December 2022 - Measuredability

Building Cost-effective Truck Driver Operations in Cape Town

As one of the most important economic centres in South Africa, Cape Town is a crucial area for freight and logistics companies to focus on when looking to improve their cost-effective truck driver operations.

What strategies can companies in this industry implement to maximise their truck drivers’ abilities and develop more efficient and cost-effective road freight and logistics operations in Cape Town?

Read on to learn more about the essential costs and challenges associated with truck driver operations in Cape Town, as well as strategies to overcome them.

Costs Associated With Truck Driver Operations

The primary cost associated with truck driver operations is the truck drivers themselves. The truck drivers’ salary, insurance fees and other benefits must be considered when calculating the overall cost of truck driver operations. The process of hiring, screening, training and onboarding drivers can also be expensive and time-consuming, adding additional expenses to the overall budget if done in-house.

Another cost associated with truck driver operations is fuel expenses. Fuel prices in South Africa are subject to domestic and global market fluctuations, so freight and logistics companies must factor this into their truck driver operations budget. The country is currently facing high fuel costs, contributing to the overall cost of truck driver operations and negatively impacting trucking businesses’ profit margins.

Finally, truck maintenance and repair costs must also be considered when calculating the cost of truck driver operations in Cape Town. These costs can add up quickly, so trucking companies need to plan, budget accordingly, and keep a close eye on truck maintenance schedules to ensure their truck drivers can operate safely and efficiently in the region.

The costs of Cape Town port delays

A new report released by the Department of Economic Development and Tourism in the Western Cape revealed that the busy Port of Cape Town moved around R210 billion worth of imports and exports in 2021. According to the findings, the port handles 18–20% of South African port container volumes. In 2021, 52% of all Western Cape exports were exported via the Port of Cape Town, adding up to a figure of R86.482 billion.

The study’s main goal was to map the container truck logistics chain to identify critical points of congestion and their corresponding fundamental causes, as well as to calculate the costs of congestion and identify opportunities for improvement.

The cost of truck delays for all truck owners at the container terminals is, on average, R330 000 per day, with the leading causes of truck delays including:

Wind/weather gate closure (30%)
Gate closure and shift changes (9%)
Stack congestion and IT system failure (4%)
Unexplained delays, which included terminal capacity limitations (57%).

While truck drivers cannot control environmental or technological factors, they control their driving behaviour. The truck driver’s ability to drive safely and efficiently minimises truck delays at the port and other trucking destinations.

Strategies to Maximise Truck Driver Performance

Trucking companies can implement various strategies to maximise their truck drivers, reduce costs, and develop more cost-effective road freight and logistics operations in Cape Town.

Employ experienced truck drivers for hire

By opting to outsource truck driver staffing instead of recruiting and training them in-house, companies can save time and money while benefitting from the truck drivers’ experience and overall expertise. Hiring experienced truck drivers can also help companies minimise training costs and offer a more reliable service to their customers while remaining flexible to adjust their staffing needs when needed.

For example, temporary staffing solutions are a cost-effective way to meet seasonal spikes in demand without committing to a long-term contract. Furthermore, by contracting out their truck drivers, companies can more easily adjust the size of their workforce according to the changing demands of their industry.

Additionally, truck drivers for hire can also help reduce the administrative costs associated with the recruitment process, such as background and reference checks. Payroll is another area in which companies can save money by outsourcing truck drivers for hire, as this eliminates the need to provide benefits such as retirement plans.

Leverage technology

By leveraging technology, freight and logistics companies can monitor truck driver performance in real-time, create more efficient routes, automate the billing process, and manage truck maintenance schedules. This can help overcome the challenges discussed above regarding truck delays at ports, primarily caused by a lack of data and end-to-end supply chain oversight.

For example, real-time tracking technologies allow companies to monitor shipments continuously, anticipate risks and delays, and prepare for potential complications. Trucking and logistics tools can reduce operational costs, optimise operations, and ensure a better customer experience when used correctly and in alignment with all stakeholders in the supply chain.

