Carriers and freight brokerages

A carrier's cost per mile is an average, and averages hide the trucks that lose money.

A carrier doing about $12M a year can usually produce one blended cost per mile, and that single number averages the trucks that earn together with the trucks that do not. QuickBooks will not calculate profit per truck or per lane on its own, so the work gets done in a spreadsheet once a quarter, by which time the rates have already been quoted.

On a 30-truck fleet, ten cents a mile of unexplained cost across 100,000 miles per truck is about $300,000 a year. It is not one big leak. It is dispatch time, deadhead, claims, and maintenance sitting in four places that never meet.

Helps answer: How do we make money?

The questions a carrier cannot answer today

Can’t tell which one is yours? You are not supposed to be able to. That is the point.

What we connect

These are the systems a business like yours already runs on. Nothing here gets replaced. The work is joining what each one knows into one connected picture of how your business works.

  • Your dispatch board or TMS
  • Telematics and hours of service
  • Fuel card statements
  • QuickBooks
  • Driver settlement spreadsheets
  • Maintenance records, wherever they live

Named by what they do rather than by brand, because the brand matters less than whether the thing is connected to anything else.

What a carrier asks before they start

Can QuickBooks calculate cost per mile by truck?

Not on its own. It can hold the costs, but it does not know your miles by unit, your settlements, or your fuel by truck unless someone assembles that by hand in a spreadsheet. That is the work that goes away when the systems are connected.

Do we have to leave our TMS?

No. The TMS usually holds the operational truth and the accounting system holds the financial truth. The problem is that they do not talk, not that either one is wrong.

We are a brokerage, not an asset carrier. Does this still apply?

Yes, though the question changes. For a brokerage the leak is usually margin per load and the office hours spent per load, rather than cost per mile.

How current would the numbers be?

The goal is that they keep themselves current rather than being rebuilt monthly. How close to live depends on what your systems will hand over and how often.

Who owns the data?

You do. The connected picture and everything in it belong to your business, with no licence to buy and no long contract.

Everything we have written for carriers and freight brokerages

9 articles, newest first.

The same problem in other trades

The systems change. The gap between what the field knows and what the books know does not.

Pick the three leaks you recognize. We’ll tell you what they typically cost a business your size, in dollars.

Pick the three you recognize. We’ll come back with what they cost, in dollars. No sales call, no sequence.

Would rather just talk? Text us, hello@ondework.com, or the contact form.