Freight Due Diligence
Unlock the Power of Data-Driven Optimization
KSM Transport Advisors’ focus is to bring “precision trucking” to an imprecise industry. That’s why we’ve developed an innovative solution to help optimize your freight selection, boost margins, and streamline your business for maximum profitability.
Imagine being able to harness the power of data to reimagine your freight network for maximized profitability. With KSMTA’s Quality of Freight™ (QoF) service, that vision becomes a reality. Using advanced order and dispatch-level datasets, we apply a state-of-the-art mixed integer optimization model. This model considers custom time intervals, constraints, and target solutions allowing us to identify untapped opportunities for margin improvement within your trucking company.
Tailored Solutions for Your Success
Our approach is as unique as your business. The QoF service offers a range of optimization scenarios customized to your specific needs:
In this scenario, we establish a minimum margin threshold that is not just based on your recent performance but also takes the market dynamics into account. Typically set at 5-10% above your current gross margin levels, the MMT scenario provides a clear path to maximizing profitability. The output of this study tells you exactly how many trucks are required to meet the margin threshold, allowing you to right-size your operation for more profitable freight. Plus, it helps you identify opportunities to utilize your non-asset operation for incremental margin on loads that don’t meet the threshold.
Many high-performing asset-based trucking companies have established brokerage operations to leverage strong customer relationships and opportunities which may not appropriately fit the asset network. With this scenario, KSMTA will let the math isolate the most optimal solution for a mix of asset and brokerage freight – with a goal of maximizing margin for the entire enterprise. Our sophisticated mathematical process uncovers hidden opportunities between these two operations, delivering incremental margin that might have otherwise gone unnoticed.
Looking to acquire another trucking company? Curious as to how your disparate networks would mesh? QoF can answer this question before you make a significant investment. Using dispatch-level data from each entity, the QoF process can overlay the networks to identify the power lanes and gradual margin opportunities of the combined operation while also rejecting loads that actually reduce margin. Strategic and operational buyers alike have trusted KSMTA for over a decade using this unique trucking-specific diligence model.
Why Choose a QoF Engagement?
- Precision Optimization: Our linear optimization model leaves no stone unturned, ensuring you make the most profitable decisions.
- Tailored Scenarios: We understand your unique business needs and offer scenarios that are customized to your specific situation.
- Market-Driven: Our MMT scenario accounts for market conditions, ensuring your goals are realistic and achievable.
- Hidden Opportunities: Our asset and broker optimization scenario uncovers untapped sources of margin within your operation.
- Test Before You Invest: Test the synergies between your freight network and that of a target acquisitions. Use math instead of emotion to guide your acquisition process.
- Stay Competitive: In today’s volatile freight market, the insights gained from a QoF can help you stay ahead of the competition.
It’s time to take control of your trucking company’s profitability. Contact us today to schedule your QoF study and unlock the potential for higher margins and greater success.