Rising operational costs, driver shortages, and global supply chain fluctuations are just a few of the factors that threaten trucking company profit margins. The good news is that even in a down market, you can improve margins and boost profitability.
This post covers challenges in understanding profitability, how to improve your profit margin, and real-life success stories from carriers who use technology to boost profitability.
Challenges in Analyzing Profitability
The average trucking company profit margin is roughly 2% to 8%, which creates immense pressure for carriers to reduce costs and inefficiencies. But many carriers operate without a clear understanding of which loads, customers, or lanes are profitable. Without quality data — and a way to analyze it — fleet owners might not know whether their profit margin is healthy or needs help.
When you’re using multiple systems, software, and spreadsheets to manage fleet operations, there’s no way to “connect the dots” — the data is there, but it’s not useful or meaningful. To truly understand your profitability, you need a transportation management system (TMS).
How a TMS Improves Carrier Profit Margins
Here are just some of the objectives you can accomplish with a TMS:
Consolidate Technology
A TMS enables real-time profitability analysis by integrating dispatch, accounting, and fleet data into a centralized dashboard. With this level of insight, companies can stop taking loss-making loads, negotiate better rates, and adjust driver assignments to improve margin-per-mile.
Automate Processes
Manual processes limit scalability and increase labor costs. With a TMS, you can automate core functions like load creation and optimization, payroll, and fleet tracking.
Improve Accounting
Many carrier accounting teams still rely on Excel or QuickBooks, neither of which is trucking-specific accounting software. A TMS for Carriers helps you see profitability by load and includes accounting features that:
- Accurately base cost predictions on real-time fleet data
- Support GAAP compliance
- Calculate and automate IFTA payments
- Monitor fuel costs
- Automatically include surcharges, freight weights, and other details in invoices
- Prevent errors and rebills due to clerical errors
Some TMS software offers additional features that minimize invoice processing time and increase cash flow. For example, PCS TMS includes a mobile app that captures proof of delivery and syncs with accounting, so invoices go out immediately and carriers reduce DSO by up to eight days.
Maintain Fleets to Keep Trucks Rolling
Due to trade volatility, the cost of new commercial tractors could increase by $35,000 in 2025. To avoid the cost of new tractors, fleet managers need to keep every truck in peak condition.
PCS TMS for Carriers tracks every data point for every vehicle, alerting you in advance of required maintenance needs and projecting the cost of parts and repairs based on vehicle age and mileage. PCS also maintains cloud-based, audit-ready maintenance records you can access from anywhere.
Real-World Impact: PCS in Action
Voyager Express, an intermodal carrier, was struggling with inefficient, manual processes before partnering with PCS to support their goals for business growth.
With PCS, Voyager Express:
- Improved on-time pick-up and delivery rates to 98%, thanks to PCS fleet telematics
- Reduced DOS to two to three days
- Reduced paperwork and admin tasks by using the mobile app for 75 drivers
- Grew its fleet from 10 to 200+ trucks
Other PCS customer success stories include:
- Phoenix Cargo’s improved revenue per mile and lower driver downtime
- Bluegrass Transport’s 96-97% OTD
- RDX LLC’s 8- to 12-day reduction in DSO
Create Your Success Story With PCS
In a tough market, focusing solely on top-line revenue is a risky strategy. True resilience and growth come from understanding and optimizing your profit drivers. PCS can help you do that.
See how PCS helps carriers improve end-to-end operational visibility, eliminate manual processes, and boost profitability. Request your personalized demo today!
