In the latest episode of the Future of Supply Chain podcast, Santosh sat down with Guillermo Garcia, founder of SmartHop. SmartHop is an autonomous dispatcher that helps truckers book loads and become strong business owners. SmartHop is an aggregation channel that pairs the right drivers with brokers and load boards based on individual need.
How Guillermo Came to the Trucking Industry
Guillermo, who was born and raised in Venezuela, started his career at Nestle, where he worked in supply chain for three years. He had an entrepreneurial spirit, though, and decided to found his own trucking company. And, Guillermo was right to follow his instincts: his business grew into a nearly 500-employee logistics company.
Rather than taking venture capital â which isnât a large industry in Venezuela â Guillermoâs company bootstrapped their way to success.
âWe started with one Sprinter van,â Guillermo says. âWe bootstrapped all the way through; that company still exists and runs. And it was one truck after the other.â
His company served major brands like PepsiCo, Nestle, and Unilever, which allowed him to scale the business rapidly.
Transitioning to the United States
With the rising political and economical unrest in Venezuela, Guillermo decided not to keep all his business interests in the country. He entered an entrepreneurship program for Latin American men at Columbia University in New York, which helped him expand his trucking business into the U.S.
Guillermo started a traditional, local business in south Florida, which began growing rapidly.
âWe were very focused on quality of service,â he says. âWhen we got to the point that we wanted to expand even further, was when I began to explored the idea to take my trucks over the road.â
That company started with two Ryder trucks, and quickly landed customers that were well-known nationwide. At first, Guillermo dispatched the trucks himself â but it wasnât long until heâd hired a dispatcher, then began to expand from there into a nationwide trucking company.
The One Thing Trucking Companies Should Focus on to Succeed
âThe main focus is on the driver,â Guillermo says. âYouâre giving the driver an asset thatâs valued between $150,000 and $200,000, so youâd better have it right.
âWhen you hire a driver, youâd better have a good relationship with them. Those guys are driving your business. And not only the business; youâre investing a lot of money, and youâre giving it to a guy thatâs risking it out there every day on the highways.â
Guillermo says itâs important to focus on hiring good drivers, creating a good environment for them, building a strong rapport, and keeping open, regular communication with each of them.
âIn the end, they need to understand that we need technology to help them and help the company make good decisions,â he says. âSo itâs a mix between what the driver wants and needs, how you treat your drivers, how you treat your colleagues. And then, how you bring those technologies and a new star into a very traditional industry â very old-school industry â and how you can onboard those guys into new ways of doing or running their own operation.â
How SmartHop Attracted and Built Its Client Base
Nationwide, the trucker population is large and highly fragmented. There are currently 3.5 million truck drivers, and most of them own 10 trucks or fewer. So how did Guillermo go about attracting them to SmartHopâs platform?
âI think we are in the middle of the right moment, to apply technology like ours, or to bring a technology like ours to those guys,â he says. âBut these guys â mom and pop, small owner-operators, and even the large corporations â are embracing technology because they know that thatâs the only way for them to be able to be successful.â
According to Guillermo, truckers already use an array of apps, ads, and websites to choose from, when it comes to engaging with brokers and finding loads. To reach truckers through digital marketing, Guillermo started by speaking their language.
âWe are focused on a very specific niche, and weâre communicating in their language to help them understand that they need our technology and that we can help,â he says. âThrough our technology, we can help them reach all the other technologies that are out there.
âImagine trying to download 20,000 brokersâ apps and trying to do what Uber and Lyft drivers do between two apps. Imagine trying to do the same thing with 20,000 apps. Itâs impossible.â
Guillermoâs Top Advice for Truckers in the 21st Century
Guillermo says itâs important for truckers to understand the new commerce.
âThese guys are old-school,â he says. âEverybody knows, in the back of their mind, that they need technology. But theyâve been bombarded with millions of ads and people trying to help them out. If you read the blogs out there, theyâre a little bit fed up.â
Itâs critical to approach truckers as seamlessly as possible. SmartHop, for example, isnât an app; itâs web-based, and it helps truckers and brokers engage with one another in one place. Itâs a way to transition old-school drivers until the industry, as a whole, embraces a wider range of tech and learns to integrate it more fully with their customers.
Advice for Business Owners in the Supply Chain Industry and Beyond
When Guillermo came to the U.S., he had no connections in the trucking industry and no network of employees or prospects he could access. But he worked every day to make those connections as he established his businesses and began to grow.
âYou need to grind. And donât take no for an answer,â he says. âEven raising capital, it only takes one VC to say yes. For you to be able to reach your goals, it only takes one successful partnership for others to start believing in you.
âFor others to come in and embrace your technology, you just have to really understand the value that you bring in to your customers and your partners.â
For Guillermo and his team, persistence is the name of the gameâ
âWe donât stop because people tell us no. We donât stop because people donât see our vision. It only takes one to fully understand and to allow us to make it where we want to make it.â
To stay on his A-game, Guillermo starts every day by reading the latest supply chain industry news to better understand where the industry stands, and where itâs headed. He spends time calling truckers to connect with his target audience and better understand their struggles.
âIf I match their struggles with whatâs happening in the industry at a high level, thatâs what keeps me motivated.â
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Listen to the full Origins episode with Guillermo Garcia here, or visit SmartHopâs Website to learn more about the company.