last updated 08-22-2022
Dispatching is a function in logistics where loads are matched with a truck driver. A dispatcher may be compared to the glue that holds together the logistics operations.
In a typical logistics operations a dispatcher is responsible for communicating pickup and delivery details to the driver. An efficient dispatching means, time and money saved for the shippers, brokers and carriers.
Dispatchers wear many hats. The efficiency of a dispatcher largely depends on his ability to multitask without much error. Trucking companies are the main customers of dispatching companies. Dispatchers could help trucking companies to scale their load volume without exhausting their resources.
Now that you have an idea of what dispatching means, let's look at the business side of dispatching.
Dispatching is a lucrative business. There has been a lot of growth in the truck dispatching companies, especially during the pandemic. Many shippers and 3PLs are adding dispatching jobs and positions as a part of their strategic expansion.
A lot of former freight agents and brokers are looking at starting dispatching services. Unlike a freight brokering company, trucking dispatch companies focus mainly on finding drivers. Due to lower liability and regulations, the cost of running a dispatching company is lower than a freight brokerage.
Accountability and transparency are the keys to making it possible for dispatchers to do his job well. A key component in a dispatching operations is the communication and visibility they provide their customers regarding their driver network.
Dispatchers usually keep a close eye on their drivers, and act as a communication center for their shippers and brokers. Manual check calls, forwarding of freight documents, sending proof of delivery to the shippers and 3PLs, are all part of a dispatcher's job.
Why would a trucking company hire a dispatching company when they could find loads by themselves on a load board? That's a great question!
Although a driver could easily find loads on a load board, there is a lot more to trucking than just find a load. Once a load is booked a lot of paperwork changes hands. For example: contracts regarding the freight need to be signed, insurance details and other DOT related documents need to be verified and transmitted.
With a growing demand for truck drivers, dispatchers are now busier than ever. There are a lot of trucking dispatching training courses on the internet. A good place to look for a trucking dispatching course would be your local community college. Although trucking dispatcher training is not required by law, it is certainly a good idea, especially if you are new to the industry.
While a dispatching training will give you value information about the functions and roles, you also need to do your own homework to be a successful dispatching company.
For example: Should you focus on more traditional freight dispatching, box truck dispatching service or auto transport dispatching? With the advent of same-day or next-day delivery trucking operations, there is a big demand in the box truck and sprint van dispatching. Last mile deliveries, final mile deliveries, multi stop local deliveries are all areas you could focus on to make your business stand out and succeed.
A dispatching company's main source of revenue is the service fees they get from the trucking companies for their services. Average revenue of a trucking dispatching company is approximately $43,000. A trucking dispatcher typically handles 3 - 5 trucks. This means growing your truck driver network is where you'll make more money.
Is it possible to service more trucks without adding up expenses on adding more dispatchers? The answer is, yes!
A dispatcher spends a lot of time doing manual tasks for the trucking companies. He spends a lot of time on the phone manually checking on the drivers, sending invoices and processing payments.
However a lot of manual tasks can be automated if you use a freight productivity tool. Even though many logistics software have been around for a long time, using modern logistics tools could save a lot of time and money.
With a simple load tracking tool, you could give customers details regarding delivery ETA (estimated time of arrival) and make order changes, all without tying up resources.
Freight tracking software like FreightPrint™ has dispatching capabilities. You can save previously delivered locations, clone previous delivery tickets in seconds, look up available drivers, view active loads on a map, and schedule to dispatch at a later date. Communicate directly with the assigned driver if necessary.
Postpone, cancel or reschedule loads, all without leaving your seat or making any extra calls. Setup auto text messages and email notifications. Exceed your customer expectations.
Want to schedule next week’s loads today? You could be on vacation or sleeping, while FreightPrint™ would be dispatching loads at the right time with relevant information to related parties. Our customers rave about our dispatching software as one of the easiest and most pleasant to use. It’s not modular and clumsy.