Transportation Costing Group, Bethesda, Md., a provider of activity-based cost analysis and customer profitability management systems, has announced that RG Transport has adopted the TCG’s Truckload Cost Information System.

The system provides Activity-Based Cost analysis capability and 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 RG Transport’s Dick DeBoer. “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.”
The 130-tractor, dry-freight truckload carrier mainly serves customers east of the Mississippi, carrying loads from production facilities to distribution warehouses. The company has a third-party logistics operation that serves as a freight brokerage to match its customers’ loads with other carriers.
“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,” DeBoer said.
One capability of 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. Now, he said, the answers are at their fingertips.
RG Transport uses the Access Plus ASP of the Innovative Enterprise Software from Innovative Computing Corp. 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.
Transportation Costing Group provides models tailored to specific carrier operations. For information on TCG activity-based costing models and services call Ken Manning at 800-328-9700, or visit www.tcgcis.com.