Navigating the Trucking Landscape: How DPM Logistics Thrives in a Challenging Industry

Dave Monsell, the owner of Ashland, Virginia-based DPM Logistics, has been immersed in the trucking industry for most of his life. From his early days in the coal mines of Pennsylvania to his time in the Air Force and subsequent move to Virginia, Monsell's journey has been marked by a deep understanding of the industry's intricacies. His entrepreneurial spirit led him to open a truck repair shop, acquire a dealership, and eventually launch DPM Logistics in 2016, a regional carrier serving the East Coast.

Navigating the Trucking Landscape: Resilience and Adaptability in a Changing Industry

Building Relationships and Delivering Exceptional Service

When Monsell started DPM Logistics in 2016, he knew that building strong relationships with customers would be the key to success. He "kept knocking on doors until we built some relationships," he said, and quickly discovered that "good service trumps everything." By focusing on on-time delivery and safety, DPM Logistics has been able to establish a reputation for reliable service, which has led to a steady stream of contract work and brokered freight. Monsell's dedication to his drivers and his commitment to providing exceptional service have earned him recognition as a semi-finalist in Overdrive's Small Fleet Champ competition.

Overcoming Challenges and Adapting to Market Conditions

Like many small fleets and owner-operators, DPM Logistics started by working the spot market to keep its trucks moving. "It took us two years to really start cracking the code and just getting the chance," Monsell said, as he focused on building relationships with smaller brokers and larger shippers in the region. The fleet's growth has been steady, with Monsell aiming for a 15-25 truck range, a pace he has found to be sustainable and allows for the provision of excellent service.The recent downturn in the freight market has presented its own set of challenges, but DPM Logistics has been able to weather the storm. By maintaining a mix of contract work, brokered freight, and spot market freight, the fleet has been able to maintain profitability, even as spot rates have declined. Monsell has also been proactive in managing the fleet's equipment, paying off debt and holding off on new purchases until the economy turns around.

Leveraging In-House Maintenance and Fuel Savings

One of the key advantages that DPM Logistics has is its in-house maintenance capabilities. The fleet's trucks are serviced every 10 weeks, and the company's diesel technicians are factory-trained by Peterbilt and Cummins, allowing them to perform warranty work on-site. This has helped to minimize downtime and keep the fleet running efficiently.Additionally, DPM Logistics has its own on-site fuel, which allows the fleet to save around 70 cents per gallon compared to off-site fueling. With the majority of the fleet's work being regional, this fuel savings has been a significant contributor to the company's profitability.

Prioritizing Safety and Driver Retention

Monsell's commitment to safety is evident in the way he structures his drivers' compensation. All DPM Logistics drivers are paid by the hour, which incentivizes them to drive safely and avoid speeding, as they are paid the same regardless of their speed. This approach has resulted in an excellent safety record for the fleet.To further support his drivers, Monsell offers a range of benefits, including health insurance, paid life insurance, and paid disability insurance. He also pays drivers for vacation time at a higher rate, ensuring that they can afford to take time off without a significant financial impact.These efforts to prioritize safety and driver retention have paid off, as Monsell has been able to maintain a stable and experienced driver workforce, which is crucial in the current challenging labor market.

Navigating the Evolving Trucking Landscape

As the trucking industry continues to evolve, DPM Logistics has demonstrated its ability to adapt and thrive. Monsell's focus on building strong customer relationships, maintaining a well-equipped and well-maintained fleet, and prioritizing the needs of his drivers have all contributed to the company's success.Looking ahead, Monsell remains cautiously optimistic about the future, as he navigates the ups and downs of the freight market. By staying true to his core values and continuing to provide exceptional service, DPM Logistics is poised to weather any storms that may come its way and continue its steady growth in the years to come.