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Advanced activity-based costing available to motor carriers

BETHESDA, Md. -- Transportation Costing Group announced an agreement with Innovative Computing Corporation that wil...

BETHESDA, Md. — Transportation Costing Group announced an agreement with Innovative Computing Corporation that will provide an interface between the TCG Truckload Cost Information System (TL/CIS) and Innovative’s Enterprise Software (IES).

The new interface is designed to enable truckload motor carriers using the Innovative enterprise system to gain the advantages of accurate, load specific, activity-based costing and profitability analysis.

“Innovative is the premier provider of AS/400-based enterprise systems to the truckload motor carrier industry,” said Ken Manning, president of TCG. “This solution, for all users of Innovative Releases 7 and 8 software, is the result of nearly two years of research and development by both companies. The interface will enable carriers to accurately extract data and use it to develop actual cost information.”

The TL/CIS provides many of the nation’s truckload and less-than-truckload motor carriers with a highly effective activity-based cost and profitability analysis capability that calculates the costs of each and every load in a given period based on all factors, including driver settlements, equipment use, toll costs and fuel expenses

“TL/CIS is the only system available today that provides a complete, accurate and fully replicable costed traffic database that ties back to the general ledger,” said Manning. “Other solutions on the market only provide a range of relative profitability and rough guesses on costs. The accuracy of our system gives it a high level of credibility with customers and financial analysts alike.

TCG’s patented balance adjustment adds the critical component to insure that calculated profitability properly reflects empty miles and the revenue implication of positioning the driver for each leg of each load, whether a multi-stop load or in slip-seat operations. This detailed cost history becomes an effective tool for rating and determining profitability on each prospective load or lane, including backhauls.

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