5 Ways to Cut Trucking Costs

Trucking companies run on razor thin margins. Controlling costs is imperative to remain competitive.  

Technology is the key to cutting costs. Using technology to improve operations will lead to greater efficiencies and productivity. Here a few examples of how you can use technology to cut trucking costs and increase productivity in your trucking company.


SaaS cloud solution

# 1 – Implement Cloud-Based TMS

If you are using a legacy (premise-based) TMS solution, you are missing out on the benefits of new technology. Implementing a cloud-based TMS will provide 24x7x365 access to your information from anywhere you can access the internet. Cloud-based software is easier to maintain and has an overall lower total cost of ownership. Additionally, cloud-based TMS solutions offer API’s, which makes it easier and less costly to integrate with other software.

# 2 – Centralize Dispatch

Cloud-based TMS means all of your dispatchers have access to all orders and loads. They can easily share information about assigned and unassigned loads. This information will help the dispatch work smarter, reducing unloaded miles, improving driver productivity, and increasing equipment efficiency.

# 3 – Driver Mobile App

Implementing a mobile application for your drivers will dramatically increase their productivity.  They will automatically receive all loads assigned to them. They message directly with your dispatcher, reduce the number of calls and time spent on those calls. Drivers can see a full history of their loads and request payment directly through the app.  

# 4 – Automate Processes

You can gain efficiency in your back office by automating as many of your manual processes as possible. Setting up order templates can minimize manual entry of data. Using AI, you can have your TMS solution make driver assignments and dispatch loads. Once deliveries are confirmed by your drivers, invoice can be generated and emailed directly to your customers.

 # 5 –  Measure & Manage Your Performance

Your TMS solution creates a tremendous amount of data that you can leverage to help make sound business decisions. Setting up key performance indicators (KPI’s) and alerts will focus your efforts on what needs attention. Utilizing Business Intelligence (BI) will help you mine your data to spot trends and proactively take control of your based trucking solution

on premise v. SaaS

If you are using an older version of TMS software or an on-premise solution, you will need to upgrade to a SaaS-based (cloud-based) solution in order to take advantage of these technologies. 

What is the difference between an on-premise and a cloud-based solution? With a legacy, on-premise solution, you purchase a software and manage all of the parts to run it. It requires a lot of technical know-how and manpower to do so. On the other end of the spectrum, you can have a cloud-based or SaaS solution that is managed by a vendor, like Magnus. There are also variations in between. Which one is right for you? It’s up to your company’s ability to manage, run and troubleshoot your software solution.  

Want to read more about a SaaS-based TMS? Check out our blog post Creating a Trucking Software Solution

Posted in: TMS

About Vic Tohak

Vic Tohak is a Regional Sales Manager for Magnus Technologies. As a veteran of the software industry, he has spent the past ten years working with trucking and logistics companies in a variety of roles including sales, marketing, project management and implementations. Vic enjoys helping companies of all sizes leverage technology to become more efficient, productive and profitable.  Watching companies improve and thrive is the most rewarding part of his role at Magnus. Vic is based in Hampton Roads, Virginia.