Why do you need a dispatcher for your trucking business?

Hiring a truck dispatcher is an essential step in expanding your trucking business.

Are you doubtful about hiring a dispatcher to book loads for you?

One of the primary reasons for the failure of owner-operators in the trucking industry is their struggle to secure profitable loads and backhaul opportunities. In such cases, a proficient dispatcher can serve as a valuable ally, especially during the challenging early stages of a trucking venture. This is particularly beneficial for drivers transitioning from being truck drivers to becoming owner-operators.

The process of identifying suitable loads and managing trucking-related administrative tasks demands considerable time and effort. For a new owner-operator, the availability of time and effort is limited. A well-matched dispatch partner contributes positively to your trucking enterprise, whereas an ineffective dispatcher can hinder your business progress.

How to know that your trucking business needs dispatching?

Ask your operator friends and take suggestions from them:

Tell your owner-operator friends about your business and ask them if they can help you assess your situation and tell you if you need a service of truckload dispatcher.

Ask for reviews and recommendations of good dispatchers from your circle of owner-operators. This is one way to find the quality dispatch service in the market.

Analyze what to expect from a truck dispatching company:

You need to make a broad list of expected services from your dispatching service provider. You need to know what you are willing to do and what you wouldn’t be able to do because of a lack of skills or lack of time. Compare and contrast all the offerings of the dispatch service to ensure that the dispatcher meets all your requirements. Understand that anything that your dispatcher can’t do should be done by someone else- in this case, it’s you.

Know about your operational costs:

If you need to charge your customer we must know what you want to make and how much cost can you pay which includes the payment to the dispatcher and the lowest you can charge to make a profit from your load.

Understand your costs of operation:- fixed and variable costs. 

These calculations make you understand whether the load is profitable enough to pull. Some dispatchers may ask for quick pay which might dent your liquidity if you are not prepared.

How to choose a dispatch service?

A truck business owner needs to be very cautious while choosing a dispatch company. It’s the extended logistics arm of your business and the decision must be very calculated and well planned. 

Tasks executed by the dispatch company:

As an owner-operator, you expect your dispatcher to perform a few key tasks. Booking the high-paying and ideal load is one task, and doing your load paperwork and operations is another task you expect them to do.

Service quality of the dispatcher:

The service delivery quality of your dispatcher is a really important factor that decides if you thrive or slump in the competitive market.

The quality if service also depends upon the service charges of the dispatchers. If they quote an unbelievably low price, it means there is something wrong.

Service charges of the dispatcher:

A good dispatcher will charge a (percentage / flat-rate) on the loads you haul. There is a flat per week fee of about $250 to $450 dollars or a 5 to 10% cut from the load charge. Percentage rates are better because you pay for the loads you book.

Avoid forced dispatching trap:

Don’t fall into the trap of forced dispatching, it’s a big no and a red flag for truckers working with dispatch companies. You should always have an option to select the loads you like. To have a choice, forced dispatching shouldn’t be encouraged.

You should always have the option of working with multiple dispatchers.

A good dispatch partnership brings more dollars:

Good dispatchers negotiate healthy rates ($ per mile) for your loads.

An experienced dispatcher knows good routes where you get a high dollar per mile. Also, a good dispatcher can give you well-paid dedicated lanes and tri-haul loads.

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