Refrigerated Carrier Returns to Profitability
We returned a struggling over-the-road, temperature-controlled motor carrier to profitability through increased productivity by filling empty trucks with drivers, reducing overhead and managing their technology.
They were operating 32 temperature-controlled trucks prior to contacting Trincon Group. They were originally a brokerage company that decided to move into operating their own trucks as well. They used 8 owner-operators and had 24 trucks of their own. But they were in trouble – they were losing money and they weren’t sure why. They were once a very profitable company but as they expanded they started to lose money and they hadn’t been able to bring their business right-side up again.
The Trincon Approach:
Build a cost modeling tool to manage the operations in a profitable way
By understanding their costs operations was able to concentrate on profitable activity and eliminate wasteful activities.
Implement a driver recruiting and retention program to maintain more consistency in staff
One of the best features of this program was a salary based on tenure and experience, and productivity bonuses so drivers could hold themselves accountable to their own success and rewards. This resulted in reduced driver turnover and consistency for the business.
Shed excess equipment and implement a regular maintenance program to lower overhead costs and reduce operational effort
Reducing costs and over the road breakdowns created a more profitable operation and offered the capacity to tend to other areas of the business
Leverage technology and tools more effectively to gain more insights about their business
By learning to use their technology more effectively they counteracted the costs of these tools to deliver more information to make the business increasingly more profitable