Smart fleets can't afford to miss this

Navigating the world of trucking as a small business is, maybe ironically, no small feat. Fleets have to juggle changing regulations and keep up with new technologies, all while still delivering critical goods on time.

Oliver Hedgepeth has done all that and more, from supplying Navy bases with groceries to pioneering AI-driven logistics with the Army. A lifetime member of the Owner-Operator Independent Drivers Association, former owner of Hedgepeth Transport, and founding director of the Army’s Artificial Intelligence Center for Logistics, Hedgepeth has a unique vantage point on how the industry is changing. We caught up with him to talk policy, tech and the future of small fleets.

— Interview by Shefali Kapadia, edited by Bianca Prieto

 During your time as an owner-operator, what was the biggest challenge you faced? And what was the most rewarding part of the job?

The biggest challenge was trying to find and hire a competent driver that would deliver goods on time, show up for work and not back up an 18-wheeler into some muddy grass at a truck stop that could cost me thousands of dollars. I did find very good drivers, some of whom were from the military. For the most part, they had already made mistakes and were very good on the whole. The most rewarding part of the job was seeing the customer happy. For example, we delivered groceries three times a week up to a Navy base. To see the looks on managers’ faces when we showed up on time was very rewarding.  

What’s one trucking-related finding from your research that still sticks with you today?

Seeing so many changes in policy and procedures from the federal government that restrict drivers and owner drivers from doing their job. Sure, they make sense, but if you miss one little rule, a state trooper can pull you over and give you a $500 fine. The rule changes came so fast sometimes that if you didn’t keep current on every single thing, you would get fined heavily. You really have to do your job and research constantly. I would suggest drivers remember to do research on the rules and regulations that come out this year, not last year. It’s a seven-day-a-week job to stay on top of that. 

From your work with the Army's AI center, what's one lesson from military logistics that could apply to commercial trucking?

The Army AI Center for Logistics was where I cut my teeth. One thing I found was that AI was very useful for getting everything in order. In many cases, a sergeant or manager could make a fair amount of repairs on a truck by doing some research and having a base level of skill. Today, AI could tell you in 2 seconds what is wrong with your truck. It gives you the right tools to fix trucks and can be used to ensure successful operations. 

How do you see technology and AI transforming the trucking industry over the next five years, especially for smaller fleets?

You can easily search online for what the new regulations are coming out this week, next week, etc., for managing a truck with hazardous materials, for example. There are some products that you might not think are hazardous materials, such as wax candles. If you’re driving 5,000 pounds worth of wax candles, then someone adds another pound of wax candles, that could turn the load into hazardous materials. You have to do your homework to find out whether this is hazardous material. If it is, you would have to have a hazardous material sign on your truck, and then your driver has to be certified to drive that, among other things. 

What’s your No. 1 piece of advice for owners of small fleets or owner-operators to adopt tech while balancing costs?

Hire a good accountant who understands AI. A truck driver doesn’t pay bills like normal people do. They are on contract. But revenue is coming in daily. When a 90-day note comes up, you have to file taxes, or hire an accountant, or store which [bills] need to be paid. Look at accounting practices.

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The Inside Lane is curated and written by Shefali Kapadia and edited by Bianca Prieto.