Transportation Costing Group (TCG), specialists in Profitability Management Tools and activity-based cost analysis for the transportation industry, has announced that Blenker, Wis.-based deBoer Transportation Inc.
has adopted the company’s Truckload Cost Information System (TL/CIS).
Founded in 1967, deBoer Transportation is a family-owned truckload carrier with a fleet of more than 500 tractors and 1,300 trailers.
“We selected the TCG TL/CIS solution because we believe in the value of activity-based costing versus traditional per mile and revenue per truck measurements,” said Roger A. Placzek, vice president sales & marketing. “We were very impressed with TCG’s ability to let us quickly identify profitable business with existing customers and to effectively cost and price new opportunities. We are also finding that activity-based costing complements an asset-based TL carrier that uses rail connections on longer length hauls.”
With TCG’s Truckload Cost Information System deBoer Transportation has the ability to take data provided by their customers or sales department, merge it with the TL/CIS program, and incorporate that information with their fleet management system, TMW’s TL2000TM. For example, the company’s management reviews monthly reports to obtain a snapshot of business performance. At the same time, Sales and Marketing uses the data to identify non-profitable shipments and lanes, and work to improve them, while also maximizing profitable lanes by allocating additional resources.
“Since all the data is reconciled with our general ledger it gives our financial managers a very high degree of confidence in the data,” continued Placzek “This is a key advantage of the TL/CIS and was an important factor in selecting the product.”