CCJ

September 2012

Fleet Management News & Business Info | Commercial Carrier Journal

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technology Hitching a ride to the cloud Outsourcing gives contractors, fleets more choice with less risk F leets with independent contractors have to be careful in how they manage driver relationships. Any missteps could result in tax agencies clamoring over the status of their ICs. By reclassifying them as employees, agencies can collect large sums of payroll taxes in arrears. In the eyes of the law, control is the central issue. Fleets can require their ICs to meet certain standards for service, safety and compliance. Some have crossed the line by exercising too much control over the products and services that contractors use, such as company lease programs, maintenance, fuel and insurance. All fl eets have a vested interest in the success of their ICs, but drivers often are hampered by a lack of skills, training and experi- ence in how to run a business. Knowing how and when to offer assistance can be a delicate balancing act. "We try to be helpful in every way we can," says Tom Kretsinger Jr., president of American Central Transport, a Liberty, Mo.-based dry-van carrier. "We give coaching if they want, but it's up to them to choose it." ACT monitors compliance, safety and performance data 52 COMMERCIAL CARRIER JOURNAL | SEPTEMBER 2012 collected from onboard computers for its fl eet of 200 contractors. Signs of low fuel economy and drops in earnings and mileage may signal a manager to contact a driver and offer to help, but Kretsinger believes that the more services you can outsource, the better. "I like outsourcing, " LESS RISK: Fleets and contractors stay at arm's length. REAL-TIME CONSULTING: Tech- nology keeps drivers in the loop. VESTED INTEREST: Fleets depend on contractors' success. he says. "We have some drivers that lease their trucks from a different source. They all make their own decisions. We try to provide them an avenue, and they choose to take it." A number of companies special- ize in giving drivers business training, consulting, equip- ment and other services to help them succeed while

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