Top 5 Ways a TMS Reduces Cost-Per-Mile in Trucking

To drive success in the trucking industry, it is essential to keep costs under control wherever possible to improve profit margins. Your cost-per-mile as a trucking and freight company is a Key Performance Indicator (KPI) that can help you better understand and analyze the costs of your business. Technology — like a Transportation Management System (TMS) — can be a valuable tool to reduce your cost-per-mile. We are here to help you do exactly that with our list of the Top 5 Ways a TMS Reduces Cost-Per-Mile in Trucking.

How a TMS Can Reduce Cost-Per-Mile

Cost-per-mile is a critical metric in trucking that is calculated by dividing total operational expenses by the total miles driven. Key operational expenses that influence this metric include fuel expenses, maintenance costs, labor costs, and asset utilization. Modern technology like a Transportation Management System provides the tools and capabilities that you need to tackle each of these areas and drive down your overall cost-per-mile.

1. Better Route Planning to Reduce Fuel Costs

A TMS with advanced route optimization and mileage capabilities, including third-party integrations like PC*Miler® and ProMiles®, helps you plan the most efficient routes by examining factors like distance, traffic, road conditions, and fuel costs. This functionality improves mileage and fuel economy, which has the potential to reduce fuel costs by an estimated 5% to 15% each year, significantly reducing one of your biggest expenses.

2. Maintenance Reminders to Prevent Downtime

Regular preventative maintenance is key to keeping your trucks on the road and avoiding costly breakdowns, which can cost between $300 and $1,000 for each day a truck is down. A TMS can schedule automated maintenance reminders, ensuring timely service and reduced downtime that impacts your bottom line. Transportation Management Systems paired with ELD capabilities and additional solutions can provide maintenance reminders that help companies avoid downtime and improve safety.

3. LTL/FTL Load Management Improves Asset Utilization

Minimizing empty miles is vital in maximizing the use of your trucks and equipment and reducing your cost-per-mile. Empty miles can cost a trucking company up to $1.59 per mile, so it is important to optimize loads and reduce the number of empty miles when and where it is possible. A Transportation Management System with strong LTL/FTL load management capabilities helps you optimize loads, consolidate shipments, and minimize empty miles, improving asset utilization and driving down costs. 

4. Improved Route Planning Prevents Delays

Delays are a problem for freight companies. Not only do delays disrupt schedules but they have a direct impact on your bottom line, with estimated costs ranging from $25 to $200 per hour depending on the cargo and the length of the delay. A TMS platform with real-time tracking and route optimization helps you avoid these costly setbacks by proactively identifying and navigating around traffic congestion, road closures, or other unforeseen circumstances. This keeps your trucks moving, your deliveries on schedule, your cost-per-mile under control, and improves customer satisfaction.

5. Improved Communication and Coordination

In the trucking industry, efficient communication between dispatchers, drivers, and customers is essential for smooth operations and will impact your operational costs. A TMS and mobile driver apps like TransPlus Connect facilitate seamless communication and reduce miscommunications and delays that can negatively impact your cost-per-mile. By streamlining communication and fostering coordination, a TMS minimizes downtime, optimizes routes, and enhances overall operational efficiency, contributing to a reduced cost-per-mile for trucking companies.

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READ MORE: Top 6 Trends Facing the Trucking Industry in 2025

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A TMS is a powerful tool for reducing cost-per-mile and improving your profits in the trucking industry. With the capabilities to optimize routes, streamline maintenance, maximize use of your assets, and enhance communication, a TMS helps you control expenses and gain a competitive edge. We hope that this list of Top 5 Ways a TMS Reduces Cost-Per-Mile in Trucking has helped point you in the right direction.

Contact TransPlus today to learn more about our TransPlus TMS capabilities and how we can help you drive down your cost-per-mile!

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