Shacman Philippines: A Guide to Trucking Businesses
A Brief History of Trucks
Shacman and other Philippine truck dealers would not be existing today if it weren’t for the pioneers of trucks.
Ever since Karl Benz designed and built the first combustion engine truck in history in 1895, thousands of trucks have been produced for many different purposes. Over the course of time, they have proven to be an indispensable asset to the logistics industry.
However, trucks weren’t originally vehicles powered by a powerful combustion engine.
Like cars, they originated from steam wagons, which were essentially the very first freight vehicle. Most notable is the fardier à vapeur, or steam dray, which was invented by French Army Captain Nicolas-Joseph Cugnot. The fardier was invented in 1769, but steam wagons didn’t become common until the mid-1800s, primarily because the roads during that time weren’t built for such vehicles.
1881 was the year a semi-trailer first appeared, and it was towed by a steam tractor. Steam wagons stuck around up until 1935, which was the time when diesel-powered trucks were becoming more mainstream. While gasoline engines were still in use in the 1970s in the United States, diesel engines eventually became the standard relatively quickly.
Fast forward to the 21st century, and we’re looking at hundreds of truck dealers like Shacman in the Philippines.
Indeed, trucks have come a long way from delivering cargo at short distances, to the modern diesel-powered trucks that travel through multiple regions carrying a much larger load compared to centuries before.
Trucks are the most effective method of transporting cargo by land, and will remain important for as long as there is business.
Methods of Cargo Transportation
There are three ways the process of transporting cargo can be done: by land, by sea, or by air. The process is referred to as shipping, or more formally known as logistics.
The earliest methods of land transport were animals, such as horses and camels, and, sometimes, even humans. The first routes were mostly swamps, mountain passes, and dirt tracks that were created by quarries.
Eventually, a network of roads was established, spanning from Rome to as far as Korea and Japan, passing through what is known as Eurasia in the present day.
These roads were famously known as trade routes that allowed interactions between the different cultures across the continents, and were progressively improved by kings and emperors in their reigns.
The modern concept of land transportation is hardly any different when compared to the ancient times; goods are to be transported to a destination, and there is a predetermined route to follow.
There are much more roads today than there were before, but trucks follow routes designated by the government, and at specific times only.
Also known as maritime transport, it is the transportation of cargo by sea. Like land transport, freight transport dates back to the ancient times, and is the most widely used method of cargo transportation today.
Freight transport by sea is considerably riskier compared to land transport due to the very unpredictable nature of the waters; hence, similar to how land transport works, specific routes—which are usually the safest and fastest—are followed.
Maritime transport makes use of various bodies of water to get to their destination, from seas and oceans to canals and straits—and with an expert navigator on board at all times.
Air transport, also referred to as cargo airlines, is freight transport by air.
Cargo airlines are usually dedicated to the purpose of transporting cargo, but some are divisions of larger passenger airlines. Cargo transportation by air is much faster than transportation by sea, but it also more expensive.
Cargo airlines transport goods from one airport to another, and from there, land transport takes over. Transportation by air has its own hazards such as storms and turbulences, so air transport operations are planned carefully, and are headed by qualified and competent personnel.
How Trucking Businesses Work and Their Success
There are a lot of truck dealers like Shacman in the country, such as Foton Philippines, from which you can acquire quality trucks, which you can then use to start a business.
Trucking businesses are always needed in the industry, and now that e-Commerce is growing rapidly, there isn’t a better time to get involved.
Running a trucking business isn’t easy—it’s an investment that takes a lot of work, but returns are always guaranteed.
Starting the business is perhaps the most tedious part—a lot of decisions to be made, and a lot of requirements need to be submitted.
Before starting a trucking business, the owner must decide if he wants to operate the truck himself, or hire drivers to do the job. Each has its own pros and cons:
- Control over the vehicle. You can provide the care and maintenance you want.
- Salaries, health insurance, and other government-required benefits for employees are unnecessary.
- You can’t focus on your business too much.
- Capital and operation costs may be higher.
- You can focus on your business more.
- Capital and operation costs are lower.
- Vehicles may not get the care and maintenance you want.
- Some hired drivers may cheat on profits.
Once a decision has been made regarding the operation method, the owner must decide what kind of trucking business he wants to run—some of the most common ones include:
- Supplies delivery
- Courier service
- Truck leasing
After that, submission of requirements to the Philippine Economic Zone Authority, or PEZA, follows. Below is a list of requirements:
- Letter request addressed to the PEZA Director General
- Endorsement letters from prospective PEZA clients, with at least 1 company
- Notarized application forms and Anti-Graft certificate, both provided by PEZA
- Notarized Board Resolution authorizing the filing of the application and designation of the representative
- A complete list of employees
- Personal History Statement of Principal Officers
- Audited Financial Statements for the past three years, or an Audited Balance Sheet for companies which have been operating for only six months
- Certificate of Registration from DTI for sole proprietorship, and/or Certificate of Registration from SEC for partnership and corporation
- Articles of Incorporation, for partnership and corporation
- Updated BIR Clearance, or Certificate of Registration
- Mayor’s Permit for the current year
- Annual Permit to Operate from the Philippine Port Authority
- List of non-PEZA clients
- Schedule of Service Rates
- PRC Certificate and ID, and BOC accreditation; for licensed customs brokers
- Common Bond with Bureau of Customs
- List of vehicles certified and signed by the company’s official
- Copy of Franchise of LTO
- Updated OR/CR of vehicles under the name of the applicant
- List of PEZA clients
- Certification of No Derogatory Record from the Security Services Department
- Photocopy of Provisional Authority
After the legwork has been completed, choosing the truck appropriate for the business follows.
