The ultimate guide to truck dispatching: everything you need to know

Truck dispatching plays a pivotal role in the world of logistics and transportation – even if it's mostly behind the scenes. While the layperson may overlook it, dispatching is the beating heart of the supply chain, ensuring the successful movements of trucks and freight across the world.  

As logistics and transportation evolve, so does the role of truck dispatching. Adapting to technological advancements and ever-changing market demands is a crucial part of that, and mastering truck dispatching, you'll have to be ready for whatever comes your way. In this guide, we’ll explore the complex world of truck dispatching to shed light on its significance, intricacies, and the path to mastering it.  

What is truck dispatching?

Truck dispatching is the process of coordinating trucks that transport goods from one location to another. Dispatching involves meticulous planning, scheduling, and monitoring to ensure timely deliveries. It also ensures optimizing resources like fuel, time, and vehicle maintenance.   

What does a truck dispatcher do?

Truck dispatchers, also called freight dispatchers, are the people who serve as the primary liaison between truck drivers and clients or shippers. They’re mainly responsible for ensuring shipments are effectively coordinated, picked up, and delivered on schedule.  

With over 40,670 professionals employed in this field, according to the Bureau of Labor Statistics, the role of a truck dispatcher is undeniably significant in the logistics and transportation industry. Among the most common tasks for truck dispatchers are: 

• Managing drivers and scheduling routes: truck dispatchers map out the most efficient possible routes, assign drivers based on their availability and expertise, and create schedules that factor in numerous variables like distance, traffic conditions, and pertinent regulations. 
   
• Communicating: Dispatchers maintain regular, if not constant, contact with drivers to relay essential information, address queries, and provide support whenever necessary. They’re the go-to point of communication for drivers when the unexpected happens – whether it’s a mechanical issue, delay at a loading point, or personal matter. 
  
• Monitoring loads and ensure timely deliveries: Dispatchers monitor drivers’ progress in real-time, adjusting as needed to navigate the many unforeseen challenges of the road. 
  
  
• Finding freight and negotiating rates: As drivers move about the country, situations may arise where a load is no longer available or the plan changes. Dispatchers often help drivers find a load, negotiate rates, and keep drivers loaded and rolling. 
  
  
• Managing documents: Dispatchers may manage documentation for their drivers ranging from rate confirmations, bill of ladings, or more depending on the carrier. 
  

What is the difference between Freight brokers and Dispatchers? 

You’ve probably heard of both freight brokers and dispatchers – and while there are certain overlaps in their integral roles, there are some key differences. Firstly, dispatchers represent the company they work for, negotiating freight, managing schedules, and handling multiple back-office tasks. They plan efficient driving routes and work toward minimizing empty miles to increase profitability and sustainability. 

Freight brokers, on the other hand, act as intermediaries between carriers and shippers, helping shippers find carriers for freight. They earn a commission from both parties and negotiate different rates for carriers and shippers. Brokers are valuable when finding loads to help avoid deadheading and are instrumental in landing consistent, well-paying work. 

Dispatchers often work with brokers and load boards to find freight, playing a dual role in keeping trucks constantly filled with cargo. They're paid a percentage of negotiated rates or a flat fee per load, alongside additional charges for other services. 

How do you become a truck dispatcher in 2024? 

To be a truck dispatcher, you'll need a combination of formal education, a specific skill set, and on-the-job training. These include: 

1. Education: A high school diploma is usually the minimum educational requirement, but some employers prefer candidates with post-secondary education in logistics, transportation, or related fields. 

1. Familiarize yourself with the trucking industry: To remain compliant as a dispatcher, you must be well-versed in transportation industry regulations. This includes knowledge of driver work hours, transportation safety standards, and region-specific rules. 

1. Taking an online course is one of the fastest ways to learn the core skills needed, such as working with load boards, document management, understanding acceptable rates, and negotiating. These courses usually cost between $89 and $500.  

1. Master soft skills: Successful dispatchers possess strong communication and problem-solving abilities. They constantly communicate with the drivers and respond to any unexpected situations that might delay the shipment.  

1. Certifications and licenses: Potential employers may prefer dispatchers with industry-recognized certifications. Holding these credentials could validate your expertise and commitment to the profession.  

If you want to be an independent dispatcher, there are additional steps to start providing dispatching services.  

Registering your business: Start by deciding on the type of business structure that best suits your vision – an LLC, Sole Proprietorship, or Partnership. Then, choose a business name that's memorable and makes it easy for truck drivers to find you. Incorporate clear, descriptive terms like "dispatching services" in your name to enhance visibility and relevance in your niche. 

