Finding good loads to ply to and fro is one of the toughest tasks for a new trucking operation. As an owner-operator, you have 2 options here use a load board and make load negations on your own or enlist the services of a trained dispatcher (who will do all heavy lifting for you).
We are going through the advantages and disadvantages of truck dispatching for owner operators.
The advantages of truck dispatching
Working with a dispatch company is very good for your trucking business, there are multiple benefits that come while working with one, we have listed a few below.
- High paying loads: A dispatch company works as a logistics arm of your business, it provides you with the best paying truck loads. The dispatcher often connects you with loads faster than you would be able to do on your own, this means you run fewer empty miles.
- Multiple load options: Dispatch company will provide mutiple loads that match your plying direction and rate per mile requirement.
- Dedicated dispatch agent: A disptach company will provide you a gental, knowledegable, professional and helpful agent specially for you. This means that he/she will sit down with you and understand your custom requirements and zero in, fetch, negitoate the best loads for you.
- Free business reports: A quality disptach agent will provide you weekly and monthly detailed reports of your hauls and performance.
- No forced dispatch : A quality dispatcher won’t force you to take loads that they find but they will encourage you to go with a load that helps you to achieve your financial priorities and load hauling plan.
- Broker credit check: A good disptacher will provide you with the best brokers/shippers with stellar credit histories. The dispatcher credit checks will help you to avoid broker/shipper nonpayment.
- Broker negoitiation : A good dispatcher negotiates very hard for each load, for you. We help you to get the best rate per mile, clarify load specifics and avoid uncertainties about the load.
- End to end paper work/Virtual office : A professional dispatcher also helps owner operators/trucking companies with their billing, collections, and other paperwork related to customer service and carrier compliance.This includes broker setup, W9, Insurance certificate generation, sending you a copy of all rate confirmation, consolidating rate confirmation/BOL/POD’s/Lumper receipts/scale tickets post-delivery, creating all your invoices, factoring submission, and many more
- Complete driver assistance: The dispatcher helps to avoid bottlenecks and hazards which you would have been unaware of or unable to navigate in real-time without the help of a professional dispatcher, this means smoother and timely trucking operations.
The disadvantages of truck dispatching
An owner operator or small/mid-size fleet will have to look at cost and service quality when they are planning to hire a logistics arm (dispatch company). If your current or projected revenues don’t support hiring an outside dispatch arm, you shouldn’t hire one
As an owner operator you have a list of dependable clients who provide you with consistent truckloads to and fro, you don’t need to hire a dispatcher because it doesn’t make any financial sense.
Like other businesses the service quality of dispatchers is not consistent, some perform really well and some are patchy, to say the least.
Appointing a dispatcher is a very vital business decision, so carriers should do their homework and vet their options and consider what services they need almost immediately.
Experienced drivers plying on known routes wouldn’t need assistance with navigating around hazards, bottlenecks, and slowdowns. And a carrier with experienced and knowledgeable staff efficient in operations may not need help with billing and collection operations.
You should try to understand which service offers your dispatcher aces or poorly does, then look at your requirements and decide on which dispatch service company to pick. Be alert, intuitive, and proactive while picking a dispatch partner
You need to be increasingly cautious while deciding which dispatcher partner to pick. Please avoid firms with long-term contracts, hidden stipulations. Long-term success depended on your own hauling loads for credit-worthy shippers/brokers, your dispatcher should be able to help you with finding good clients. Then only your trucking business will be successful.
Get to know the best dispatching company in the USA
MaxTruckers Dispatch Services is one of the nation’s top professional dispatch companies. With a team of highly trained dispatchers, you get the best high-paying loads with zero effort.
You focus on your hauls, we get you continuous top paying loads. Hence, we work together to “GROW Your Trucking Business and Maximize Profits”, to which MaxTruckers is highly committed.
See your dispatching options by visiting our dispatching portal
Other urgent requirements for a owner operator
Firstly, you need a good insurance agency/provider covering you for various circumstances/policy types. You need to take 3rd party liability, cargo, uninsured motorist, trailer/equipment insurance.
We need to enlist a factor who have competitive rates and above par service quality to make your business bottle neck free. This will help you to have a good cash flow and working capital.