How to Increase Revenue for Your Trucking Business?
- Avoid Inaccurate Distance Calculations
- Calculate Truck Driving Distance
- Follow Strategies to Boost Your Trucking Revenue
- Learn from Other Trucking Companies
- Use a TMS to Optimize Costs
Transport companies are constantly seeking growth strategies to boost revenue and enhance trucking profitability. Yet, many still rely on car-based route planners like Google Maps for truck distance calculations and tour planning. This approach often leads to underbilling and lost profits because these tools don't account for truck-specific requirements.
By adopting advanced trucking industry solutions like a Transport Management Platform (TMP®), you can overcome these challenges and set your trucking company on a path to increased revenue.
Avoid Inaccurate Distance Calculations
Using car-based route planners can significantly reduce your revenue. Shippers and freight forwarders might calculate the shortest routes using tools designed for cars, not trucks. This mismatch causes several problems:
- Underbilling: Charging clients based on shorter car routes means you're paid less than you should be.
- Inefficient Tour Planning: Inaccurate routes make effective tour planning and delivery scheduling difficult.
- Operational Inefficiency: Incorrect routes can lead to longer travel times and higher fuel costs.
- Profit Risks: Continuous underbilling reduces profit margins and can threaten your company's financial health.
Calculate Truck Driving Distance
Accurate truck distance calculations can significantly boost your revenue. Here's a straightforward example to illustrate this:
- Daily Distance Driven: 400 km
- Charge per Kilometer: €1.25
- Working Days per Month: 20
- Potential Underbilling Due to Inaccurate Calculations: Up to 2%
Note: The 2% deviation is an example. Actual deviations may vary, especially in local transport with complex routes.
How Much Extra Can You Earn per Truck Each Year?
- Calculate Daily Underbilled Distance:
- 2% of 400 km = 8 km underbilled each day.
- Calculate Daily Lost Revenue:
- 8 km × €1.25/km = €10 lost per day.
- Calculate Monthly Lost Revenue:
- €10/day × 20 days = €200 lost per month.
- Calculate Annual Lost Revenue:
- €200/month × 12 months = €2,400 lost per year.
By ensuring accurate billing and eliminating this underbilling, you can earn up to €2,400 more per truck each year. Learn more here
Follow Strategies to Boost Your Trucking Revenue
To counter these issues, consider the following strategies:
1. Calculating Accurate Truck Driving Distances
Use a transportation management system that accounts for truck-specific needs, ensuring that distance calculations are precise and billing is accurate.
2. Optimizing Truck Tour Planning
Efficient tour planning reduces fuel costs and travel time. By considering delivery schedules and truck driving times, you can optimize routes for maximum efficiency.
3. Managing Truck Driving Times
Plan routes that comply with legal driving times and rest periods to ensure safety and avoid fines.
4. Implementing Advanced Trucking Industry Solutions
Adopt a platform like IMPARGO's TMP®, designed specifically for the trucking industry to address these challenges effectively.
5. Booking a TMS Business Consultation
Don't let inaccurate distance calculations and inefficient tour planning hinder your transport company's growth. In your business consultation, we will show you the tools to:
- Increase Revenue
- Improve Profitability
- Optimize Trucking Operations
See How Other Trucking Companies Increase Their Revenue
"I then sent them the link to the truck-compatible route and the screenshot of the route. The client no longer had any further argument. IMPARGO saved my company in such a short time."
— Edis Barakovic Eddy, LE Transport d.o.o.
LE Transport d.o.o., a trucking company, faced challenges with clients disputing bills due to inaccurate distance calculations. By using IMPARGO's TMP®, they:
- Improved their tour planning
- Managed truck driving times effectively
- Provided proof of actual truck routes
This led to:
- Resolving billing disputes
- Significant revenue increases
- Strengthened client relationships
Read the full success story here.
Use a TMS to Optimize Costs
IMPARGO's Transport Management Platform offers a comprehensive solution to enhance your trucking operations:
- Ensure Accurate Billing: Charge clients based on the actual kilometers driven, preventing revenue loss from underbilling.
- Optimize Truck Routes and Tour Planning: Use efficient routes and schedules to reduce fuel costs and travel time.
- Manage Truck Driving Times: Plan routes in compliance with legal requirements, improving safety and reliability.
- Increase Profitability: Avoid inefficiencies that erode profit margins.
- Improve Client Relationships: Build trust through transparent and accurate invoicing.
- Reduce Financial Risks: Protect your company from potential financial issues due to undercharging.
By embracing these strategies and utilizing advanced tools like IMPARGO's TMP®, your trucking company can overcome common challenges, increase revenue, and achieve sustainable growth in the competitive transport industry.