Choosing the Right Truck
There a lot of things to consider when selecting the truck that businesses will be using—it is, after all, what keeps your business running.
Shacman is one of the Philippines’ most reliable brands, but the type of truck you choose must be the right one for your business, down to the smallest components.
What you want is a truck that performs smoothly and is perfect for your business, and can be maintained relatively easily. It’s recommended to stick with a single dealer, one you can trust and knows exactly what kind of trucks your business requires.
Ask Around for Opinions
The more known a truck dealer is, the higher the probability that it has proven itself as a solid manufacturer of quality trucks.
The reputation is sometimes enough for some, but in making such crucial decisions, opinions and feedback from others who have had experience with the particular brand should always be considered.
If you want something affordable but can really deliver, you can also consider the trucks from Japan surplus Philippine stores.
Be Specific About What You Need
The more information you can provide to the sales representatives of the truck dealers you are considering, the better. You will make things easier for both of you, and you will also save precious time. Reliable truck dealers like Shacman Philippines offer a wide selection of quality trucks.
Some of the truck specifications you can provide include the maximum load limit, and the type of terrain it will be operating on. The sales representative will then use the information you have given to determine various truck specs such as the engine type and tire size, as well as provide you with a list of the best trucks for your business.
Get an Insurance Policy
Once you have successfully chosen a truck for your business, it becomes a matter of taking care of it and maintaining it. However, this can only do so much, as accidents are sometimes unavoidable. Be sure to get your trucks covered by an insurance policy in case of events like these.
Focus on Delivering Quality Service
Face it—the trucking business, similar to other industries, is full of competition. There’s nothing that can be done about it other than proving that your business can hang with the big guys.
Keep Your Trucks in Top Shape
No matter how talented a general may be, it will be a waste if his soldiers can’t carry out his strategies. Similarly, you may be a brilliant businessman or leader; but if your trucks aren’t in prime condition during operation time, things are bound to spiral out of control.
Make maintaining your trucks a top priority, as they will be responsible for how clients and customers see your business.
Check on Your Teams Regularly
A job is something you know like the back of your hand. It’s something you perform on a daily basis, and something that gets easier over time.
However, this doesn’t mean that once your employees get the hang of their work, you can stop checking on them. Always make time for meetings and conferences, and make sure that the people in your team are working with each other well.
Learn from the Competition
The other trucking businesses may appear to be walls to climb over, but they are actually good sources of information you can use to grow your own.
Always keep an eye out for the moves your competitors make. From them, you can develop new strategies to improve your business, or learn to avoid certain mistakes that cost them.
Trucking Businesses and e-Commerce
Online shopping is one of the features afforded by the digital era, and it has quickly grown in the past few years. Online transactions are made every minute of the day, and when there are online transactions, there are shipping arrangements.
The main benefit of online shopping is convenience, and courier services are responsible for making it possible. For trucking businesses, this is a great opportunity.
Shaping the structure of your trucking business specifically for e-Commerce is an excellent idea—not just for now, but for the next decades as well, as e-Commerce is still continuing to grow.
Starting now can prove to be extremely beneficial for your business and ensure its success in the years to come, and there are truck dealers like Shacman Philippines that can help you achieve it.
Shacman’s Commitment to Providing Only the Best
Ever since its establishment in 1968 as Shaanxi Automobile Manufacturing Plant, Shacman has produced top-quality trucks and has provided excellent service to its customers.
Initially producing military off-road vehicles exclusively, Shacman has grown over the past decades, and now designs and manufactures various vehicles and equipment such as light, medium, and heavy-duty trucks; medium and large coach buses; mini vehicle and heavy-duty axles; and other vehicle components.
Shacman came into the Philippines on August 12, 2012, and if you want to ensure that you only get genuine Shacman trucks, then Autokid Truck Solutions is your best bet.
Shacman offers various truck types such as lorry trucks; tractor heads and trailers; special purpose trucks like tankers, mixers, and dump trucks; and heavy equipment like backhoes and loaders. All of Shacman Motors Incorporated’s products are built using the best materials, and are backed by industry experts and the most innovative technologies.
And you can get your hands on these trucks with the help of Autokid.
Here at Autokid, we ensure that truck users in the country have access to the parts that they may need. Our team is also composed of highly competent engineers and technicians who are always ready to provide support to our customers.
Click here to find out more about the products and services that Autokid Truck Solution offers, and why we are one of the most dependable companies in the Philippines when it comes to trucking solutions.
Our team is excited to work with you.