Upcoming Benchmarking Studies: A Pathway to Trucking Profitability

The trucking industry is poised for a significant transformation as Stephenson & Company launches three new benchmarking studies, aiming to shed light on the key metrics that drive success in the transportation sector. These studies, focusing on LTL, truckload, and small package delivery operations, will compare participating companies to their peers on about 1,000 metrics, helping them better understand what is and is not working in their own operations.

Stephenson & Company's approach is unique, as it does not rely on shipper perceptions of a carrier but rather focuses on profitability and what drives profitability on an operational basis. By analyzing a wide array of data points, including labor costs, length of haul, tonnage, and more, these studies aim to identify the most impactful metrics for trucking companies.

The trucking industry has long struggled with inefficiencies and high operating ratios, with some companies maintaining ratios in the high 80s and even in the 90s. These studies aim to help companies pinpoint areas for improvement, enabling them to drive operating ratios down and profitability up.



One of the key metrics that will be analyzed is cost per mile (CPM), which helps identify areas where costs can be reduced and efficiency improved. By understanding their CPM, companies can work to make their operations more efficient, ultimately driving profitability.

Another crucial aspect of these studies is the focus on driver performance and retention metrics. Driver-related costs represent one of the largest expenses for trucking companies, and monitoring these metrics is essential for maintaining profitability. By analyzing driver performance indicators such as miles per gallon, on-time delivery, and safety scores, as well as driver retention benchmarks such as annual turnover rate, training costs per new driver, and average driver tenure, companies can optimize their driver workforce and reduce costs.

By participating in these roundtables and discussing the upcoming benchmarking studies, industry leaders can collaborate and suggest metrics that they believe are important. This collaborative approach ensures that the studies address the most relevant and impactful metrics for the trucking industry.

As the trucking industry continues to evolve, these benchmarking studies offer a unique opportunity for companies to gain valuable insights into their operations and identify areas for improvement. By focusing on profitability and operational efficiency, trucking companies can drive operating ratios down and profitability up, ultimately enhancing their competitiveness in the market.

In conclusion, Stephenson & Company's upcoming benchmarking studies represent a significant step forward in the trucking industry's quest for profitability. By analyzing key metrics and collaborating with industry leaders, these studies aim to help trucking companies optimize their operations, enhance their competitiveness, and drive long-term success in the transportation sector.