The FTAI Managers Guide to Distribution Costs 2025 outlines a familiar pattern for Irish hauliers. Fuel remains volatile, labour costs continue to rise and maintenance spending is increasing. Meanwhile, haulage rates have not kept pace. Margins are tightening, and operators need more control over how they run.

While no business can change market prices, many can make meaningful improvements in how they manage fuel, labour, maintenance and overall visibility. These improvements add up, and a modern TMS is often the difference between keeping margins stable and watching them erode.

Below is a breakdown of the key cost pressures highlighted in the report and practical ways operators can address them using structured processes and tools like Stratum.

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1. Fuel: controlling the biggest and most volatile cost

Fuel is still the number one expense for most fleets. Operators cannot influence the pump price, but they can reduce unnecessary kilometres, tighten up pricing models and understand which routes genuinely make money.

A TMS helps by supporting efficient route planning, reducing empty running and giving planners the information they need to avoid low-yield detours. Stratum also gives operators clearer job-level costing, allowing them to identify routes or customers that drive up fuel spend without providing enough return.

Surcharge management is another area where many operators gain ground. Instead of manual calculations or inconsistent rules, Stratum let's you manage your surcharges effectively, customer by customer, week by week. This keeps pricing aligned to cost conditions and protects your margins when the market shifts.

Small reductions in wasted kilometres and small improvements in surcharge accuracy can have a large impact on overall profitability.

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2. Labour: managing rising costs through better workflow and planning

The FTAI report highlights steady labour cost increases, combined with a tight driver market. One of the most effective ways to handle those rises is to improve productivity across planning, driving and back-office work.

Reducing administrative duplication is often the quickest win. Digital PODs, integrated job workflows and automated communication help planners and drivers avoid manual rework. Accounts teams benefit too, with cleaner data and less time spent searching for missing paperwork.

Better scheduling is another important factor. When all job, route and vehicle information sits in the same system, planners can allocate work more effectively and avoid under-utilised driving hours. This helps operators get more value from the labour they already pay for, instead of needing to add additional staffing.

Clearer workflows create the kind of operational consistency that controls labour costs without compromising service.

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3. Maintenance: moving from reactive costs to predictable planning

Maintenance costs continue to rise, driven by parts prices, workshop labour and growing compliance requirements. A significant portion of that cost comes from unplanned work and lack of visibility rather than the maintenance itself.

Centralising maintenance records helps operators understand actual spend, upcoming service requirements and the true cost of running each vehicle. With Stratum, every job card, part and labour entry is recorded automatically, making it easier to forecast and plan.

Service triggers based on mileage or engine hours reduce late servicing and lower the risk of expensive failures. More accurate stock control means fewer emergency parts purchases, and fewer vehicles sitting idle waiting for components.

Predictability is the biggest cost saver. When you know what work is coming, and when, you avoid the most expensive category of maintenance: surprises.

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4. Cost Visibility: the foundation for every margin decision

One of the strongest themes in the FTAI report is that costs are moving faster than rates. Without clear, up-to-date visibility, it becomes difficult to understand where your money is going or which parts of the operation are eroding profit.

This is where a TMS shifts from being a convenience to a requirement. With all operational, financial and maintenance data in one place, operators can see cost per mile, cost per customer and cost per vehicle without relying on spreadsheets or guesswork.

That level of clarity makes it possible to intervene early. Operators can spot unprofitable contract terms, identify vehicles that cost too much to run or confirm whether a recent rate increase truly covers rising expenses.

Good visibility does not stop costs rising, but it ensures decisions are grounded in fact.

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Protecting margins starts with control

The findings in the FTAI report make one point clear. External costs will continue to rise, and the businesses that protect their margins will be the ones that understand their operations in detail.

Fuel, labour and maintenance are not easy to influence, but planning, process and visibility are. A system like Stratum helps operators tighten their operation, reduce waste and make more informed decisions.

In a market where margins are under pressure, the operators with the clearest view of their costs are the ones best placed to protect them.

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