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KSMTA Launches New Tool: Areas of Profit Interactive Map for Trucking Network Profitability

March 22, 2024

KSMTA has introduced a transformative tool, Areas of Profit, within its proprietary FreightMathTM platform. This innovative feature is a response to the trucking industry’s need for a deeper understanding of where and how profits are generated across a carrier’s network. The concept was inspired by KSMTA’s foundational principle that “density builds efficiency, efficiency builds velocity, velocity builds profitability.” Areas of Profit goes beyond traditional tabular data, offering a dynamic visual representation of profitability across geographic regions.

The Innovation Behind Areas of Profit

Adam Smith, KSMTA’s Director of FreightMath Engineering, designed Areas of Profit as an interactive map that reveals the profitability of different parts of a trucking network. By analyzing load volume, geography, customer interactions, and specific lanes, the tool identifies areas that are profitable (displayed in green) and those that are not (marked in red or yellow). This analysis covers more than 220 market areas in North America, aiming to highlight regions of higher incremental margin and expose “mirages of profit” – areas that seem profitable at a glance but, upon closer examination, offer little to no real profit when considered as part of the entire network.

Network Discipline

Network Discipline

How Areas of Profit Works

The tool is straightforward in its functionality but profound in its impact. It allows companies to see at a glance which regions of their network are most efficient and profitable. This insight can guide decisions on route planning, business development focus, and areas requiring improvement. Furthermore, Areas of Profit enables users to track the evolution of their freight network over time providing a dynamic tool for strategic planning.

Network Chaos

Discovering the Islands of Profit in Your Network - Image 2

The Benefits of Areas of Profit

Areas of Profit serves as a crucial tool for KSMTA’s FreightMath engineers to identify actionable solutions for clients, ensuring that the freight network is optimized for profitability. It offers several key benefits.

  • Visualized Profitability: By color-coding regions based on their profitability, Areas of Profit provides an intuitive way to assess the financial health of different parts of the network.
  • Strategic Planning: The tool aids in identifying high-potential areas for business development and regions where operational efficiency can be improved.
  • Dynamic Monitoring: Users can observe changes in their network’s profitability over time, allowing for agile responses to market dynamics.

Empowering Strategic Decision-Making

With the launch of Areas of Profit, FreightMath provides a powerful solution to one of the trucking industry’s perennial challenges – understanding and optimizing the profitability of their operations. By visualizing profit and loss across North America, trucking companies can make informed decisions that drive efficiency, velocity, and, ultimately, profitability. This tool underscores KSMTA’s commitment to leveraging innovative technologies to enhance the strategic capabilities of their clients in the trucking industry.

To learn more or discuss any of the ideas shared above, please contact a KSMTA advisor or complete this form.

Chris Henry Chief Operating Officer, KSM Transport Advisors & KSMTA Canada

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