Many owner operators or small trucking companies find it difficult to decide if they should do the dispatch themselves or engage a truck dispatch service company to manage the dispatch of their trucks. In the article, we will evaluate the advantages and disadvantages of both options, to help owner operators and small trucking companies make the right decision for their business.

Self or In House Dispatch

Dispatching in house could either mean, the owner operator doing the dispatch on his own for his unit or a small trucking company employing their very own full time dispatcher.
The advantage of dispatching in house is the control of deciding and securing exactly the load you like to haul. A trucker securing his own loads, will be able to decide instantly if a load is a good fit for his or her schedule. In addition, if he or she is doing the dispatch without hiring anyone else, then the owner operator will be able to save on dispatch fees. If a small trucking company hires their own employee to do the dispatch, the net differences between having their own employee and external dispatch firm might not be much.
There are however significant disadvantages to self-dispatching for owner operators. Truck driving in itself is already demanding. Truck drivers, need to plan their hours, perform pre-trips and get good rest whenever possible to able to drive safely on the road. Performing their own dispatch can be stressful and will require drivers to be on the look out for good loads all the time, even when on the road or during their rest periods. It gets even more challenging in a downtrend market, where good loads maybe difficult to come by.
For small trucking companies, hiring and training a person to be a dispatcher will require a lot of effort and there is no guarantee the employee doing the dispatch will be able to do the job as good as an experienced dispatcher. There is also the risk, the employee may quit since dispatching is a demanding job, that requires the dispatcher to be available 24/7 each day in a week.

Truck Dispatch Companies:

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.

 

Advanced Logistics Solutions Dispatch Services offers one of the best truck dispatch services to owner operators and carriers across USA. We offer other back-office solutions such as compliance and accounting to carriers in addition to our truck dispatch services to help our carriers succeed in this competitive yet rewarding trucking industry. At ALS, our truck dispatchers don’t just dispatch, they go the extra mile to help build relationships to help carriers grow their business. Its where professionalism meets quality. Visit www.advancedlogisticsinc.com to learn more about our processes and how our method of truck dispatching can help you succeed and grow your business.