In the December 12, 2008 Stifel Nicolaus
white paper “Taking the Knife Out Again; Near-Term Pain Should Be Long-Term Gain,”
David G. Ross noted that “Our favorite names currently are Vitran, Saia, Con-Way and Old Dominion Freight Line…”Each of these favored carriers is a TCG client. They know the profitability of each of their customers, by shipment and in detail. Do You Know Exactly Which Shipments Are Profitable and Which Are Not?
The credit squeeze, reduced freight volumes, fuel costs, “slow pay” by shippers and brokers…All of these factors affecting the trucking downturn seem to be out of your control. But is Profitability Management really outside of your control? TCG’s clients, both LTL and TL, are using our Profitability Management Tools®
to keep track of the changing costs of each shipment and load. From actual fuel cost to late payments, and including full overhead, TCG clients know which shipments are profitable and which are not. And having a clear vision of where profitability is lost is the first step toward regaining it.
Here’s what just a few of our customers are saying:“TCG is providing us with valuable knowledge about our costs and helping manage profitability.
We believe it has been partly responsible for the improvement we’ve realized in our Operating Ratio.”
Senior Vice President of Strategic Development
Old Dominion Freight Line “…. one shipper asked for a rate adjustment and with TCG’s help we were able to access profitability data on their business for the previous nine months.
That helped us negotiate with this customer, adjust rates for part of their business and determine if we should accept other loads from them.
Without that help we couldn’t distinguish if this business was profitable or not.
With TL/CIS we are more competitive and can expect to realize sustained growth and profitability.”
Executive Vice President and CFO
E.L. Hollingsworth & Co.
As an industry, and a nation, we are in this economy for awhile longer. But, now is not the time to bemoan the fact or bury our heads in the sand; use this time as a chance to review and improve your processes. Understand where your profitability lies (or where it doesn’t). Evaluate your customers, your lanes, and your operating practices accurately and in needed detail, so when things improve, you will be prepared and ready to take action to move forward.
Contact me today at email@example.com
or by phone to learn more about TCG’s Profitability Management Tools®
and how they can help you improve profitability.
Ken Manning, President
Transportation Costing Group