Train your truck driver

Regular training sessions for truck drivers on safe driving techniques and fuel efficiency strategies can help reduce fuel expenses as well as ensure compliance with safety regulations. When implementing a training program, it is crucial to focus on the fundamentals, such as defensive driving and vehicle inspections.

Specific trucks require the relevant licensing to operate, and it is important to ensure that all drivers have the correct licenses for the vehicles they drive. For example, Hazchem drivers must hold a valid dangerous goods driver’s license and be aware of the laws pertaining to transporting hazardous materials. Companies cannot understate the value of licensing, experience and risk mitigation in an industry where mistakes can have serious financial consequences.

Regular training sessions can also help reduce the number of accidents caused by inexperienced or poorly trained drivers while increasing overall road safety. These sessions should cover essential topics such as safe loading and unloading, vehicle maintenance, road rules and regulations, customer service, fatigue management, and other safety-related matters.

Optimise truck maintenance

Taking a preventative approach to truck maintenance helps ensure that truck drivers are operating vehicles in optimal condition, minimising the potential for accidents and breakdowns. For example, performing regular oil changes, monitoring tire pressure and tread levels, checking engine fluids, and replacing worn-out parts can help keep trucks running correctly for longer.

Additionally, having a system in place to track and log maintenance records is essential for effective truck maintenance. This helps with scheduling regular maintenance checks and adhering to the service intervals recommended by the truck manufacturer, further minimising the chances of breakdowns, delays, and costly repairs.

Conclusion

By taking the necessary steps to hire experienced truck drivers, leverage technology, educate truck drivers and optimise truck maintenance schedules, trucking companies in Cape Town can reduce their overall operating costs while also developing more cost-effective road freight and logistics operations. Ultimately, this will result in improved efficiency and higher profits for trucking businesses in the region.

MASA is here to assist with the first step of sourcing and hiring drivers for hire, and we can do it in the most cost-effective way for your business. This is because MASA develops a tailored strategy to handle your company’s unique driving needs, supplying temporary or permanent drivers with the licensing and qualifications for the job.

We have regional offices in Cape Town, allowing us to leverage our local networks to source the best possible candidates. Contact MASA to get started and find out how MASA can help you save money while helping your trucking business succeed using the best truck drivers for hire in Cape Town.

Temporary Employment Services for Construction Companies

Temporary employment services are becoming increasingly popular in the construction industry as businesses look for ways to navigate the ever-changing labour market. This provides a flexible solution that allows companies to hire skilled labour on a temporary or project-by-project basis.

The key is to find a reputable and reliable temporary employment service that can provide the right workers for each project.

This blog post will discuss the benefits, challenges and solutions of using temporary employment services in the construction industry and how to make the best of the opportunity.

Temporary employment services for construction companies

The construction industry in South Africa has been in a steady decline since 2017, and the global pandemic of 2020 exacerbated the situation due to hard lockdowns that left many projects incomplete. This caused a significant drop in construction work, and many businesses had to change how they did things or went out of business.

The industry also faces several other challenges, such as the rising cost of materials and labour, increased competition from foreign firms, and a need for more skilled workers. Despite these issues, there are still many opportunities for companies in the industry to grow their businesses.

Hiring skilled workers temporarily is one-way businesses can remain competitive and grow. With careful planning and an eye for innovation, companies in South Africa’s construction industry have plenty of potential for success.

Benefits of Temporary Employment Services for Construction Companies

There are multiple advantages that companies in South Africa’s construction industry can gain by using temporary employment services.

Cost savings

The construction industry is highly competitive, making cost savings a priority. Utilising temporary employees helps reduce overhead costs because employers only pay employees when needed.

Companies that use temporary workers can also save money on training and onboarding because they can spend less time or money looking for and preparing workers. Also, because temporary workers usually get different benefits than regular employees, like health insurance, pensions, and other perks, they can help companies save money.

Flexibility

Temporary employment services also allow companies to quickly increase or decrease staff based on a project’s needs. This lets businesses respond more quickly to demand changes without hiring more full-time workers. This flexibility also extends to the type of worker they need, as companies can source specialised skills or staff with specific experience or certifications on demand.

Temporary employment agencies can also offer bulk staffing, which is beneficial for companies that need to hire multiple employees at once. This allows businesses to quickly scale up or down their workforce, depending on the needs of their project.

