Purolator Freight chooses Transportation Costing Group system

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Transportation Costing Group, providers of Profitability Management Tools and activity-based cost analysis for the transportation industry, has announced that Toronto-based Purolator Freight will begin using its Less Than Truckload Cost Information System (LTL/CIS) to enhance profitability and growth through more effective decision-making and accurate assessments of its operation.

Purolator Freight is the new LTL division of Purolator Courier, the largest courier in Canada handling 275 million packages annually to and from more than 35,000 North American destinations. The freight hauler, which offers LTL service across Canada through a separate network of dedicated facilities and vehicles, is growing quickly, partly by leveraging customer relationships through its parent company.

“The TCG system will be used in daily decision-making in our organization,” says Joe Guimond, vice president and general manager of Purolator Freight. “Knowing our costs is critical to our success. Especially in a startup operation, activity-based costing models like those provided by TCG will be highly decisive in addressing the needs of customers, attracting new business, learning about our growing operation and enhancing our profitability.”

In addition to using TCG’s LTL/CIS solution, Purolator Freight will be utilizing FACTSview, a business intelligence module of the FACTS suite of software from Carrier Logistics, Purolator’s enterprise management system provider. Utilizing information provided by TCG’s Cost Information System, FACTSview is designed to give users the ability to drill down into more than a dozen metrics associated with shipments, lanes, customers, and origin and destination points.

TCG’s ability to tie all activity-based costs to its general ledger is especially important to Purolator Freight. “Having the ability to analyze linehaul, pickup and delivery, overhead, administrative and other costs by shipment, customer, lane, region, sales representative or any other parameter for any time period is instrumental,” Guimond says. “This level of detail allows us to quickly and effectively streamline operations and forces us to better understand our business and our customers’ needs. We have tremendous confidence in the results we anticipate from LTL/CIS.”

“The accuracy and high level of credibility associated with TCG’s advanced activity-based costing and other software has led to its wide acceptance among leading motor carriers,” says Ken Manning, president of Bethesda, Md.-based TCG. “Our CIS solutions are currently the only systems that offer a complete, accurate and fully replicable costed traffic database that ties back to the general ledger. For Purolator Freight, the capabilities provided by integrating LTL/CIS with FACTSview will further enhance this highly effective profitability management tool. We are pleased to be able to count them as a customer.”