If you’re like a lot of brokers we talk to, this year’s record-setting freight volumes and decrease in capacity has kept you scrambling, leaving little time for anything but finding trucks and dispatching them.
If you’re not using a Transportation Management System (TMS) you may not be able to take full advantage of this year’s bounty. The right TMS can significantly increase your efficiency, allowing you to move more trucks without adding staff (see my blog post Technology vs. Revenue Producer: Who Wins?).
Here are three reasons why this the perfect time of year to take the time to evaluate and purchase a TMS:
1. Upgrading systems and software during the winter downtime can set you up for a big payoff next year.
For the trucking industry, the Christmas rush is now. But soon, we’ll hit the normal holiday slowdown before things heat back up again. This temporary lull gives you time to make a software transition and train your staff.
Remember the 2014 polar vortex, when freight volumes skyrocketed during normally slow winter months, and you had to turn down loads? A TMS can help you move more loads, so you can capitalize this winter if a similar situation occurs.
2. Spending budget left over from a banner year on a productivity tool will make next year even better.
Many companies can predict in October how their year is going to end. If your results look good, you may want to invest in technology that will lower your taxes and boost your profitability not just next year, but for years to come.
3. Getting full depreciation on capital equipment will help offset taxes come April 15, 2015.
To encourage spending on capital equipment, the IRS offers full depreciation on software purchased in 2014 under Section 169. That means you can depreciate the entire cost of a new TMS on your 2014 taxes. Talk to your tax advisor to see if this is a good option for you.
A DAT Keypoint representative can help you make a plan for choosing a TMS and identify a system that’s right for your business now and scales for future business. We can suggest systems for you to compare, and give you a demo of our offerings. After that, it should take only a few hours to pull in the top two or three TMS candidates and figure out which is the best match for your business.
To learn more about DAT Keypoint Broker TMS, send us an email or call us at 800-728-7305.
Categories: Best Practices and Benchmarks