Meeting or Exceeding Standards Can Lead to Profitability

Standards provide a basis for comparison or a level of attainment to avoid being judged as "sub-standard." People also find that meeting or exceeding standards can help to provide a path toward acknowledgment from onlookers that a sound foundation, based on current performance, is in place.

Regulations in the transportation industry are an example of standards that are set and are then used as a basis for judgment. These regulations have been established as the minimum level of acceptance for safety within the industry. One of the ways carriers are tested against these standards is through inspection processes, which can occur along the side of a highway or at the carrier's main place of business.

In preparation for these inspection processes, many carriers have increased their efforts in training their drivers and employees. Carriers have also looked at the internal processes they have in place for recordkeeping and reporting. While these areas may not exclusively prevent an accident, they do provide evidence that the carrier has taken action to heighten the awareness among those who could face such an occurrence.

As it is with any course that improves a current environment to meet certain standards, costs to the company are involved. In fact, some motor carriers have appraised these costs to run $500 or more per driver. These efforts have also impacted hiring practices, maintenance schedules, and incentive programs that build in safeguards not only to boost a carrier’s performance when experiencing an inspection, but also to prevent a costlier event - the high cost of a crash.

Conforming to standards may seem less costly for larger motor carriers, since their financial resources may be deeper than a smaller carrier with fewer vehicles and employees. Whether that thought is true or not, investing capital to instill a greater safety culture through training and awareness actually strengthens the carrier's financial position. Safe drivers have fewer violations, more on-time deliveries, and fewer accidents. Because the company spent its time and assets to conform to industry standards, it has sequentially made itself more profitable.