ProfitCenter/CIS

ProfitCenter/CIS is a module of the Cost Intelligence System that produces freight terminal profit and loss statements with accurate allocation of revenues based on the standard costs for each shipment handled. Traditional terminal P&L statements have always suffered due to revenue-allocation inequities. This is because the terminal P&L statement relies on a fixed division of revenue between the origin and destination freight terminals, as well as allocations of re-handling (breakbulk), linehaul and other non-terminal expenses.

Since cost incurrence for specific shipments rarely occurs in the same ratio as the revenue split, traditional P&L statements will always distort the measurement of freight terminal performance and profitability. Terminals with more outbound will seemingly perform better than terminals with more inbound. Terminals serving larger areas will perform worse than terminals serving smaller areas.

The ProfitCenter/CIS module makes use of the ability to cost all freight on an ongoing basis. This software creates terminal P&L statements by dividing the revenue on each individual shipment using standard cost as the basis. Thus, shipment by shipment, the revenue allocated to a freight terminal will reflect an appropriate share rather than an arbitrary division.

ProfitCenter/CIS will make revenue allocations as part of the monthly Traffic/CIS processing and produce a terminal P&L statement each month that is a better measure of freight terminal performance than any fixed revenue allocation method could produce.