The constant battle to find the best methods to increase truckload carrier revenue consistently leaves managers scratching their heads and looking for answers. This struggle can finally come to an end through the use of modern analytics and data management. Such applications of freight technology allow carriers to improve their systems across the board, improving profit margins, reducing load times, streamline shipping, and many more benefits. But it always helps to have a few steps to success.
One of the significant issues for any truck driver appears in the form of empty miles. Empty miles account for a considerable loss of revenue and have a damaging effect on the economy. Using analytics and data-driven tools, carriers can find more loads and avoid consequential expenditures, such as empty miles.
Carriers should also utilize analytics to plan routes to avoid foreseeable interruptions and maximize their profitability. Route interruptions frequently result in empty miles that cost carriers significant sums that should be avoidable. CCJ Digital explains how the implementation of a cost intelligence system (CIS) greatly benefits carriers and assists in avoiding these unneeded costs: “CIS, which can be used for truckload and less-than-truckload carriers, uses joint cost accounting to examine how expenses impact the truck’s entire round trip, not just one leg of the journey. Conversely, revenue for the round trip is measured against the joint cost to help determine profitability.” Such a tool provides much-needed assistance with route planning to significantly improve carrier revenue and efficiency.
Market dynamics are essential for consideration of whether to accept or reject a tendered load for any carrier. Part of this requires an understanding of which shipping trends are being utilized by other carriers. In a changing market, carriers will find that these trends are incredibly beneficial in ensuring that they are up to date with which direction the market is moving and will assist with carrier revenue.
Carrier revenue benchmarking metrics make for a great reference tool for any carrier. By utilizing these benchmarking metrics, carriers find themselves better equipped to recognize which strategies will best benefit their business. Freight key performance indicators allow carriers to assess their business performance better and assist with managing their network.
Carriers will find that knowing when to outsource loads to regional and local carrier networks improves their carrier revenue. Knowing when to outsource loads has proven to enhance operational trucking costs and subsequently boost carrier revenue. This information is incredibly valuable for any carrier.
Another tool that boosts carrier revenue is using freight analytics to demonstrate why pricing changes. Analytics provide carriers with a significant amount of data that assists with a myriad of business practices, including establishing the case for price changes. The knowledge gained from analyzing the freight pricing data is invaluable for any carrier and should certainly be utilized.
While it may seem almost too obvious, one of the things that can be done to increase carrier revenue is ensuring that loads are delivered on time and without chargebacks. This simple tip can make all the difference when attempting to avoid unnecessary costs.
Carrier profitability should always be a top concern, even during high demand periods like 2020. However, knowing how to increase truckload carrier profitability per load is essential to creating long-term strategic value. Carriers should start by applying data to stay strategic. And part of that comes from capturing the most accurate and insightful data resources. When seeking to increase carrier revenue, be sure to partner with the right freight forecasting platform. Request a FreightWaves SONAR demo today by clicking the button below.