Truck Dispatch companies are external third-party service providers that specialize in truck dispatch service and do usually have a team of truck dispatchers that offer dispatching service 24/7 each day in a week. Many owner operators and small trucking companies do work with these truck dispatch companies. Detailed below are the advantages and disadvantage of working with a truck dispatch company.
There are many advantages, majority of these external service providers have a team of experienced truck dispatchers who have been dispatching for many years. They know and understand what it takes to be successful in securing the right load for their carriers. These companies usually have a team that work in different shift in each day of the week including weekends, and will be available to address issues on loads after hours and weekends.
Owner operators and small trucking companies can also benefit from other services usually offered by the dispatch companies which may include, invoice management, accounting and compliance. The cost of securing these services is usually always cheaper than the cost of hiring one employee to look after all the back-office need of an owner operator or a small trucking company with less than a few units.
In addition, owner operators and small trucking companies do have the flexibility to decide on the level of service needed from the truck dispatch companies. They can easily scale up their operation without the need to be concerned about finding the right employee to help manage their dispatch and back-office needs. Dispatch companies should be able to meet a higher demand since majority of these companies comprise of a team of dispatchers.
One of the most important advantages of engaging a truck dispatch company, is the time owner operator or small trucking companies will save on dispatching. The time saved, can be refocused on other important aspects of their business, such as planning their trip and looking after their equipment. For owner operators, truck driving is a demanding job, rest break after driving should be used to sleep, rest and recover from the fatigue of driving. Attempting to do dispatch during the rest break can be stressful and affect a driver’s sleeping schedule. This can then result in burnout over the long term.
In terms of disadvantages, many owner operators and small trucking companies maybe reluctant to spend the money of engaging a dispatch company. The cost may seem a lot at first, but if evaluated carefully, a more efficient and effective dispatch process can lead to higher revenue on a weekly basis which in turn will offset the cost of the service.
There may also be misinterpretation on control. Many owner operators and small tucking companies feel they maybe obligated to do loads they don’t agree to. This is not true, majority of truck dispatch companies only book a load after securing the consent from their customer, i.e. the owner operator or owner of the small trucking company. So, the degree of control is still very much with the trucking company.
The decision is ultimately in the hands of the truck business owner. Many dispatch companies do offer a free trial period, and there is no harm in giving it a try to assess if working with a dispatch company will beneficial to their overall business goals. Certain truck dispatch companies do offer expertise beyond dispatching, i.e. accounting and compliance and can help the truck company grow their fleet. Attempting to do everything in house is possible, but the desired objective of growing the fleet may take more time and eventually cost more to achieve as compared to partnering with a truck dispatch company.