Transportation Costing Group, providers of activity-based profitability and cost analysis for the transportation industry, announced that Indiana-based Tradewinds is utilizing its Cost Information System. TCG says Tradewinds, a full-service transportation company, has adopted its profitability and cost analysis solution to take full advantage of data on its operation and make more informed decisions that will have a positive impact on profitability.
“To be profitable in our highly competitive market, we need to know what our greatest needs and opportunities for improvement are based on real data, not just hunches or averages,” says Benjamin Cook, president and chief executive officer of Tradewinds. “By using actual costs from our general ledger associated with each load, TCG’s solution lets us analyze profitability, determine best-course actions for existing business and direct sales efforts to the most profitable lanes, loads and customers.”
Still in the implementation stages, Tradewinds says it already has realized cost savings and enhanced profitability with the TCG system; initial data analysis indicated that shifting away from Texas-Midwest lanes and focusing on East Coast-Midwest routes would boost profitability. “That change and the ability to lower our deadhead mileage will result in a vast improvement to our bottom line,” Cook says. “We expect to recoup our initial investment in TCG in six months or less and to easily offset monthly fees with further savings.”
Tradewinds, headquartered north of Indianapolis in Arcadia, Ind., is a privately-owned company specializing in long-haul dry van truckload service east of the Mississippi River, with select service to Western states. Founded in 1997, the carrier has grown to a fleet of more than 150 tractors and more than 240 trailers.
“Our activity-based costing system is designed specifically for motor carriers like Tradewinds that operate in an irregular route environment,” says Jack Jones, vice president of TCG. “By using it to analyze cost data from its general ledger on individual loads, specific lanes and customers on an historical or prospective basis, Tradewinds will be able to make the best possible decisions that impact its profitability.”