deBoer Transportation Chooses Transportation Costing Group
The TL/CIS activity-cased costing solution provides a highly effective profitability analysis capability
ROCKVILLE, MD. – May 23, 2006 – Transportation Costing Group (TCG™), specialists in Profitability Management Tools™ and activity-based cost analysis for the transportation industry, today announced that Blenker, WI-based deBoer Transportation, Inc. has adopted the company’s Truckload Cost Information System™ (TL/CIS®). Founded in 1967, deBoer Transportation is a family-owned truckload carrier with a fleet of over 500 tractors and 1,300 trailers.
“We selected the TCG TL/CIS solution because we believe in the value of activity-based costing versus traditional per mile and revenue per truck measurements,” said Roger A. Placzek, vice president sales & marketing. “We were very impressed with TCG’s ability to let us quickly identify profitable business with existing customers and to effectively cost and price new opportunities. We are also finding that activity-based costing complements an asset-based TL carrier that uses rail connections on longer length hauls.”
With TCG’s Truckload Cost Information System deBoer Transportation has the ability to take data provided by their customers or sales department, merge it with the TL/CIS program, and incorporate that information with their fleet management system, TMW’s TL2000™. For example, the company’s management reviews monthly reports to obtain a snapshot of business performance. At the same time, Sales and Marketing uses the data to identify non-profitable shipments and lanes, and work to improve them, while also maximizing profitable lanes by allocating additional resources.
“Since all the data is reconciled with our general ledger it gives our financial managers a very high degree of confidence in the data,” continued Placzek “This is a key advantage of the TL/CIS and was an important factor in selecting the product.”
“General ledger reconciliation not only gives DeBoer management a high degree of confidence in the data,” stated Ken Manning, TCG president, “it gives them a high degree of credibility with their customers. And that’s important.”
Equally important to deBoer in its decision to adopt TL/CIS was that TCG was able to integrate the program to work with the enterprise system already in place at the company.
“Integration of the script that TCG provided to allow the TL/CIS to run with our existing fleet management system went very smoothly,” Placzek stated. “Only a few minor adjustments to meet our system requirements were made, installation of the TL/CIS software was quick and it was up in running within a week’s time. The support that TCG has provided has been excellent from day one.”
Today, Placzek concluded, deBoer Transportation is continuing to learn about all the benefits the TCG TL/CIS program has to offer. “We are driven by profits,” he said, “not miles or revenue, and we’re very confident that TCG will help lower our Operating Ratio, which means a faster ROI and more profitability.”
Transportation Costing Group is the provider of the most widely used suite of profitability management tools and Activity-Based Costing models to the motor carrier industry. TCG provides models tailored to specific carrier operations. Information on services offered by TCG can be obtained by contacting (800) 328-9700 or firstname.lastname@example.org. For general product information please visit www.tcgcis.com
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