The role of the DC in driver shortages

OVER THE last year we have seen a number of initiatives launched to attract more drivers, from subsidised training to more flexible shift patterns and better pay. While these are a positive step in the right direction to solving the driver crisis, it’ll take some time until we really feel their effects. In the meantime, we should be looking at the other interlinked aspects contributing to current pressures in the supply chain.

A key challenge for the industry are the often significant delays at distribution centres and the knock-on effect these have on the number of deliveries that can be made. It’s not uncommon for drivers to experience up to four to five hour waits, making it impossible for them to move on to a second job in turn causing them to disappoint other customers. This issue is not exclusive to the UK, in Spain and Portugal it has been recognised as serious and damaging enough to the wider economy to have been addressed in new legislation. But these issues can and should be tackled without waiting for new legislation to be introduced, and there are changes that can be made quickly to help.

One of the major causes of delays is lack of visibility. With contracts fulfilled by a range of different carriers, it’s incredibly difficult for distribution centres to have proper, up-to-date, oversight of when their deliveries are coming in. They rely on drivers calling in with travel updates, and the message being passed on again, in order to know about any potential delays and often the information reaches them too late. The way to tackle this is by making the process digital. DigiHaul’s network of 750 carriers are visible at all times. This gives customers’ RDCs real-time knowledge of where their deliveries are, allowing them to properly plan unloading and make sure the necessary paperwork is ready.

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As well as looking at a digital transformation, there are simple cultural changes we can and should be making now. In many cases drivers are asked to unload their deliveries before they are able to leave, adding extra time and physical stress to the situation. There are no doubt pressures on RDC staff, but as the legislation in Portugal shows this is an area of vital importance and we must look at making efficiencies in this part of the chain if we’re to alleviate some of the broader industry challenges. 

Linked to this, the industry would benefit from setting out clearer terms around demurrage to ensure it’s not inadvertently penalising drivers. Payment for delays and loss of earnings can often be surrounded by confusion, with every RDC operating according to slightly different terms. DigiHaul includes a two-hour waiting time as part of its fee, and then charges a flat fee to the RDC, which goes to the haulier, for every hour over this. Setting the terms out upfront like this provides transparency and security to the driver, who knows they’ll be paid for their time, and an incentive to the RDC to get the driver back out on the road. 

Taking a wider view, if we are to create sustainable, long-term change, it's essential to think about rebuilding the relationships between RDCs and drivers. Practices like ‘sinbinning’ of drivers for short delays, or removing keys from drivers when they arrive, create unhelpful tension in a relationship that is already strained by staff shortages. Instead, we should be looking at making improvements to facilities in RDCs to make any waiting times easier, on the understanding that some delays are unavoidable. 

The UK’s driver shortage won’t be solved overnight, but when drivers are regularly facing four to five hour waiting times, it’s clear that the industry needs to make some significant changes to the way it operates.

DigiHaul has a a 10 year contract with DHL Supply Chain to act as its primary sub-contractor for haulage.

Matt Garland, sales leader, DigiHaul

For more information, visit www.digihaul.com