In the wake of the pandemic-driven ecommerce explosion and the continuing popularity of online shopping, home delivery has increased substantially over the past few years. More packages mean more last-mile delivery vehicles on the road. According to the Bureau of Labor Statistics (BLS), there were 1,164,600 light truck drivers delivering packages across the U.S. in 2022 and that number was predicted to grow 11% by 2023.
With the increasing volume of packages, drivers and stops—upwards of 200 per day per vehicle—the risk of road accidents and parking collisions grows, creating a complex safety challenge for ecommerce retailers, last-mile carriers and the thousands of subcontracted delivery service providers working as agents for larger carriers.
The Non-CDL Safety Dilemma
Creating a culture of safety for drivers operating large trucks—those vehicles requiring a commercial driver’s license (CDL) and a gross vehicle weight rating (GVWR) greater than 26,000 pounds (e.g., tractor trailer)—is an ongoing challenge for distribution-focused companies, yet large carriers and powerhouse retailers responsible for the pickup and delivery of millions of packages to consumers’ homes face a unique and even more complex safety challenge.
Notably, delivery-focused companies that leverage independent service providers to deliver packages on their behalf using final-mile vehicles (e.g., box trucks, cargo vans) must contend with the fact that drivers of these types of delivery vehicles do not require a CDL. This distinction means drivers don’t have to attend specialized training, pass a specific knowledge and skills test, complete a background screening or undergo a physical exam in order to get behind the wheel.
In fact, government regulations allow final-mile drivers to use their standard Class D driver’s license when operating a box truck or similar non-CDL vehicle. As a result, drivers typically bring their car driving habits and behaviors with them into the last-mile environment, kicking off a cascade of safety issues for distribution-focused companies.
Delivery companies cannot afford to ignore the potential impact that multiple years of car driving experience and ingrained bad habits can bring to the last-mile job. In addition to the heightened risk of injury and death—for both drivers and the public—attributed to poor driving habits and risky behaviors, companies must manage the fallout from the ensuing poor Compliance Safety Accountability (CSA) scores, as set out by the Federal Motor Carrier Safety Administration (FMCSA).
High CSA scores can translate to higher insurance premiums, deductibles or even denial of coverage; a greater risk for FMCSA intervention and investigations; potential out-of-service orders; and, ultimately, loss of revenue—a costly predicament on every level.
Bottom-Line Impact of Unsafe Driving
First and foremost, carriers aim to ensure the safety of their drivers and the public in the course of their pickup and delivery operations—but profitability is also important. Indeed, while holding safety as a core value, the industry’s financial incentives have historically prioritized productivity and on-time delivery metrics.
Given the detrimental impact of poor driving behavior on the bottom line, however, carriers and other distribution-oriented companies are realigning their priorities, getting creative with contractor and driver pay models that tie compensation rates and bonus payouts directly to safety performance ratings.
Some large retailers and carriers have implemented grading systems for their delivery contractors based on CSA categories that reflect drivers' safety performance. To encourage buy-in of driver safety programs, independent service providers with low (good) scores earn bonuses and “contractor of choice” benefits, including more lucrative and/or additional routes.
Building a Safety Culture to Protect People and Profits
Developing a safety culture amongst final-mile logistics contractors is a strategic priority for companies focused on home delivery, but what steps are they taking to improve driver safety and secure buy-in from drivers in the field?
The most impactful and cost-effective approach combines technology with personalized training. Indeed, safety technology goes hand-in-hand with driver safety training—both proactive and reactive—to improve driving performance, provide accountability and cut transportation costs, while ensuring safety and compliance standards are met.
On the technology front, video telematics provides driving event detection and verification, using dual-facing Video Event Data Recorders (VEDR) mounted in vehicles to capture video footage, location data, and monitor the cabin and roadway for unsafe driving events. When incorporated into safety programs, these devices help to foster safe driving habits, reduce accidents and protect against liability claims.
With the growing prevalence and acceptance of AI-powered tools, last-mile carriers are also looking at machine vision + artificial intelligence (MV+AI) solutions to help drivers unlearn their bad car driving habits. By monitoring the cabin and roadway, MV+AI solutions can instantly alert drivers of unsafe events—distracted driving, seatbelt use, failure to stop, lane departure, unsafe following distances—and empower them to change their behavior in real time.
Safety Double Shot: Proactive + Reactive Training
While technology, and dual-facing AI cameras in particular, is an integral piece of the driver safety puzzle, pairing tech tools with training is essential; otherwise, companies may simply end up watching their drivers exhibiting bad behavior! For maximum impact, the driver safety training program should comprise proactive and reactive training and be delivered in a format that doesn’t disrupt drivers’ workflow.
Proactive safety training involves micro-lessons sent to drivers multiple times per week, typically before they start their routes, in a captive format on their mobile devices. By dripping tailored microcontent to non-CDL drivers, logistics companies can help rid drivers of their bad habits, effectively changing the way they think about driving and parking.
Reactive training leverages VEDR systems with in-cab cameras to automatically detect unsafe driver behavior in real time. Tailored coaching content, including a recording of the incident, is sent in response to driver actions to immediately address any safety concerns, encourage positive driving behavior and help reduce future incidents.
Compliance Slam Dunk
Prioritizing driver safety and, thereby, the public’s safety is the right thing to do on a human level, but it can also benefit the financial and reputational health of the organization. With the right technology and driver safety training in place, distribution-focused companies can automate U.S. Department of Transportation (DOT) and Occupational Safety and Health Administration (OSHA) compliance.
For example, comprehensive technology-powered driver safety programs simplify and streamline DOT audits, automating the submission of documentation (e.g., records and logs related to drivers, vehicles, safety training) to verify that the company has established effective safety management controls to ensure compliance with FMCSA regulations—minimizing the risk of costly penalties and fines and protecting the brand reputation.
Creating a culture of safety for last-mile logistics delivery providers doesn’t have to feel like someone’s bringing the compliance hammer down on drivers. By asking drivers questions about their experiences in the field—their near misses, parking incidents, unsafe driving behavior by the general public—and getting buy-in through answers from the team, organizations can tailor proactive and reactive training to reflect the unique needs of their driver workforce, ultimately making deliveries safer, enhancing compliance and optimizing performance to drive revenue growth.
