Trucking companies, like all other for-profit firms, are always on the lookout for cost reduction opportunities.
However, for trucking companies, reducing operational costs is not just a matter of increasing profitability, it’s a matter of survival.
Trucking companies have a very narrow margin for financial errors. Fuel costs fluctuate constantly, repair and maintenance costs are hard to control, and there is always an endless thirst for fleet upgrades. Moreover, shipping costs are becoming extremely competitive, making it difficult for small trucking companies to maintain the bottom line.
All of these factors can quickly drain a trucking company's income.
So what role can transportation management software (TMS) play in the picture?
TMS subscriptions come with a certain price tag, and as a business person, you’d naturally expect some returns. Moreover, the cost of TMS also varies.
At its core, an integrated TMS solution like LoadStop helps you spot potential leakages in the operations that are draining money, keep a solid track of all expenses and capture opportunities for increasing efficiency.
Here is how a transportation management solution saves money on transportation.
Cut Fuel Costs Significantly
Trucking companies spend more on fuel than on any other area of operations. As per statistics, fleet companies waste approximately 6 billion gallons of fuel each year.
Here is how a transportation management solution can reduce your fueling costs.
- Optimized Routing:
An efficient trip is a money-saving trip. A transportation management program can assist you in planning a smooth trip. It allows you to consider the weather, road conditions, construction delays, shortcuts, toll booths, truck parking, etc. A TMS saves you time and money by helping you adjust the route if there are any potential red flags.
- Fuel Purchase Management:
The TMS aids in tracking fuel purchases by enabling you to import all data from your fuel card vendor and map it against the respective truck and driver. In addition to assigning multiple fuel cards, you can track fuel purchase data, and generate insightful fuel purchase reports.
- Fuel Discount Utilization Reports:
The best fuel credit card also offers perks such as free showers, free fuel points, and discounts at truck stops. You can save hundreds of dollars by tracking if your drivers are using fuel cards and associated discounts properly. With advanced reporting, you can measure intricate details such as the number of missed discounts, potential savings, the average rate per gallon, and more.
Increase Driver Productivity
Drivers can play a crucial role in reducing fuel and other operating costs. Integrating transportation management technologies can help you and your drivers.
- Manage Time Wisely:
Ensuring maximum productivity without a plan in place can make your drivers' workdays difficult and stressful. A TMS can help you boost your drivers' productivity by setting attainable goals. Setting daily, weekly, or monthly productivity goals will ensure that your drivers are making the most of their time.
- Improve Drivers’ Working Conditions:
Poor management and communication gaps can negatively impact productivity even for the best-performing drivers. Fleet management software offers channels that address these shortfalls by giving managers a more efficient and accurate way to communicate with their drivers in real-time. This, in turn, boosts driver morale and motivates them to be more productive.
- Track Driver Behavior:
The right transportation management software makes sure all kinds of small details are taken into account, including average speeds, breaking speeds, fuel costs, and idleness. By tracking past performance, you can optimize driving habits and improve efficiency.
- Optimize Driver Scheduling:
Driver optimization is an advanced feature offered by leading transportation management software. A TMS saves you time and money by enabling service administrators and dispatchers to automatically schedule loads and assign them to the most appropriate drivers. Optimized scheduling drives revenue and reduces overtime costs.
Keeping tabs on every vehicle’s maintenance schedule can be tricky business for a fleet manager. Missing out on even one scheduled check or a maintenance round can cost you dearly in the future.
A TMS is the best solution to this problem as it helps you reduce maintenance costs and save money.
- Proactive Maintenance Reminders:
Trucking management software is beneficial as it reminds drivers and management of future checks and evaluations. You can create and store fleet maintenance schedules with trucking management software, as well as send out reminders. This makes it easier for you to organize such activities so that vehicles stay in good condition.
- Increase Fleet Uptime:
Vehicles that don’t receive regular upkeep are always vulnerable to roadside failures — events that cost time, money, and reputation. With transportation management software, you can easily manage and monitor all PM activities and fix the issues before they lead to breakdowns.
- Extended Equipment Life:
In normal operations, your equipment's lifespan may vary by several million miles depending on how often it is inspected and maintained. By extending the life of your fleet, you reduce the need for premature equipment replacement, which saves you thousands of dollars each year.
Reduced Redundant Overheads
Trucking offices are generally crowded and overwhelmed with staff working the phones, replying to emails, and handling fax machines. Most of the time is spent on getting quotes, confirming load acceptance, preparing paperwork, load planning, and calling drivers to locate freight.
An effective TMS system serves as a reliable home base, bringing together all related costs, contracts, drivers options, and other shipping information into one place. It gives trucking companies better insight into where money is being spent (or overspent)-and enables them to find ways to cut costs.
A good TMS also allows you to compare different loads, which facilitates better negotiations. Furthermore, automating manual tasks reduces administrative costs. By automating labor-intensive processes, you can potentially save hundreds of dollars.
Transportation management software can save you money in a lot of ways. Like any other enterprise solution, it helps you make the most out of your available resources. The cost of TMS is nothing compared to the benefits you get.
LoadStop is an advanced fleet management solution that goes beyond the above-mentioned advantages and offers a plethora of other cost-saving opportunities as well.
Book A Demo Today and find out how LoadStop TMS saves you time and money
About the Author: Sara Naveed
Sara Naveed is a creative and digital content writer who uses her creative skills to develop and edit professional web content. Being a writer has always been her dream. She earnestly hopes people appreciate her writing—an asset she deeply covets. Using her 8+ years of working experience, she writes for trucking industry experts who are always looking for better technological solutions to their problems.