There is more to running a trucking business than simply owning trucks and carrying goods.
You’ll have to decide if you want to hire a dedicated dispatch team or do the job yourself.
Every fleet has its own needs, and what works well for one may not be suitable for another.
We will explain the main differences between using a dispatch service and handling your
loads by yourself. No matter if you operate one truck or many, figuring out the trade-offs can
guide you in making a more profitable business decision.
What does dispatching mean in trucking?
People in dispatching in the trucking industry handle the movement of freight, negotiate pricing, plan routes, and manage communication among shippers, brokers, and drivers. A
dispatcher takes care of loading trucks properly and on schedule, as well as handling paperwork, following regulations, and solving issues as they come up.
Functions of a Truck Dispatch Service
A dispatch service is a company that helps you with all or part of your dispatching needs.
This includes:
● Getting jobs that offer higher pay
● Working out the rates with brokers
● Dealing with a bill of lading (BOL) and rate confirmation documents
● Taking care of route planning and driver scheduling
● Assisting at any time when unexpected problems arise
A lot of dispatch services focus on assisting owner-operators and small fleets that are not
ready to hire their team.
Advantages of Relying on a Dispatch Service
1. Time-Saving
By outsourcing dispatch, you can concentrate on driving, keeping your vehicles in good shape, and increasing your business.
2. Expert Negotiation
Experienced dispatchers are usually able to get better prices for their shipments because of their strong broker relationships.
3. Scalability
A dispatch service will be able to respond quickly to your increased business needs without you needing to hire more staff.
4. Back-Office Support
Some dispatchers manage the paperwork in the office, which saves you time.
Problems with Using a Dispatch Service
1. Cost
Usually, dispatchers take 5% to 10% of what you earn from each load. For loading
$2,000, you might have to pay $100–$200.
2. Less Control
When you use a third party, you could end up with loads you don’t prefer and less
transparency than you’d like.3
3. Quality Varies
There are differences in the skills of dispatchers. There are cases where
professionals do not have the right amount of experience or cut corners.
How to Do Dispatching Yourself
When you handle your dispatch, you must get the loads, agree on the rates, take care of the necessary paperwork, and monitor deliveries. Many people choose this route because it is
inexpensive and they can control everything.
The Benefits of DIY Dispatch
1. Full Autonomy
You select the shipments, routes, and brokers that are most suitable for your company.
2. Cost Savings
There are no service fees, so you keep all the money you earn after the company’s costs are deducted.
3. Hands-On Learning
You learn more about the prices in the market, how brokers work, and how logistics is handled.
Problems with using DIY Dispatch
1. Time-Intensive
Taking care of dispatch takes a lot of time, especially if you drive as well.
2. Learning Curve
Getting good at load boards, rate negotiations, and freight compliance is not easy and requires effort.
3. Possible Danger from Low Interest Rates
New dispatchers might not recognize good opportunities and could end up taking on low-paying jobs.
Advantages of Relying on a Dispatch Service
Consider these factors when comparing dispatch with DIY.
1. The Size of Your Business
● Some owner-operators choose to do things themselves to save money and stay in
control.
● Dispatch services are helpful for small fleets as they reduce the workload and help
drivers.
● Big fleets usually hire internal dispatch teams or use a mix of internal and external
options.
2. Experience Level
● Do you have little experience in the industry? Having a dispatch service can prevent
you from making new driver errors.
● Seasoned driver? If you are capable of finding and negotiating excellent loads, DIY
might be the way for you.
3. Time Availability
If you drive all the time, it’s likely you won’t have enough time to handle dispatch as well.
With outsourcing, you can continue your work without experiencing extra stress.
4. Budget Constraints
Although DIY is cheap on the surface, making the wrong dispatching choices can be
expensive in the end. Think about the future benefits, not only about the upfront costs.
Costs of Using a Dispatch Service vs DIY
Feature
- Average Cost
- Time Commitment
- Control over loads
- Negotiation Expertise
- Back-Office Support
Dispatch Service
- 5% – 10% per load
- low
- medium
- High (experienced)
- Often Include
3. Quality Varies
- $0 (but Time = money)
- High
- High
- Varies
- Self – managed
How to Know When It’s Time to Go from DIY to Dispatch (or the Other Way Around)
Change to Dispatch When:
● You find it hard to handle all the loads and drive the truck at the same time.
● You are missing out on potential earnings because you don’t negotiate well.
● You are looking to grow your fleet without having to hire people directly.
Do It Yourself When:
● You are equipped with the time, equipment, and know-how to handle dispatch well.
● You wish to have a stronger grip on how things are done and how you interact with
customers.
● You want to increase your profit by reducing fees from third parties.
Is a Hybrid Solution the Ideal Combination?
Several trucking businesses use dispatch services when they are busy and handle the work
on their own when things are slower. Some rely on truck dispatch software, for example,
Truckbase, LoadOps, or Tailwind TMS, to handle some of the process.
This way of thinking makes it possible to
● Managing your time more efficiently
● Increased control
● Reduced costs in the future
In the end, it’s important to choose what is right for you.
Every situation is different, so there is no single solution for everyone. The decision should
be based on your aims, the amount of work, and what your company can handle.
Ask yourself:
● Is there enough time for me to handle dispatch without problems?
● Am I able to deal with brokers when buying or selling real estate?
● Should you focus more on having control or on being convenient at this moment?
If you are just starting, using a dispatch service can help you get used to the job and
concentrate on driving. As you get more confident and learn from your mistakes, doing
things yourself might give you more profit and freedom.
No matter what you settle on, make sure it fits your business strategy for the future, and be
ready to make changes when required.
Key Takeaways
● Dispatch services are convenient, skilled in negotiations, and flexible, but they
charge a fee.
● When you do dispatch yourself, you can save money and make all the decisions, but
it takes time and industry experience.
● Select a provider according to your number of vehicles, the amount of experience
they have, how much time you can give them, and your future goals.
● You could try a hybrid method or buy dispatching software to make your business
more flexible.
