Truckload Cost Information Rapidly Growing in Popularity

BETHESDA, MD – Transportation Costing Group® (TCG®), the leading provider of activity-based cost analysis and customer profitability management systems for the transportation industry, today announced that Elwood, IN-based RG Transport has adopted the company’s Truckload Cost Information System® (TL/CIS®).   TL/CIS provides a highly effective Activity-Based Cost analysis capability and is currently the only such system that offers a complete, accurate and fully replicable costed traffic database that ties back to the general ledger.

“Double digit growth in our business for the last five years created so many additional customers and loads that trying to keep track of profitability manually became an administrative burden,” said Dick DeBoer, COO for RG Transport.   “Rising demand for our equipment requires us to have accurate and timely data so we can decide how to allocate resources and which customers we need to improve our operating ratio on.   We realized we needed software that could accurately and effectively support those decisions.   TL/CIS has proven to be the right tool for making effective business decisions.”

After a comprehensive evaluation of TL/CIS as well as a comparison to another solution, RG Transport opted for the TL/CIS.   The 130-tractor irregular route dry freight truckload carrier mainly serves customers, including food producers and other manufacturers east of the Mississippi River, carrying loads from production facilities to distribution warehouses.   In addition, the company has a third-party logistics operation that serves as a freight brokerage to match its customers’ loads with other carriers.

“Everyone at RG Transport is very pleased with the TL/CIS software and is completely confident in its accuracy,” DeBoer stated. “It has met or exceeded all of our expectations. With this solution, we have been able to secure rate increases and new or better traffic lanes from existing customers, as well as determine rates for new customers and gain new, dedicated traffic at very attractive rates.   Recently one of our primary customers asked us expand our coverage from 12 to 55 loads a day.   An increase of this magnitude was going to place our equipment in areas which we were not accustomed to.   The TCG software allowed us to review deadhead percentages out of these area quickly so we could present a proposal at acceptable margins.”

One capability of TL/CIS that DeBoer says he finds especially valuable is its desktop prompt that enables easy access at all times to the TCG solution.   “It was always very labor intensive to analyze profitability by customer because we had to request data,” he related.   “TL/CIS gives us a huge advantage by eliminating much of that labor. With it, the answers we need are always right at our fingertips.”

For its enterprise system, RG Transport uses the Access Plus ASP of the Innovative Enterprise Software® (IES®) from Innovative Computing Corporation. RG Transport has just completed the installation of the new interface developed by TCG and Innovative that will enable it to more easily and accurately extract data from its enterprise system and use it to develop accurate costing scenarios.

“We believe the new interface will prove itself to be beneficial to RG Transport by further enabling our ability to use the data from Innovative to gain the advantage of accurate real-time activity-based costing and analysis that TL/CIS provides,” said Shawn Burgess, Controller for RG Transport.   “All of our experience with TCG has been very good.   They have been very supportive by being receptive to making changes that we need to handle unique aspects of our operation and in training our staff as needed.   Their response is always very good, usually within one day or less.   TCG routinely demonstrates a very high level of commitment that we can count on.”

“The Truckload Cost Information System from TCG provides many of the nation’s leading truckload motor carriers with a highly effective Activity-Based Cost Analysis capability,” stated Ken Manning, president of TCG.   “TL/CIS is gaining a strong presence in the truckload market because its accuracy gives it a high level of credibility with customers.”

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 Ken Manning at (800) 328-9700, or by visiting the TCG web site at www.tcgcis.com.

ABOUT RG TRANSPORT

RG Transport, in business for over 20 years, is a full service dry-van, irregular route, motor carrier.   RG Transport primarily operates outbound out of central Indiana with traffic flow patterns into New England, East Coast, Southern and Midwest markets.   The Company also operates a third party logistics operation that handles over 4,000 truckloads annually.   In addition to delivering Red Gold® tomato products, the Company also delivers products for major customers in the food and construction industries.

Media Contact:
Susan Fall
LaunchIt Public Relations
858-490-1050
susan@launchitpr.com