By: Jeremy Tancredi and Chris Maughan
A tight labor market, high turnover, and increasing freight demands have converged to produce a shortage of delivery drivers—a deficit that is translating to higher costs at the same time as innovative competitors, large and small, are disrupting transportation practices.
Additionally, private equity (PE) firms have begun investing in the transportation and logistics (T&L) industry at increasing rates, with T&L acquisitions jumping 44 percent between 2015 and 2017. The result is often that newly acquired companies are enabled to accelerate growth through innovation and investment—which can leave other companies struggling to keep pace. And as organizations look for ways to reduce delivery costs and boost driver productivity in this disruptive environment, they risk alienating the drivers on which they depend.
For transportation and delivery function leadership, frontline management, and engineers, increasing driver productivity does not have to conflict with efforts to attract and retain delivery drivers. In fact, a successful performance management program, bolstered by technology, data-driven modeling, and work measurement, effectively addresses both objectives when designed and executed correctly. We have seen such efforts boost productivity by as much as 30 percent.
In this paper, you will learn:
- Why you need to take action to reverse the impact of driver shortages on cost, productivity, and consumer experience
- How to create a performance management approach that influences driver productivity, driver engagement, and management effectiveness
- What constitutes credible performance expectations and what you will need to develop them
- How to set up your program for success