WHY PEOPLE GO BANKRUPT DOING TRUCK BUSINESS IN NIGERIA: THE MANAGERS (3)

Managing a truck business is not a job that can be fallaciously given to anybody without the sound knowledge of logistics, on-the-field experience (if you like call it an “Agbero-like” experience), undiluted expertise on parts ...
procurement and store keeping, a good knowledge of the trucks he/she intends to manage and the most important HONESTY (this virtue supercedes every other qualities).

Choosing a truck manager is like going to a doctor for surgery and not a nurse, so standard must not be compromised! If you don’t have someone who has the criteria please (let me repeat “please”) don’t bother going into the truck business!

Some truck managers are who we referred to as a “transporter” (a transporter in the local truck environment context is a person who has a link in a company(mostly small companies) and has being given the opportunity to haulage goods for the company, he/she is not a standard 3PL). Such managers manages the truck solely for self-aggrandisment and extortion of the boss through parts procurement, and unnecessary repair. Some managers collaborates with drivers for un-documented loading and reverse loading. In fact some terrible managers have a percentage in diesel allocation. The consequences of all these actions is that the owners will continuously spends on the trucks without results, at a point the owners have to buy brand new tyres for replacement every 6 months (for examples 18 pieces of tyres at N60,000 = N1,080,000 for a double aisle flat body trailer), apart from the unnecessary repairs, the owners might be spending their personal income on the un-profitable trucks. After a while the truck engine starts to demand for repair or maintenance. These and many other factors is what makes a lot of truck owners frustrated thereby abandoning their trucks in the truck yard, travelling back Abroad and eventually selling the trucks in “scrap” most times over 60% less than the value of the truck, what a tragedy!

Let me just conclude by saying if you want to choose a manager for your truck business, HONESTY is key! The person must first be honest (honesty can be determined through precedence for example go for a background on he/she’s formal employer or amongst former colleagues) , honesty is a virtue that is cultivated over a long period of time. He might not necessarily be very sound in truck matters but with time he will learn. The owners most place the managers in percentage earnings (not salary) for example 20% of income generated/month after all expenses deducted. This model will motivate the manager and keep him on the right track of doing the right thing. Please note that “if someone is sound in logistics, on-the-field experience , undiluted expertise on parts procurement and store keeping, a good knowledge of the trucks he/she intends to manage but he/she is NOT HONESTY please don’t bother employing the person”.

So the golden rule- HONESTY is very important in choosing a truck manager.

Follow me on twitter Ayoola Ashiru™ let’s keep the conversation going. The last series of this episode will be released soon and it’s all about from the “owner’s” perspective. WHY PEOPLE GO BANKRUPT DOING TRUCK BUSINESS IN NIGERIA: THE OWNERS (4)