Should Owner-Operators Use a Truck Dispatch Service?
Collaborating with a truck dispatch service can significantly impact your trucking business – for better or worse. This decision demands careful consideration. In this article, we delve into:
– The potential benefits of enlisting a truck dispatcher for your company.
– Guidelines for selecting the most suitable dispatcher.
– A comparison between truck dispatchers and freight brokers.
Does your current dispatcher meet these criteria? We Dispatchers Do
– Authorized Freight Broker under FMCSA’s final ruling; a legitimate agent. Unlike many dispatchers, we adhere to this rule to prevent potential $10,000 fines per dispatched carrier.
– Operating as a bona fide Individual/Sole Proprietor or a single-member LLC, C – Corporation, S – Corporation, or Partnership. We discourage the use of unverified Facebook dispatchers or foreign entities that lack transparency.
– Fully insured with up to $1 million USD for Errors & Omissions and professional liability coverage.
– Headquartered in the United States.
– Registered Dun & Bradstreet D U N S Number.
– Registered with The Better Business Bureau, boasting an impeccable “A+” rating.
– Supported by a dedicated specialist proficient in Truckstop.com operations.
– Equipped with a proprietary dispatch platform that’s globally recognized – TotalDispatcher.com.
– Backed by a comprehensive 50-page standard operating procedure dispatcher manual (SOPs), which all our dispatchers adhere to.
What Is a Truck Dispatcher and What Do They Do?
A truck dispatch service aids owner-operators in managing critical back-office responsibilities within their trucking enterprises. Some dispatchers offer all-inclusive solutions, overseeing everything from sourcing loads to securing timely payments from shippers. Others specialize in distinct services.
Dispatchers generally bill for their services using either a flat rate or a percentage of the load. The billing structure is typically negotiable.
Services a dispatcher can offer include:
1. Load Sourcing: Particularly vital for new owner-operators building their clientele, dispatchers excel at locating suitable loads.
2. Load Assignment and Driver Management: Dispatchers familiarize themselves with your drivers, routes, and availability to match loads with the best-suited driver.
3. Motor Carrier Compliance: Maintaining compliance is paramount to keep your trucks rolling smoothly.
4. Navigating Delays and Issues: Dispatchers assist in planning for and addressing weather delays, traffic congestion, and unforeseen roadblocks.
5. Customer Relations: Managing relationships with shippers, troubleshooting issues, and establishing service expectations.
6. Billing and Collections: Dispatchers adeptly handle billing paperwork, submissions, collections, and payment processing for delivered loads.
Will a Dispatch Service Benefit Your Trucking Company?
In essence, the right truck dispatch service can prove instrumental in the success of your trucking venture. This partnership is particularly valuable for drivers transitioning from being employees to owner-operators.
One of the main reasons many owner-operators falter within their initial year is their struggle to secure loads while managing various operational tasks. The administrative aspects of a trucking carrier can be time-intensive.
However, it’s crucial to note that not all dispatch companies are created equal. The wrong choice could potentially jeopardize your business.
If You Decide to Use a Dispatch Service, Consider the Following:
1. Seek Recommendations: Reach out to fellow owner-operators for recommendations on reliable dispatch services that align with your needs.
2. Define Required Services: Thoroughly list all essential tasks for your trucking company. Determine which responsibilities you can handle and which ones demand external support. Ensure the dispatch services you evaluate fulfill these needs.
3. Comprehend Costs: Gain a comprehensive understanding of all costs involved – both yours and those associated with dispatching – before embarking on loads. Calculate your business expenses and the dispatcher’s charges. Use this information to determine the lowest viable rate to cover expenses. This calculation serves as a benchmark for assessing the profitability of loads.
Freight Broker vs. Truck Dispatcher
There exists an overlap between the roles of dispatchers and freight brokers in supporting your company. Before proceeding, grasp the pros and cons of partnering with these intermediaries.
A freight broker bridges shippers and carriers, profiting from matching them. Brokers leverage established shipper relationships but typically aim to maximize charges and minimize payments to carriers to pocket the difference. A dispatcher, though working for you, might engage brokers to source loads.
In conclusion, selecting the right dispatch service can significantly influence your business’s trajectory. Make an informed decision to enjoy a successful trucking venture.