TCG, an SMC3 company and providers of activity-based costing and profitability management tools for truckload and less-than-truckload motor carriers, announced that Kottke Trucking is reporting an increase in revenue per mile of 10.5 percent by using its Cost Information System to make better decisions.
“Using TCG’s activity-based costing and profitability management software our revenue per mile has increased by 10.5% in just 18 months,” said Kyle Kottke, general manager at Kottke Trucking. “With TCG for our analytical needs we are able to make more informed decisions on freight we should haul, freight we shouldn’t accept and pricing adjustments.”
“Drilling down in the TCG software, we are able to analyze profitability by state, lane, load, customer and origin-destination pairs,” Kottke continued. “As a result, we have reorganized some freight lanes and focused on operations in eight specific metropolitan locations, and we are able to provide customers with justification for rate changes. TCG shows us where we can be the most profitable. That’s almost impossible without the software’s analytics capabilities.”
Kottke Trucking, based in Buffalo Lake, Minnesota, is a provider of dry freight, refrigerated and dedicated services. The motor carrier operates 100 tractor-trailers, primarily in the Midwest, mid-Atlantic, South, Southeastern and Southwestern U.S., as well as to west and east coast states on a dedicated contract basis.
The carrier began working with TCG in the fall of 2014 and fully implemented the company’s activity-based costing and profitability management software for truckload operations in January 2015. Today, the combination of TCG for analytics and the carrier’s PowerPro Transportation Software enterprise management system, which handles all dispatch, operations, financial, mobile communications and equipment and maintenance needs, is integrating data for analysis on 100 combinations hauling approximately 1,200 loads per month.
“Using the analytical capabilities of the TCG solution in conjunction with its enterprise management system, Kottke Trucking now has the knowledge it needs to make effective decisions about lanes, loads and customers in different regions and markets, and about where to focus on hauling freight that generates the highest margins,” said Jack Jones, vice president at TCG. “We are pleased they have chosen to use our software and are already realizing an improvement in revenue per mile.”