ROCKVILLE, Md. – September 29, 2009--
Transportation Costing Group®
(TCG), specialists in activity-based profitability and cost analysis for the transportation industry, today announced that FFE Transportation Services is utilizing its Truckload Cost Information System (TL/CIS) and its CIS for Irregular Route LTL. The leading motor carrier has been using the solutions to improve profitability in several segments of its operation for several months.
“These are intense times for the trucking industry,” said Adam Bush, manager, marketing technology at FFE. “As freight volumes and rates continue to decrease and pricing pressures rise, we are finding that TCG’s Truckload and LTL solutions are proving extremely valuable for maintaining asset productivity and identifying opportunities to improve profitability. With these solutions we’re handling loads more profitably.”
At FFE, TCG’s tools are being used to identify profitable and unprofitable loads in different regions and over specific lanes. For example, the carrier was able to identify one region where a lack of outbound loads at sufficient rates created an unprofitable environment. By adjusting its load sourcing accordingly, FFE was able to increase revenue per mile for that business by over three cents without losing freight volume.
“TCG CIS gives us a top level view of our profitability, and lets us drill down to pick and choose loads strategically,” Bush stated. “Its strong analytical capabilities identify pricing pressures on a case by case basis. In some cases, it can also help our customers understand the need to adjust rates, or to find a solution that works for them and is still profitable for us.”
Profitability analysis is also proving valuable in FFE’s growing intermodal operation. “The TCG solutions incorporate the costs associated with rail and drayage portions of each intermodal haul,” Bush added. “This is also an example of how TCG works with us to develop the cost analysis solutions that we need in a competitive environment.”
“To give FFE the tools to make decisions that will improve profitability,” said Ken Manning, president of TCG, “TL/CIS and LTL/CIS provide quantified cost and profit information related to each activity, dispatch and load. The complexity of their business presents an opportunity to demonstrate how our activity-based software provides exceptional value and is perfectly suited to address the immediate and long term cost analysis needs of Irregular route LTL carriers such as FFE Transportation Services, in addition to their truckload services.”
FFE Transportation Services, a publicly owned transportation company headquartered in Dallas, Texas is a provider of temperature-controlled truckload, LTL and dry truckload services throughout North America. The company also offers logistics, expedited, ocean and brokerage services locally and internationally, as well as an intermodal program that provides temperature controlled, dry and LTL freight hauling from coast to coast.
The TCG CIS systems in use for all aspects of FFE’s business utilizes information from the carrier’s enterprise management software purchased from Innovative Computing Corporation to provide accurate, specific cost information for pricing, and traffic, profitability and operational productivity analyses. The TL/CIS and LTL/CIS solutions reconcile with the company’s General Ledger, payroll and driver settlements.ABOUT TCG
Transportation Costing Group is the provider of the most widely used suite of Activity-Based Costing models to the motor carrier industry. TCG provides models tailored to specific carrier operations. Information on the Activity-Based Costing Models and services offered by TCG can be obtained by contacting (800) 328-9700 or email@example.com
. For general product information please visit www.tcgcis.com
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