Whether or not to use a dispatch service is an important decision for small-to-medium-sized trucking companies. A reliable partner such as M&J Dispatch will assist you in quickly locating loads. However, establishing a working relationship with a dispatch service like M&J Dispatch isn’t always the best option for freight carriers. Let’s look at some of the advantages and disadvantages.
Freight Broker Vs. Freight Dispatching Service
First and foremost, it is critical to recognize that there is significant overlap between dispatching services and freight brokers, particularly in the trucking industry. Both assist in matching carriers and shippers and dealing with broad logistical issues for drivers on the road. The main distinction between them is not so much what they do but how they do it—or, more specifically, how they are compensated.
Dispatching services typically bill the shipping companies with whom they work. In other words, a dispatching service works for you or your shipping company. On the other hand, Freight brokers charge shippers the highest possible rate. They profit by paying their carriers less than what they charge. Neither model is superior to the other, but understanding the fundamental differences between them is critical to your bottom line.
The Advantages of Dispatching Services
Working with a good dispatch service has numerous advantages. They primarily serve as a logistical arm for your operation. When owning a small trucking company, it is all you can do to keep track of the trucks, the needed maintenance, and all that goes into that side of things. However, you will need loads and logistics of these loads to keep those trucks on the road. That’s where a dispatch company like M&J Dispatch can help.
Brokering deals on your own takes time, which many small trucking companies don’t have enough of. Our dispatch services will connect you to loads faster, resulting in a significant reduction in empty miles. We can also help you avoid hazards that you might be unaware of or unable to navigate on the fly, resulting in more timely and smoother operations. Small trucking companies can benefit from dispatch services for a variety of reasons. However, we at M&J Dispatch offer more than just dispatching. We offer:
Education on how to diversify.
Help with driver recruitment.
Compliance with federal and state regulations.
Find insurance that is affordable and meets your company’s needs.
Help you to understand the importance of networking.
How to get more contracts with customer freight.
The Cons of Dispatching Services
When deciding whether to partner with a dispatch service, most small-to-medium-sized businesses will only have two “drawbacks” to consider: cost and service quality. A dispatching service is unlikely to make sense if your current and/or projected revenues do not justify hiring an outside partner. Similarly, a dispatch service may not make much financial sense if you are a small business with a client list that provides you with consistent business on consistent routes.
Another potential disadvantage to consider is service quality. Freight dispatchers, like most businesses, are not all on an equal playing field. Carriers looking for a partner should thoroughly vet their options and consider which services they urgently require. Experienced drivers on well-traveled routes may not require assistance in navigating hazards and slowdowns. Furthermore, with the advancement in technology these days, most drivers no longer need this part of the service.
About MJ Dispatch
We at M&J Dispatch, LLC are a small business whose mission is to help small trucking companies take their company to the next level. Our focus is on small trucking companies that have less than 10 trucks and are in need of finding freight at the best price. Our truck dispatchers know the business better than anyone and are experts at finding the highest paying load helping you make the money you deserve. Our team of highly trained dispatchers will take care of all the paperwork, phone calls, and payments so all you have to do is DRIVE.