Getting your INE: Obtaining your Identification Number for Enterprises (INE) is vital for adhering to IRS regulations. Think of your INE as your business's unique tax ID – it's crucial for establishing your business as a legitimate entity in the eyes of the law and the market. 

How to dispatch trucks?  

1. Finding loads: The first step in dispatching is to find suitable loads. Use load boards or brokers to find freight for your trucks. Load boards are online marketplaces where shippers and brokers post loads for carriers to bid. They are an invaluable resource for finding a variety of loads that match your fleet's capabilities and routes.

2. Matching loads to drivers: Once you've identified potential loads, the next step is to match them with your available drivers. It involves considering driver availability, location, equipment type, and load requirements. Efficient matching is crucial to maximize efficiency and profitability.

3. Preparing the carrier packet: This is just a compilation of all the necessary documentation that a carrier fills out when they are hired to ship a product. Some documents that carriers need to share with the broker or online marketplace are the complete carrier profile, certificate of liability insurance, W-9 form, Copy of operating authority and safety ratings, etc.

4. Reviewing the rate confirmation: Before finalizing the load, review the rate confirmation sent by the broker. This document should include:

• • Pick-Up Information: Location and time for load pick-up. 
  • Pick-Up Instructions: Specific instructions or requirements for pick-up. 
  • Total Charge: Ensure this matches the rate you agreed upon with the broker. 

It's crucial to review and agree to all details in the rate confirmation to avoid any misunderstandings. 

5. Assign the load to the driver: Most carriers and independent dispatchers use truck dispatching software for load consolidation. It is essential to get a solution that fits your needs and adapts to the scale of your operation. 

6. Invoicing: Once the load is delivered, the next step is to prepare and send an invoice to the broker or your factoring company. 

 Learn more in our blog "How to Dispatch Trucks from Home."

How much money can you make as a truck dispatcher? 

Truck dispatcher salaries vary based on experience, location, and company size. According to the Bureau of Labor Statistics, the median annual wage for dispatchers was $43,860 in May 2022. Usually, you can expect to earn a competitive salary from the beginning. The more experience, education and expertise you gain on the job, the higher your potential salary will be.  

If you live in an area with a booming transportation industry, you could receive significantly higher wages than you would in a less-populated area. Also, if you’re working with one of the larger transportation companies with more complex and grander-scale operations, your salary may be even higher. Depending on their level of technological sophistication, your pay scales may vary further.  

You might receive a range of additional benefits – bonuses, health insurance, and professional development opportunities – which can enhance your overall compensation package. 

Do you need a license to be a truck dispatcher? 

Specific licenses are optional to become a truck dispatcher, but specific certifications and credentials can enhance your credibility and expertise. Obtaining industry-recognized certifications can validate your knowledge and skills and provide a competitive edge in the job market.  

Remember, the world of truck dispatching is incredibly dynamic. Industry standards are constantly changing, so training sessions, workshops, and courses to keep you up to date should be expected. After all, you want to ensure you're equipped to handle modern challenges.  

Dispatching tools and technology 

In recent years, truck dispatching has seen huge advancements in the tools and tech available to them. These leaps forward have revolutionized how businesses conduct their dispatching operations. 

Loadboards are digital marketplaces where shippers, freight brokers, and carriers converge to post and find loads.  

Dispatch management systems platforms help dispatchers efficiently manage all aspects of the dispatching process, from route planning to driver assignments and real-time monitoring. They include features like automated scheduling, load optimization, and a full suite of reporting tools.  

GPS technology is crucial for real-time vehicle tracking. Dispatchers receive to-the-minute information on the location of their trucks, which helps them make informed decisions about future routing and scheduling. 

Mobile communication tools make seamless communication between dispatchers and drivers a simple process, whether it's a messaging app, electronic logging device (ELD), or mobile versions of dispatching software that's integrated within a company's logistics software. 

Predictive analytics and AI: Modern truck dispatching software tools enable dispatchers to access advanced analytics strengthened by AI to predict delays, suggest optimal routes, and forecast future demand.  

Learn more about dispatcher's tools in our blog "How Augmented Intelligence benefits trucking?"

Cost management: dispatching’s financial impacts 

Dispatchers are expected to impact the operational costs of the trucking companies they work for in the most positive ways possible. If they can strategically manage routes, schedules, and resources, implementing cost reduction measures whenever possible, they’ll bolster their companies’ bottom lines. Here are the most common ways this is achieved: 

Fuel efficiency: One of the most significant expenses for any trucking company is fuel. Dispatchers can reduce fuel use through more direct route planning that avoids congested areas and by ensuring trucks are fully loaded to reduce trip numbers. 

Vehicle maintenance: Well-planned dispatching reduces the wear and tear vehicles receive from constant use. If the planned routes avoid rough terrain and optimize load distribution, they'll help extend the lifespans of trucks and trailers, reducing maintenance costs.  

