What is Dispatching?

25 June 2024

Part 1: Dispatching Fundamentals.

A: What is Dispatching?

Dispatching is the process of planning, coordinating, and controlling the movement of vehicles, drivers, and cargo to ensure efficient and safe transportation of goods or people. It involves managing the logistics of transportation, including route planning, driver assignment, and scheduling, to meet customer demands and business objectives. This business helps owner operators of a trucking company to find freight or load, speak with brokers who is delivering the load/freight, conduct negotiations on trucking the freight, dispatch the drivers, handle the issues and set up routes. In most cases the owner of the dispatch company is the driver and owner of the truck.

Dispatching plays a crucial role in the transportation industry, and its importance cannot be overstated.

B: Importance of dispatching:

On-time delivery: Dispatching helps ensure that goods or people arrive at their destinations on schedule, meeting customer expectations and maintaining business reputation.
Efficient use of resources: Dispatching optimizes the use of vehicles, drivers, and other resources, reducing costs, and improving productivity.
Safety: Dispatching helps ensure that vehicles are properly maintained, drivers are trained and rested, and cargo is secured, reducing the risk of accidents and damage.
Customer satisfaction: Dispatching helps build strong customer relationships by providing timely updates, managing expectations, and resolving issues promptly.
Competitive advantage: Effective dispatching can be a key differentiator for transportation companies and taking the company in a good position in the market.
Cost reduction: Dispatching helps minimize costs associated with fuel, maintenance, and labor, leading to increased profitability.
Regulatory compliance: A Dispatching company based on regulations, such as hours of service, vehicle inspections, and cargo securement move on.

In summary, dispatching is a critical component of the transportation industry in the United States of America that its aim is getting profit with the customer satisfaction.

C: The Dispatching Process

If we see to the process of dispatch, the following procedure can be a good example:

The following the stages can be written;

1: Load Providing.

Customer provides a load for transportation.
Customer mentions the order details into system (e.g., Pickup and delivery locations, cargo details, special requirements and the date of the pickup and delivery.

2: Load Posting.

Broker places the load on dispatching systems for transportation.
Broker mentions the order details into system (e.g., Pickup and delivery locations, cargo details, special requirements and the date of the pickup and delivery.

3: Load Booking.

Dispatch team find and review the order/load.
Dispatch team reviews and check the brokers/customer based on factors like;

Broker Reputation. Dispatch team have to verify the broker’s credibility, reliability and payment history. (brokers with over 90 scores).
Broker’s payment type. Dispatch team have to keep eyes on payment type and timing that how much days will the payment takes for the particular load.
Insurance and Liability. Dispatch team must confirm that the broker has adequate insurance coverage and understand liability responsibilities.
Broker’s special requirements.

Dispatch team checks for availability of resources (vehicles, drivers, equipment etc.)
Dispatch team reviews and optimizes routes based on factors like;

Traffic and road conditions.
Load weight.
Drive hours.
Weather condition.
Fuel efficiency and costs.
Destinations (in return will the driver get load or not?)
Incoming weekends.

Route optimization aims to minimize costs, reduce transit times and improve service quality.

Dispatch team negotiate rates, terms and conditions with broker or customer.
Dispatch team negotiate with the brokers about the accessorial charges. (e.g., chain, strap, binders etc.)

At the end of booking, Dispatch team have to sign contract with the broker using email. Dispatch team has to fill some paper works such as, Carrier Packet that comes with PDF attachment or clickable link that the dispatcher can fill it on website. When the dispatcher signed the contract, he has to send the Carrier packet along with W9 (it’s about tax and company’s information, CoI (certificate of insurance) that some brokers ask to make an insurance on their name). These all is needed when the dispatcher works with a new company, if the company has a past the paper is no needed. Only rate conformation is enough. After doing the paper work, the broker sends rate conformation in 10 or 15 minutes but before receiving the rate con, the dispatcher has to ask from the broker that is he locked the company for haul or not. Cause he needs to fix and final the deal. In rate confirmation the broker mentions the shipper details, the receiver details, the pickup number, pickup location, time and the weight with the rate of delivery that the dispatcher needs to check all.

After doing these all the dispatcher needs to contact the driver and driver has to take pictures from pickup, drop-off and BoL (bill of Loading) from the receiver and get the PoD (proof of delivery) to get the payment.

4: Haul the Load.

Dispatch team contact the driver to haul the load.
Dispatch team check the vehicle suitability by the driver.
Dispatch team ensure that the driver understands safety protocols and security procedures for the load.
Dispatch team share the route and directions to the driver.
Dispatch team share the delivery details including pickup location, delivery location, time and any special requirements.
Dispatch team ask from driver to check;

Fluid levels: Check the engine oil, coolant, transmission and brake fluid levels.
Tires: verify proper tires pressure, tread depth and look for signs of wear or damage.
Lights and Signals: Ensure all lights, including headlights, taillights and brake lights are functioning correctly.
Brakes: Test the brakes to ensure they are functioning correctly.
Safety Equipment: Verify the presence and functionality of safety equipment like fire extinguishers, first aid kit.
Trailer Coupling and Uncoupling: Verify the trailer is properly coupled and uncoupled.
Necessary Equipment: Verify the presence of needed equipment like flashlight, extra fuses, gloves, tie downs, reflectors etc.

Dispatch team check the following documentations and stickers;

Permit Certificates. (Intrastate permits).
Milage confirmation.
IFTA (International Fuel Tax Agreement)
MC (Motor Carrier Number) and USDOT
Lock book
Lease agreement
Truck registration
Cities stickers that the company has the permit.
Annual inspection letter
Driver license
Insurances
Dispatch team have to check the weight and height of the load. (Max 80000 Pounds).

Note: The driver has to send pictures from all above documents and checks.