IT That Works For You

Business News - Publish Date: January-08-05

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How Investments in Technology Can Cut Costs in the Moving Industry

By Piet Gauchat
Special to Direction
Copyright American Moving & Storage Association

For most moving companies, technology is viewed as a peripheral expense; a luxury item distinct from the everyday challenge of getting crews dispatched and keeping the warehouse clean. There is so much involved in running a moving company, that owners often find themselves putting out daily fires rather than addressing longer-term strategic issues.

Computers will never replace the mover; however high-speed internet access, wireless networks and handheld systems are profoundly impacting the way that we operate. Technology has even extended into the cabs of our trucks; empowering those that have the biggest influence upon how our industry is perceived; namely, the drivers.

For the astute business owner, these developments provide a unique opportunity to gain competitive advantage and enhance profitability. For those unable to adapt, the influx of new technology may ultimately spell disaster.

Let’s take a closer look at some of the basic questions that owners should be asking themselves in relation to their IT strategy and will hopefully provide a framework for future discussion.

Investments in technology offer a prime opportunity to cut costs by reducing excess paperwork and eliminating redundant data entry. These solutions allow for instant access to critical information and enable you to focus resources in the areas where they are most needed—customer service and business development.

An integrated solution can provide reporting capabilities that will inform and drive business decisions. The objective is to do more with less. Reliance on systems and procedures orchestrated by a comprehensive IT solution will afford your employees the opportunity to be more productive.

For example, a salesperson outfitted with a mobile computer will maintain formation on the company a competitive advantage by:
    • Completing more surveys in a given day.
    • Generating and printing estimates on-site.
    • Being able to ask for the sale at the point of contact.

In effect, a properly equipped salesperson will be more productive and enjoy greater earning potential.

Strategy for Survival

The cold hard truth is that companies operating exclusively with pen and paper will simply not survive because they will be using more people to accomplish less work and shrinking margins in our industry will not sustain them.

The two biggest excuses for not adopting new technologies are time and money. The irony, of course, is that technology is designed to save time and help you make money.

There currently exist numerous solutions for the moving industry, but rather than taking the appropriate steps to enhance operational efficiency for the future, we tend to blame trade groups, competitors, rogue movers and numerous scapegoats for reduced profits.

For many companies there is another hidden agenda behind the Time/Money Excuse—fear of technology and fear of change. What is required is a fundamental shift in paradigm. Technology symbolizes a threat to those afraid of it and an opportunity for those willing to embrace it.

“My people can’t handle that” is also a common refrain heard among both small and large companies—but the moving industry largely draws on the same labor pool as UPS and FedEx. If these corporate giants can implement technology on an international level with hundreds of thousands of employees, surely it is possible to do this in your organization.

If you find that after thoroughly training your staff, they are still unable to handle the transition, then, quite frankly, you need to get new people.

A hundred years ago there were owners who decided not to replace their reliable horse-drawn carriages with a new truck. Needless to say, these companies are no longer with us—and a direct parallel can be drawn to today’s owners who choose “pen-and-paper” over an automated infrastructure.

Questions such as where is your company right now and where do you want to be five years from now represent some of the basic building blocks from which a cohesive IT strategy can be designed.

As an owner, it is a healthy exercise to map out the information flow through your office; from the point of initial contact through to the final accounting entry. For most moving companies, this information flow is rife with inefficiency. Redundant data entry, missing files, excessive claims and lost time sheets represent just the tip of the iceberg.

There are numerous software companies that service the Moving and Storage Industry. A partial list includes: Adeena, Compumove, Compusource, Consensus Software, E-Mover, IGC, Smartmove, Softwareformoving, Techmate and Winfield Micro. Which vendor is right for you will hinge upon the way that you choose to run your business.

Figuring Costs vs. Benefits

There is no definitive solution that is universally applicable owing to operational variables and unfortunately, there is no substitute for doing your homework. Ultimately, technology is just a tool, not an answer, and how effective it is will depend on the choices that you make and your ability to effectively integrate these solutions into your organization.

As you proceed with your research, don’t be swayed by the bells and whistles. The truest test is a simple cost-benefit analysis. Is this investment going to lower costs and/or increase revenue? How long will it take for this investment to pay for itself?

The fractured nature of the moving business has left a number of smaller vendors to service a multi-billion dollar industry. It is imperative that your provider can offer adequate technical support and that they are selling not just a product, but a service and a commitment to meeting both your current and future needs.

The introduction of the 400-N Tariff and the economic impact of September 11 are just two illustrations of how this industry is constantly evolving. Make sure that the software you are investigating is dynamic in nature and can meet these challenges. To minimize your investment and in light of the short lifespan of new technology, it is imperative that you avoid investing in a solution that is already antiquated.

Until someone invents a teleportation device, we will still require movers, trucks and warehouses. The immediate future however holds the possibility of a single point of data entry and a consistent flow of information.

Handheld technology coupled with a comprehensive back-end software package should enable salespeople to not only estimate and wirelessly print while at residence, but also to check availability and to schedule jobs while on the road. Drivers will complete inventories on mobile platforms and will then email completed inventories to the origin, destination and booking agents.

Weights will be transmitted via email, directions will be garnered through GPS and digital cameras will expedite the claims process. The driver will be empowered to close jobs, run credit cards and communicate this information back to the main office.

Web-based platforms are replacing windows technology and will help to facilitate the communications infrastructure among salespeople, drivers and the home office. In the next three to five years the supply chain will transition to Radio Frequency Identification. RFID tags emit radio signals that allow for instantaneous tracking of all items in a truck or warehouse. This development will leave an indelible mark upon the relocation process.

There is no question that our industry is changing and it is the responsibility of you, the owner, to understand how these changes will impact your organization.

For more information on which vendors and systems are currently being offered, I suggest that you reference the American Moving and Storage Association vendor list at www.promover.org and take the time to speak with these companies yourself.

Piet Gauchat is the president of Adeena, LLC. For more information on the company and its products, or to reach him, visit www.adeena.net.

Technology symbolizes a threat to those afraid of it and an opportunity for those willing to embrace it.

With no definitive solution that is universally applicable, there is no substitute for doing your homework.

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