Driver retention: Dispatchers improve driver retention by properly managing drivers' schedules and rest periods, reducing their overall stress and boosting satisfaction. This helps reduce the significant costs associated with high turnover.  

Reducing idle time: Any idle truck represents a drain on resources. Dispatchers should aim to minimize idle time by ensuring trucks are loaded and moving down the road as often as possible to maximize revenue generation for their companies.

Learn more in our blog "Uncovering Efficiency and Growth in Truck Dispatching: Strategies for Success."

Evaluating dispatcher performance 

Dispatching operations are typically measured for effectiveness based on several Key Performance Indicators (KPIs). These include: 

• On-time delivery rates: This KPI measures the percentage of deliveries made on or before the scheduled time. It reflects a dispatcher’s ability to plan and execute routes efficiently.  
• Fuel efficiency: If dispatchers can optimize routes and minimize idle time, they'll significantly reduce fuel consumption, leading to dramatic cost savings. 
• Driver satisfaction: Dispatchers routinely manage drivers' schedules and ensure their safety, so they play a massive role in driver satisfaction. Satisfied drivers mean a dispatcher has performed admirably in their duties.  

Through these KPIs, companies can determine the effectiveness of their dispatching operations and make more informed decisions to improve continuously. 

Top skills for effective dispatching operations 

To excel in the truck dispatching profession, you must possess a unique blend of skills to navigate the complex and dynamic world of logistics. With these skills, you'll help guarantee the smooth operation of the entire transportation process. 

People skills: Dispatchers interact with a diverse array of individuals every day. These include drivers, shipping customers, cargo recipients, and everyone in their company. These groups each have their own goals and priorities, so you'll need to satisfy these competing needs while organizing everyone to get the job done right – every time.  

Computer skills: We’re undeniably in a digital age, so as a dispatcher, you’ll need to be proficient with various software programs. These include GPS tracking software, Excel spreadsheets, load boards, customer relationship management tools, and the dispatching software that your company utilizes.  

Analytical skills: Dispatchers must regularly make independent decisions about the best routes for drivers for any given job. You'll need to be ready to solve problems whenever issues arise and understand how every piece of the puzzle fits together. Otherwise, you won't be able to respond quickly to unforeseen changes or customer requests.  

Attention to detail: As a truck dispatcher, you’ll review countless documents and reports each day. That means you’ll need a keen eye for detail to identify and correct errors, ensure compliance with regulations, and maintain accurate records. 

Dispatcher's role in driver management?

Performing well as a truck dispatcher requires a keen eye for driver management. Dispatchers must allocate drivers to various routes and shipments to ensure their work hours and rest periods comply with industry regulations. This won't only help maintain operational efficiency but also safeguard your drivers' well–being.  

Driver safety is more important than ever. That’s why dispatchers must actively monitor drivers’ performance and general safety while on the road. You’ll need to keep a close eye on their hours to prevent fatigue – one of the leading causes of accidents in the trucking business. As a dispatcher, you’ll need to enforce rest periods and ensure your drivers aren’t overworked. 

Dispatch’s role in asset utilization 

Truck dispatchers are some of the key players when it comes to effective asset utilization. They optimize the use of trucks, trailers, and equipment to maximize both productivity and profitability.   

According to Dr. David Correll in a statement presented to Congress, "American long-haul, full-truckload truck drivers spend on average 6.5 hours per working day driving their vehicles, even though they’re legally permitted to drive for up to 11 hours per day."

With strategic planning and coordination, dispatchers can ensure every available asset is fully utilized to reduce idle time and increase the number of successful deliveries.  

This discrepancy means that approximately 40 percent of America’s trucking capacity is left untapped each day. Dispatchers can play a part in addressing this gap and find ways to enhance the efficiency of their company’s assets without compromising safety or regulatory compliance. 

Learn more about improving asset utilization in our blog "Cutting Deadhead Trucking."

The road ahead 

Now, you should know that truck dispatching isn't just about moving goods from point A to point B. It's about optimizing routes, ensuring timely deliveries, and navigating the thorny tangle of challenges that arise each day. Fortunately, with the advent of AI and other advanced logistics software tools, truck dispatching can offer unprecedented efficiency and precision.  

If you're considering a career in truck dispatching or adjacent businesses, remember that every facet contributes to the larger picture of a seamless supply chain. As the industry itself evolves, so will the role of truck dispatching. It's important to embrace technological advancements as they come, stay up to date on industry trends, and prioritize continuous learning to achieve success. Whether you're a seasoned professional or just getting started, remember that dispatching is undeniably the supply chain's beating heart.