Should Owner-Operators Use a Truck Dispatch Service?

Working with a truck dispatch service can be one of the best - or worst - decisions you ever make. It's a choice you should make carefully. In this article, we cover:

• Can a truck dispatcher help your company?
• How to select the right dispatcher
• How do they compare to freight brokers?

What is a truck dispatcher, and what do they do?

A truck dispatch service helps owner-operators manage many of the back-office aspects of running a trucking company. Some dispatchers provide end-to-end service, handling everything from finding loads to ensuring shippers pay their invoices on time. Others specialize in certain services.

Most dispatchers bill in one of two ways: a flat rate or a percentage of the load. The billing method is negotiable.

A dispatcher can provide the following services:

1. Finding loads: Perhaps the most important service they provide, especially for new owner-operators who are starting out and don't yet have a list of clients.

2. Assigning loads and managing drivers: A dispatch service should be familiar with your drivers, their routes, how long they've been home, and their availability. This helps match a load with the best resource to deliver it.

3. Maintaining motor carrier compliance: Critical to ensuring you can stay on the road doing what you do best - pulling loads.

4. Managing weather delays and handling issues: A good dispatcher can help you plan for and deal with weather delays, traffic congestion, and other issues that crop up on the road.

5. Providing customer care: A dispatcher can help you manage relationships with shippers, address issues, and set proper service expectations.

6. Handling billing paperwork and collections: A good dispatch service can handle the paperwork associated with delivering and billing a load - invoice submissions to the shipper (or a factoring company), collections follow-ups, and payment processing.

Will they help your trucking company?

In short, the right truck dispatch service can be an important partner in helping you run a successful trucking company. They're especially useful to drivers transitioning from being company drivers to owner-operators.

One of the major reasons owner-operators fail in their first year is the inability to find loads while also running the business. Managing the back-office tasks of a trucking carrier is very time consuming.

Keep in mind that only the right dispatch company helps your carrier. The wrong one could put you out of business in a heartbeat. If you're going to use a dispatch service, consider the following:

1. Get recommendations: Ask your owner-operator colleagues which dispatch service they use and recommend. This is the best way to find a service that meets your needs.

2. Determine what services you need: List everything required to successfully operate your trucking company. Be detailed. Determine which things you can realistically do and which ones you can't (or won't). Make sure the dispatch service you're considering meets those requirements. Anything they can't do must be handled by someone else - and that's you.

3. Understand all costs: Understand your costs and the cost of dispatching before you start running loads. Tally how much it costs to run the business and how much the dispatcher charges. Use this number to determine the lowest rate you can charge to cover all expenses. This helps you and your dispatcher decide if a load is profitable enough to be worth pulling. Some dispatchers may ask that you quick-pay them, which adds to your financial challenges - in that case, you may be able to finance their payments through factoring.

Freight broker vs. truck dispatcher

There are some overlaps between what a dispatcher and a broker can do. Before moving forward, it's important to understand the advantages and disadvantages of working with each.

A freight broker works with shippers and carriers, matching them and earning a profit for doing so. Brokers can be good resources because they have established relationships with shippers. However, their main incentive is to charge shippers as much as possible and pay carriers as little as possible, pocketing the difference. There's nothing wrong with this - a good broker is always a great resource. Just keep their incentives in mind when negotiating.

A dispatcher, on the other hand, technically works for you and should represent your interests. Read your contract to make sure they do. Many dispatchers find loads through freight brokers and load boards, so you may end up working with both a broker and a dispatcher at the same time. Some dispatchers do have their own list of shippers and can be a great resource. In the long run, though, it's always best if you can find your own high-paying shippers.

Do you need a professional truck dispatch service?

Doft Dispatch offers truck dispatch service for dry vans, reefers, flatbeds, and auto carriers/car haulers. Our team of dispatchers and logistics specialists has the experience needed to keep drivers on the road and operations running. Apply now.