PDP Trucking case study

Background

Fleet optimization software is becoming essential for trucking companies looking to maximize revenue and minimize operational inefficiencies. PDP Trucking, a national carrier with 93 trucks, implemented a fleet optimization solution through Class 8 with a goal of improving decision-making and operational efficiency. This case study explores how the software transformed PDP Trucking’s revenue per load, reduced empty miles, and optimized overall performance, offering valuable insights for other trucking companies.

Industry

Self-Dispatched Trucking Services

Employees

100

Location

USA

use cases

How to increase software revenue.

Challenges Faced by PDP Trucking

Before adopting fleet optimization software, PDP Trucking faced several challenges:

1

Market Pressures

Fluctuating market conditions, especially since late 2022, pushed the company to reconsider its operational strategies to remain competitive

2

Operational Inefficiencies

Independent contractors booked loads without insight into market surges, leading to mediocre loads and long-distance routes. This often resulted in inefficiencies and leaving money on the table, as more profitable opportunities were missed

3

Complex Load Management

PDP Trucking's load planning was divided among multiple regional planners, resulting in inefficiencies and poor coordination across regions.

These challenges created a pressing need for a solution that could automate decision-making, optimize load allocations, and reduce empty miles.

Solution Implementation

PDP Trucking partnered with Class 8 to implement their fleet optimization software. The focus was on automating decision-making processes and optimizing the network. The software uses AI and advanced algorithms to automatically plan loads and dispatch trucks, optimizing the entire transportation process from start to finish. Key areas of implementation:

Key areas of implementation:

1

Automation of Load Planning

The software replaced manual load planning, automating decisions about where and when to send trucks based on real-time data.

2

Revenue Per Truck

By optimizing load allocation, the company experienced a significant boost in efficiency, resulting in revenue per truck increasing by over 20%, while also maximizing resource utilization and profitability.

3

Reduction of Empty Miles

The software significantly reduced the number of empty miles driven by ensuring trucks were always matched with the most profitable loads.

Class8 is often higher than the posted rate, but it's always correct - our revenue has grown just by using their suggestions.

Peter

CEO PDP Trucking

Results Achieved

The results of implementing Class 8 fleet optimization software were remarkable:

1

Revenue Growth

PDP Trucking experienced a 20% increase in revenue per truck per week. This improvement was primarily driven by better load allocation, ensuring that trucks were always paired with the most profitable routes.

2

Higher Automation Levels

PDP Trucking achieved 80% decision automation, significantly reducing the time spent on manual load planning. A single team was able to execute between 700 and 900 decisions per week with minimal human intervention.

3

Operational Streamlining

PDP Trucking reduced the number of regional planners from six to one, with only two swing shift planners handling retooling operations when necessary. This streamlining improved efficiency and allowed the company to reallocate resources where they were most needed.

Key Learnings and Adjustments

The results of implementing Class 8 fleet optimization software were remarkable:

1

Collaboration and Flexibility

The implementation process was challenging. In the initial phase, PDP Trucking encountered issues where independent contractors were not familiar with the technology, limiting the software’s optimization capabilities. Human Intervention for Edge Cases: While the software handled most decisions, PDP Trucking assigned a dedicated team member, Caleb, to handle quality assurance and execution for more complex decisions. This ensured that edge cases—where human judgment was needed—were handled effectively without slowing down operations.

Unexpected Benefits

One surprising benefit was the ability to test and evaluate potential new contracts during the bid season. PDP Trucking used fleet optimization software to run multiple market scenarios in real-time and predict the profitability of new customer loads before committing to them. This capability allowed the company to make informed decisions and avoid taking on contracts that would have led to inefficiencies or lower profitability.

Conclusion

Fleet optimization software has transformed PDP Trucking, driving up revenue per load, cutting empty miles, and streamlining operations, all while unlocking significant savings in staffing costs. The partnership with Class 8 showcases how trucking companies can unlock new levels of efficiency by optimizing their dispatch teams. While lead dispatchers are traditionally among the highest-paid roles, Dispatch AI reduces the reliance on specialized expertise, enabling companies to streamline their teams without sacrificing control over load planning. Dispatchers can be quickly upskilled to use the system, increasing efficiency with less complexity.

Additionally, the ability to scale with smaller teams means companies can manage larger fleets without the need for proportional increases in staffing. This enables more efficient fleet management and supports growth without adding to overhead costs.

For trucking companies looking to boost profitability and streamline operations, investing in fleet optimization technology is no longer optional—it’s a strategic advantage that drives long-term success in a competitive market.

Scaling Revenue while Expanding Margin

Revenue Growth:

Higher Automation Levels:

Operational Streamlining: