Operating ratios
Discussion in 'Motor Carrier Questions - The Inside Scoop' started by chalupa, Feb 22, 2012.
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Get a fleet of 500 trucks and then you can compare yourself to the megas.
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There is nothing more efficient that a one truck O/O who is consistently profitable and successful.
The larger a Corporation becomes, the more inefficient and ineffective it gets.chalupa Thanks this. -
That carrier highlighted for having an OR of 90 was doing better than one with an OR of 98.chalupa Thanks this. -
K, i just didn't see the difference. In theory you should be able to repeat my operation 500 times for 500 trucks. But that's only a theory.
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Good job chalupa,keep it going and best of luck. I surprised the mega co.s don,t spend 3 to make 1 buck.
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At first the ecomomies of 'scale' help; as you scale up the return is the same because you have 'gains' that off set the growing inefficiencies.
Since trucking companies also grow by gobbling up other trucking companies, it is possible to pass the point of diminishing returns by a large amount during a merger and during the time where the new part of the organization is adjusting to their new ownership managemetn will fail to see the drop in return until the company is in dire straits.
The downturn in the economy forced alot of companies to fold up like an empty tent because they just couldn't work their way to profitability when ther e was no business.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
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