TruCost Systems, LLC, Ormond Beach, Fla., has introduced a carrier-costing solution called TruCosting
, software designed as a trip-costing tool for dry van, flatbed and refrigerated carriers.
TruCosting is a PC-based product that enables the user to define the characteristics of a trip, determine the cost for that trip based on the carrier’s own financials, and review the detail for each element of the trip.
TruCost Systems is a joint venture between industry experts, Martin Labbe of Martin Labbe Associates LLC, Duff Swain of Trincon Group LLC and Tom Cox of Thomas S. Cox P.A.
“Activity-based costing is an accounting process that is very common among manufacturers,” said Cox. “The process separates variable and fixed expenses and identifies cost drivers that consume resources and add value. The same process is applicable to a trucking operation.”
According to Cox, moving trucks or creation of revenue causes variable expenses; whereas fixed expenses are driven by departmental expenses, equipment and support personnel. Variable expenses such as fuel, driver mileage pay, parts, tires and tolls are measured by the mile. Fixed expenses such as depreciation, maintenance, operations, marketing and administration are absorbed by assigning a burden rate to each truck on an hourly or daily basis. By tracking all costs, a carrier can measure the effect of time, distance and increased productivity.
“Appropriate choices of trips can allow the carrier to establish lane profitability as well as client profitability,” Martin Labbe explained. “The software allows the carrier to establish separate cost centers, each with its own unique cost profile. These have been tested as terminal locations, as well as carrier divisions, such as company-driver, owner-operator, regional and local operations. A choice between an owner-operator assignment or a company-driver assignment will affect the overall cost of the load and can be readily determined by the software.”
For more information, visit www.trucosting.com.