SMC³’s Cost Intelligence System is credited with helping improve ODFL’s operating ratio and in turn, boosting its profitability.
Addressing the carrier’s needs for historical profitability, analysis of existing traffic and the development of cost-based rates for new business pricing, LTL CIS is precisely tailored to fit each of the company’s established needs
Applying sophisticated information technology to existing business - Historical based cost analysis for current customers enables ODFL to monitor every aspect of every shipment.
These analyses are based on information from handheld computers used by drivers to record delivery, stop and transit times, as well as on-dock systems that capture freight handling details in company service centers.
The highly sophisticated model that SMC³’s Cost Intelligence System creates uses a six-month cost average projected to generate very accurate profitability predictions. Effectively predicting profitability for new business - Using historical data and information on shipments and delivery requirements provided by new business prospects, LTL CIS applies projected costs in a highly accurate fashion.
This capability enables ODFL to apply costs and set competitive rates for a new business that ensure profitability, especially in an environment of rapidly rising fuel costs.
For its truckload and LTL operations, Davis said that the Cost Intelligence Systems solutions have enabled comprehensive yield management, revenue growth, and profitability analysis capabilities.
“The truckload and LTL Cost Intelligence System solutions have provided accurate, specific cost information for pricing, and for profitability and operational productivity analysis,” he stated. “There is no doubt that CIS solutions are highly effective business management tools for us. They not only help Averitt make pricing decisions; they also provide more specific direction that has led to a more efficient and profitable organization.”
Groendyke Transport soon began using the Truckload Cost Intelligence System, an activity-based costing system from SMC³ for motor carriers moving full loads from shippers to consignees.
The solution develops the cost of moving individual loads, making specific trips, and handling entire customers on a historical or prospective basis.
The Cost Intelligence System, which provides comprehensive insight into the profitability of individual shipments and loads, is backed by the expertise of a company with decades of experience in the industry.
Adding to the strength of this expertise, SMC³ also works to improve the CIS solutions by constantly talking to customers and measuring the trends and challenges in the marketplace.
With its solutions, SMC³ is on the front lines of the supply chain, adapting to changing needs to help LTL and truckload carriers use the latest and greatest tools to analyze costs and streamline their operations.
