An Introduction to Cost Modeling
Although many businesses with larger fleets are likely to have financial control systems, rate structures and systems for costing jobs, this is by no means the industry standard. Many trucking firms still price work by relying upon inaccurate or incomplete data to make critical business decisions. Such businesses often find it is not easy for managers and customers to identify where improvements and savings can be made.
A comprehensive cost model not only provides insight into your current business but also can provide the foundation for true Business Intelligence and data mining.
Integrated with your operating and financial systems, a costing model provides the opportunity to drastically improve operational effectiveness and efficiency – ensuring that not only are you “doing things right”, but that you are also “doing the right things” to assure a successful and profitable operation.