How TransForm Solution’s cost effective back office support system helped a Canada based trucking company improve customer service

Results at a glance

Benefits

Reduce fuel costs due to accurate trip planning

Data Entry hours

20% reduction

Support

24/7 coverage

Client: A medium sized trucking company offering personalized and high quality services to businesses in Canada. With a fleet of 50 trucks and 150 chassis along with a secured storage facility, it operates near critical rail terminals and ports.

Background

According to the National Association of Small Trucking Companies (NASTC), only 15% of newly formed trucking companies will make it to their second year of operation. This is due in large part to truckers’ costs rising as much as 5% to 7% per mile, and the issues of driver shortage and retention (which contribute an additional 5% cost in incentive pay packages and bonuses). The report declares that the small company failure rate will continue to rise because fleet costs are increasing twice as fast as revenues. According to Avondale Partners, trucking companies fail due to two primary reasons: poor information management and lack of a crucial support team.

Challenges

No one knows this better than our progressive Canada based client, who realized early that adopting TransForm’s cost effective and efficient back office solutions was crucial to their success. The strategy of this company is to streamline all critical functions and improve communications so as to make timely deliveries and have a competitive pricing structure. The company’s goal in the next year is to: Expand fleet of trucks. The company is currently working to expand its existing fleet of 50 trucks. This will enable them to increase the number of customers they can serve. Quality service. Provide customers with courteous, prompt, and dependable service. Competitive rates. Provide competitive rates for customers.

Solutions

More trucks means more drivers and more work to manage them. Beyond six trucks, in general, companies will need to hire back office staff or simply stop growing. The back office manages all the carrier’s critical logistics processes namely the ordering process (initial order through invoicing) and transportation planning.

To help the client tackle this back office challenge, TransForm set up an experienced data services and dispatch service team that functions 24/7 and provided functions like:

Logistic Coordination

Receive orders by multiple channels (fax, email) and enter purchase orders in SAP
Coordinate with drivers to have loads picked and shipped.
Coordinate with rail terminals to receive containers of imported product
Enter data in SAP System
Plan and monitor trips
Plan and monitor transit time

Digital Marketing Services

A/R: send invoices to customers, credit collection from customers.
Generate monthly reports for the CFO covering A/P, A/R and sales.
Reply to customer inquiries with quotes and order status.

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Results

For our client, partnering with TransForm has more than helped them realize its goals and vision. With our back office services, our client has been able to improve on-time pickups and deliveries, ensure careful handling of freight, maintain their fleet efficiently, and accurately document all operations so more focus could be directed toward maintaining excellent customer service and increasing productivity.

The client achieved:

Increased customer satisfaction with more accurate and timely information
Reduced fuel costs due to accurate trip planning and better management of idle time.
Increased productivity and reduced administrative costs
20% reduction in the number of data entry hours.
Increased accuracy of data, logs and costs
98.2% of all shipments arrive on schedule

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