Post calculation transport (Nacatrans)
Through this project, in conjunction with the road haulage sector, VIL aims to design a costing model that reflects the actual profitability of every transport order carried out.
status: Closed |
theme:
Digital transformation |
type:
Regional
WORKING OUT THE ACTUAL RESULT OF A TRANSPORT ORDER
Many hauliers have already stated in the past that the sector needs a solution for working out the actual result of a transport order in a cost efficient way. Obviously, the company’s results are published periodically, but there is often a lack of details revealing which activities/orders/customers are profitable and which are loss-making.
Hauliers often possess a lot of information, but this is spread over several systems: orders are processed and planned in the Transport Management System (TMS), information about the actual journey is recorded on the truck’s onboard computer and billing takes place from the financial software package, which may or may not be linked to the TMS.
Through the NACATRANS (subsequent costing transport) project, VIL aims to provide a costing model for companies offering domestic haulage services by groupage for payment which sets the real cost of an order against the income. This information helps the company determine the correct pricing strategy and terms and conditions.
COSTING MODEL
The costing model to be designed will apply the basic principles of activity-based costing. Direct costs include the driver’s wages and fuel costs (and shortly also kilometre-based charges). Indirect costs are then assigned to activities (transport orders) based on allocation formulae to be defined. By comparing the total cost per order arrived at in this way with the contractually agreed or quoted rates, the actual income/loss for an order can be worked out and adjusted.
This information enables the haulier to negotiate about charges and terms and conditions in full knowledge of the facts.
Costing models for prior costing already exist, but there are no models reflecting the actual result of a fulfilled transport order available on the market. Besides, this is a highly complex matter. How do you calculate what proportion of the kilometre-based charge, tolls, time lost queuing, diversions, etc. is assigned to which transport order?
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