Long hours, deadhead miles, paperwork avalanche – trucking throws a lot your way. What if there was a way to simplify things, score better loads, and finally catch a break? Truck dispatch companies can be your secret weapon. They find high-paying routes, negotiate with brokers, and handle the paperwork headaches.
Ready to learn how a truck dispatch service can transform your business? Let's explore!
1. Experience: The Most Important Soft Skill For A Truck Dispatch Company
A truck dispatch company has a direct impact on your operations and revenue. Hence it is important to work with one with experience in the field.
Experience in dispatching the equipment you drive helps you maximize, whether it is a dry van, flatbed, reefer, box truck, or any other specialized hauls.
Experienced truck dispatch companies will also have a good load network of brokers and shippers. Which means you have multiple high-rate-per-mile loads for you to haul. Because of this load network, your deadhead miles are considerably reduced.
Think of a truck dispatching company as your GPS, guiding you to the most profitable destinations with the confidence of a seasoned trucker.
2. Leverage the Trucking Community: Your Network is Your Net Worth:
The trucking community is your extended family, a treasure trove of knowledge and support.
Don't be shy – tap into online forums like Trucker Nation and The Truckers Network, attend industry events, and connect with fellow drivers.
See the trucking dispatch company rating, reviews, and rankings in the Trust Pilot, Better Business Bureau, OOIDA, etc.
Share your experiences, and grill potential dispatchers with questions. Remember, a good reputation speaks volumes. Feedback gathered from these platforms can be used to improve and better the dispatching service.
Think of review platforms as your trucking dispatching sign boards, ensuring you make an informed decision based on real-world experiences of your community.
3. Transparency: Don’t Get Blinded By Gimmicks
Don't be shy have a couple of discovery calls to ask the tough questions about truck dispatching company services. Fees, commission structures, hidden costs – these can quickly derail your financial journey.
Get complete details about pricing, fees, paperwork charges, extra commissions, and other hidden costs. You need to also look into the services that your truck dispatching company provides you.
You need to ensure the dispatch contract is simple and not harsh. The contract shouldn’t be binding.
Before you jump in, understand the dispatch operations, and communicate your hauling requirements and other criteria. What are your preferred lanes? What level of communication do you desire?
A reputable dispatcher will be upfront and transparent about their pricing model, ensuring you're on the same page.
Trust is a two-way street; transparency is the foundation for a strong, lasting partnership.
4. Size Matters, Small Is Big For Truckers
Don’t be influenced by the size of a dispatching company. You need to consider the size and culture of the dispatch company.
One-on-one relationships and a smaller personalized approach can be more beneficial for your trucking business. The attention your business gets is directly proportional to your dispatch company's mindset.
A good nimble dispatcher can become your trusted advisor, offering tailored solutions and a level of attention that larger companies might lack.
Also, note truck dispatch company must provide additional services such as back office tasks, paperwork, broker credit checks, and broker negotiations. We also need to see driver route assistance and breakdown assistance.
Dispatch companies should provide simple billing and the lowest commissions.
5. A Big No: Forced Dispatch
Your dispatcher must check each shortlisted load with you before confirming (unless you have given a load criterion and it matches).
One of the primary responsibilities of the Dispatcher is to find you the best load and normally it’s not necessarily the first load. In most cases, dispatchers would be managing multiple carriers and they might try to force loads onto you.
So before you finalize a truck dispatch company get clarity on this item.
6. Reach Revenue Goals With Assistance From Freight Dispatch Company:
6.1 How much can you make?
The revenue of a truck company depends on the consistent rate per mile (RPM) that it garners. Good RPM is dependent on load rates which are dependent on market conditions, type of load, and source of load.
Your truck dispatch company should formulate a dispatch plan and will work with you to reach your realistic revenue goals.
Weekly and monthly review of the dispatch plan is a must to track progress and also to make necessary changes in trucking variables to achieve the revenue target.
Before planning. one of the most vital goals is to get an acceptable rate per mile and also get to and fro loads so that you don’t have to move empty. Good dispatchers let you book triangulated loads, increasing the revenue of each haul exponentially.
7. Truck Dispatch Service Pricing Models:
7.1 How much will you spend?
There are multiple ways that truck dispatch companies charge for their service. The most common pricing models are:
- Flat % Rate: In this model, the dispatch company charges a flat % fee weekly for the previous week's gross revenue they booked for you. The rate can vary between 3% to 8%.
- Subscription Model: In this model, the dispatch company charges a flat amount weekly per truck irrespective of the loads booked. The rate can vary between $225 to $450 per week/truck.
- Hybrid Model: This is a combination of Subscription and Flat % Rate. For example, a dispatch company might charge a $49 subscription per week/truck + 3% of the previous week's gross revenue.
Pricing will also vary on the type of equipment and fleet size
Following is a basic checklist of solutions and the scope of activities of the truck dispatch company
- Dedicated Dispatcher or Team
- No Forced Dispatch
- Broker Credit Checks
- Broker Negotiations
- Driver Assistance
- End-to-End Paperwork
- Reports
