Grojean: Reefers Facing Day of Reckoning
BANFF, Alberta — William Grojean says refrigerated carriers are heading for a day of reckoning because of difficulties in getting rate increases and paying drivers enough.
Activity-based costing involves identifying indirect costs, such as billing, recruitment and sales, and then assigning them to a specific division of the company and, if possible, to a specific customer. Under a more traditional approach, indirect costs are allocated evenly throughout the company and among customers.
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Grojean, the president of Schanno Transportation in St. Paul, Minn., spoke at the annual meeting of the Truckload Carriers Association’s Refrigerated Division, held in the Canadian Rockies July 12-14.
Since he took over Schanno in 1999, Grojean said, the company has instituted activity-based costing to make better-informed decisions about pricing and what freight to take.
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