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Unique and interesting challenges |
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Like any business, a significant component involves the administration component. Just as operations keeps the trucks rolling, the administration function keeps the business rolling. The people behind the scenes play a critical role in keeping the business functional and solvent. Administrative responsibilities range from sales and marketing, payroll, accounting and human resource management to the more trucking specific roles in licensing and sales and fuel tax functions.
Business training at a community college or university is a great place to start for many senior administrative positions. However, given the unique needs of the trucking industry, on-the-job learning opportunities are plentiful in the trucking industry. For many entry-level positions, a high school diploma is sufficient. |
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Customer Service Representative Trucking is a service-based industry, which means that companies do not have tangible products to differentiate themselves in the market. Therefore, it's people who make the difference. In a road transportation company, the customer service representative (CSR) plays a critical role in achieving long-term success. The CSR's job is to interact with customers on a daily basis. The CSR is responsible for booking new shipments, following up on customer inquiries and dealing with customers to sort out freight claims which can consist of missing or damaged freight. It's the CSR's role to keep the customer satisfied so that shipping companies will keep coming back with their freight movement business. |
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Accountant/Bookkeeper/Controller Like any business, the accounting and bookkeeping function plays a critical role in a road transportation company. While the trucks are easily recognized with keeping the freight rolling, the accounting staff in the background is credited with keeping the business rolling. Accounts Receivable personnel ensure that working capital - the money - owed by customers is collected, and that invoices and receipts are accurate. Accounts payable personnel ensure that vendors are paid correctly and on time so that the company can continue to purchase much-needed operating supplies such as fuel, insurance, and equipment parts and accessories. Controllers or Accounting Managers liaise with banks and finance companies, and ensure that there is always an accurate financial picture available on which to base financial decisions. |
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Billing While this may be a simple task in many other industries, the billing function in a road transportation company offers its own set of unique challenges. In a trucking environment, all loads or part loads that are moved have to be separately rated. Criteria used to set the rate include: points of origin and destination, the weight of the shipment, the density of the shipment, shipment volumes, equipment (trailer) requirements, load protection requirements, delivery time demands as well as the volume of business generated by a particular customer. Billing personnel must ensure that the appropriate rate is levied for all shipments. Many companies offer evening and part-time billing clerk positions since this function does not have to be done during normal business hours. |
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Payroll Administrator Any company that employs people has to compensate them, and someone has to be responsible for ensuring that payroll functions are accurately executed. However, once again, the trucking industry offers its own set of unique challenges. While hourly and salary positions in trucking are handled no differently than other industries, the way that drivers are paid can vary significantly. For example, they can be paid by the hour, by the kilometer, for each pick-up and delivery, or a combination of these and other methods. Each company may elect to compensate drivers in they way or ways that makes the most sense for them. Payroll administrators are also responsible for ensuring that the appropriate tax deductions are made and remitted to government(s). In addition, responsibilities can also include administering other payroll functions such as workers' compensation and health insurance benefits packages. |
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Licensing/Permitting This function is unique to the trucking industry. There is a lot to
learn and understand about licensing and permitting commercial vehicles.
Since trucking companies and their vehicles seldom operate solely in
one province, companies must ensure that trucks and tractor-trailer
units must be appropriately licensed for each jurisdiction in which
it travels. In addition, each province or state may impose additional
requirements such as road or highway use taxes, which must be calculated
and remitted, based on vehicle mileage records. When licensing vehicles,
trucking companies need to know in advance where the vehicle will travel,
and what the maximum weight it is expected to carry, since license fees
are generally based on the vehicle's total weight. Since many trucking
companies contract with owner-operators for driving services and equipment,
the licensing and permitting function is also responsible for licensing
and de-licensing these vehicles on an ongoing basis. |
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Sales/Fuel Tax Administrator Like the Licensing and Permitting function, the job of a Sales/Fuel Tax Administrator is unique to the trucking industry. Trucking is not a static business. The industry's assets - its vehicles - are mobile, and as such, engage in business in each state or province that they travel in. As a result, trucking companies are responsible for meeting the various tax requirements imposed on them by each jurisdiction. This can include remitting sales tax based on the value of the vehicles and fuel tax based on how much fuel is consumed by vehicles in each state or province. In addition, some jurisdictions impose other business taxes which are based on the extent of a trucking company's operations in a particular state or province. The sales/fuel tax administrator is responsible for ensuring that each jurisdictions tax requirements are met, and that accurate records are maintained in the event of a compliance audit. |
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Sales Every business environment must include a strategy for generating new sales, as well as for maintaining the existing client base. In that regard, trucking is no different. However, unlike selling cars or dishwashers, the trucking industry does not sell a tangible product. There is nothing to touch or feel. In the trucking industry, the sales force can only sell a service. The service, of course, is the service of moving a shipping companies freight - be it cars, car parts, dishwashers, cans of food, or computer equipment - from one point to another. The sales staff must be fully conversant with the company's equipment, routes, rate structure, service options, and limitations. Sales personnel are required to generate new business, and to ensure that the clients' requirements are met. |
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Marketing Again, like the sales component, the marketing function offers unique challenges in the trucking industry. Marketing a service is very different from marketing a product. People in the marketing function of a trucking company are faced with the complex challenge of differentiating the services of his or her trucking company from that of the competitors. People in the marketing function have to be innovative, creative, and fully understand the range of services being offered by the company, as well as what additional services can be introduced to strengthen the company's market position. |
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Human Resources While the Human Resources or HR function is one of those functions that is utilized by virtually all industries, again, trucking offers it own set of unique challenges. The HR function includes virtually anything that involves human capital - from ensuring compliance with the appropriate labour, health & safety, and highway safety laws, to creating an appealing place to work. The HR function is responsible for the hiring function which includes recruiting, screening and interviewing, hiring and orientating new hires. It is also responsible for developing and enforcing personnel related policies and procedures. Some HR functions that are specific to the trucking industry include contracting with owner-operator drivers, developing and implementing performance-based incentive programs and training programs, as well as administering the company's drug and alcohol testing program for drivers (if it has one). While many of the responsibilities are associated with the driving function, a full one-quarter to one-third of positions in a trucking company are non-driving. |
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