to fleet factoring for the flexibility it offers.
- The working population is changing. The younger generation is now the largest population of the workforce, but this is not representative of the fleet industry.
The millennial generation is requiring more options for work and for play. They want an easy experience with every engagement they take on. While this generation may not be as interested in the trucking industry for the freedom it offers to drivers, they are interested in innovative approaches to business and the advantages that fleet factoring can offer business. They will also push for options within this type of financing, which is what companies like FleetOne are delivering.
- Technology is changing, FAST! Data is available everywhere we turn, evidenced by the fact that three out of four vehicles that came off the production line last year would be classified as “connected cars.” While people still have some privacy concerns about 24/7 monitoring, technology is making everything more transparent. It’s important that fleets choose the right technology. Telematics solutions make great sense for those that have service vehicles such as trucks, vans, or logoed vehicles. They need to know where the car is at all times, and it should be expected when providing that type of vehicle. Other solutions make more sense for those that have sales fleets. Data is everywhere, but making it digestible and actionable is key. Regardless of your fleet situation, data needs to enhance the business.
Data analytics is driving change for many companies and the industry as a whole. Data will also inform how companies choose partners – and that goes for freight factoring companies as well. Robust analytics can provide the details that will help to better inform which factoring solution is best for your fleet.
- It’s about options. Fleet managers are often tasked with managing more than just the fleet. They are managing other employee programs while maintaining the integrity of safety programs, driver training, insurance requirements, and even vehicle requirements. With so much on the plate of a fleet manager, the future of the industry will rely on analytics and predictive patterns.
Options are key in fleet factoring as well. In fact, it could be the number one consideration when choosing the right solution. FleetOne offers a variety of fleet solutions including recourse and non-recourse factoring. They also provide electronic tools like Fleet Docs that can help in managing those solutions.
WEB ACCESS FOR DESKTOP USERS
- Electronically submit invoices with supporting documents for quick funding
- Automatically compile supporting documents by load and stores images
- Create invoices or upload invoices and supporting documents from your billing software.
MOBILE APP FOR DRIVERS
- Easy-to-use scanning app for Android or iPhone
- Snap a picture of a BOL with built-in image quality enhancements that shippers/brokers will accept
- Communication to your drivers that the image was accepted
- Options are viewed as less of a threat to fleet in the eyes of many leading fleet managers. Not long ago, many thought that every non-fleet program was not the best fit for their organization. Reimbursements, allowance programs, and cents-per-mile programs were often considered less-than-ideal programs in the fleet world. However, many fleet managers have learned that there is a time and place for every option out there. For example, fleet vehicles are most practical in certain situations, while cents-per-mile programs are more practical in others. Fleet managers are now managing and maintaining mobility programs to protect companies and drivers alike.
While the trucking industry trends continue to skew toward technology and innovation, fleet factoring companies are taking it upon themselves to address the trends in the most relevant ways possible. The fact is, efficiencies and speed are two of the top priorities in trucking, which has also influenced the need for factoring companies to focus on how they can match the marketplace evolution and demand. They are understanding that efficiencies often start with innovative financing and customer service. FleetOne is helping customers decide which options are best in meeting long term goals and the results are paying off quite literally.