Increased productivity

Using temporary workers can also lead to more work because the workers can focus on one task without worrying about other things. This lets them focus all their attention and energy on that task, making them often more productive than permanent employees who may be working on more than one thing at once.

Temporary workers also often come with specialised skills, knowledge and experience from working for high-level companies in the industry, which can prove beneficial to the average organisation’s productivity.

Construction Companies’Companies’ Challenges with Temporary Employment Services

Although there are many advantages to using temporary employment services, there are also some challenges that companies must be aware of to ensure success.

Quality control

One of the biggest challenges with using temporary employees is quality control. Because these employees are often not familiar with your company’s processes, there is a risk that they will need to complete work correctly and efficiently.

Companies drive temporary workers to work well by setting up structured onboarding processes, proper training and mentoring, and feedback loops. This also ensures that the temporary workers know what is expected of them and can meet the organisation’s quality standards.

Training and compliance can be challenging with temporary workers because ensuring all safety rules are followed takes time and resources that may not be available with short-term staff. But it is essential to ensure that all employees, even those only there temporarily, are up to date on safety rules and know how the company works.

Performance management

One of the other challenges construction companies face when working with temporary employment services is a need for more control over worker performance and management. Temporary workers have a different loyalty to the company than permanent employees, so it can be challenging to ensure they do their job correctly and comply with safety regulations.

To combat this issue, companies should have processes in place to monitor and evaluate the performance of their temporary workers. These processes can include keeping track of how many projects they finish, ensuring safety rules are followed and reviewing the project after it’s done to ensure expectations are met.

Maximising the benefits of temporary employment services

Here are a few more tips for South African construction companies to make sure they are getting the most out of their temporary employees:

Develop an effective recruitment strategy

To get people with the necessary skills and qualifications, employers should make sure they target the right candidates for their projects. A reputable temporary employment agency can help companies find the right people while ensuring candidates have the qualifications, experience, and abilities to handle the job.

Ensure thorough onboarding and training

Provide temporary workers with detailed instructions and give them adequate time to learn the company’s processes and safety rules. This will help ensure they are prepared to do their best work and will also help avoid any costly mistakes or delays.

Set clear expectations

Be sure to communicate exactly what is expected of each temporary worker regarding duties, tasks and deadlines. Ensure that the instructions are easy to understand and that the temporary workers can ask questions if they need clarity about their roles or tasks.

Be transparent about the terms of employment

It is vital to explain the terms of employment in clear and straightforward language, so there are no surprises for either party. Be upfront about the expected duration of the assignment, how much the worker will be paid and any other rules or regulations that may apply.

Ensure that employees have the correct tools and equipment

Providing temporary workers with the right tools and equipment can help ensure that they do their job correctly and efficiently. Ensure they have access to any essential safety gear, such as PPE and other necessary materials or resources.

Offer incentives for high performance

Rewarding temporary workers for their hard work and dedication can motivate them to perform even better. Employers can do this through bonuses, gifts, or other rewards that recognise the efforts of your temporary employees.

Using temporary employment services can empower South African construction companies to remain competitive and take advantage of the changing workforce. However, it is crucial to implement the right processes, procedures, and tools to ensure that your company and workers are getting the most out of these arrangements.

With careful planning, thorough onboarding and training programmes, clear expectations and transparency around employment terms, and high-performance incentives, companies can use temporary workers to their benefit and help them grow their businesses.

By developing transparent processes that help your employees understand the expectations before they start working with you, you can get the most out of your temporary workers and ensure that your projects are delivered on time, with the highest quality results. This will ultimately benefit both your company and the individual workers in the long run.

Build your workforce with MASA

Building the ideal workforce for your construction projects doesn’tdoesn’t have to be a struggle. At MASA, we understand the value of hiring and managing temporary workers correctly so your business can reach its potential.

We have over 40 years of experience providing expert temporary employment services for companies in various industries. Our team is dedicated to helping you find the right people for your projects. Get in touch with us today and discuss how we can help you build the perfect workforce for your business.

Building Cost-effective Truck Driver Operations in Cape Town