The Transportation Profitability Group was founded in 1986 by Robert Sullivan.
TPG is a software development company and markets TPG’s premier software package the TPG Capacity Based Costing System to LTL carriers. The TPG system is the only costing system specifically developed for the LTL industry that has the capability to measure capacity and capacity utilization in pickup and delivery, dock, and linehaul operations. The TPG system is the only costing system that factors in the value of unused capacity to the carrier in the costing / pricing process. This makes more market share available to the carrier.
Most carriers cost themselves out of market share because traditional cost based and activity based systems cannot measure capacity and capacity utilization. They assume the carrier is operating at 100% capacity and nothing could be further from the truth. The capability to measure capacity and capacity utilization makes the TPG system unique and is a competitive advantage for the LTL carrier.
The market is extremely competitive and with the uncertainty of the cost of fuel, it has never been more important for the LTL carrier know their true cost and true profitability of a customer’s shipments. Because the TPG costing system removes operating inefficiencies and non-related cost from the costing process the carrier can make costing and pricing decisions with confidence.
The carrier runs the risk of leaving business they should be handling out in the market because they over-cost it.
The TPG team is constantly looking for ways to provide carriers with tools to help leadership better understand their costs and how profitability changes with a change in volume and output.
TPG was designed not to just cost shipments and customers for the carrier, but to provide leadership with a complete solution to improve both profitability and productivity.
The TPG IT department is always ready to assist their clients with custom solutions for each carrier because each carrier is different. Just ask our clients. They will confirm that.
Founder Robert Sullivan is so passionate about helping leaders better understand their costs and how to leverage that knowledge to build a competitive advantage over the competition he authored two books that are really courses in profitability and productivity. He authored his first book in 2004; “The Formula…Building Competitive Advantage” and created a workbook to accompany the book. In 2016 Robert’s second book, “The LTL Carrier’s Profitability Blueprint” was released. Being the old coach he is and keeping with tradition he also created an accompanying workbook for this book as well.