How to Start a Freight Dispatching Business?

The field of operation in trucking companies involves many factors, and freight dispatchers are among the most important and highly skilled.

 

If you love a clean desk and paperwork, enjoy solving puzzles, and want to take responsibility for supplying lots of people, starting a freight dispatching business can be exactly what you should do.

 

Understanding the freight dispatching landscape

 

Understanding the principles of freight dispatching before going deeper into how to begin your own business is essential.

 

This involves identifying the principal actors in the industry, the services dispatchers offer, and those relevant skills one needs to have.

 

Key players

 

• Shippers: The manufacturers and retailers that require moving merchandise from one place to another.
  
  

• Carriers: Those over who ownership of the trucks lies, though they are leased out to third-party companies.
  
  

• Freight brokers: Freight brokers are those who bring shippers and carriers together during regular business transactions.
  
  

• Freight dispatchers: They are staff who work for carriers, handling shipments and drivers.

 

Also, read Freight broker vs. dispatcher - understanding the differences

 

Services offered by freight dispatchers

 

• Finding and booking loads: Coordination involves finding shipping loads from shippers or freight brokers and costing and contracting.
  
  

• Route planning and optimization: They establish working networks about factors such as the distance between two points, limitations to traffic on the roads, and the time frame within which the consignment must be delivered.
  
  

• Driver management: A dispatch office organizes working hours for drivers, determines their workloads, and provides drivers with necessary information regarding their assignments.
  
  

• Shipment tracking: One of the examples is real-time shipment tracking, which means using GPS tools with other devices to track the shipment's state and possible problems.
  
  

• Communication: Dispatchers remain in close contact with the drivers, shippers, and anyone else who is a part of the shipping process.
  
  

• Documentation: They undertake various papers, including bills of lading, invoices, and permits for certain businesses.

 

Essential skills for freight dispatchers

 

• Communication skills: For drivers, shippers, and brokers, the most crucial part is addressing all your communication needs.
  
  

• Organizational skills: Dispatchers must be somewhat organized to handle multiple shipments, schedules, and driver requests.
  
  

• Problem-solving skills: As problems are unpredictable, critical thinking skills are needed to solve certain situations.
  
  

• Technology proficiency: You must be familiar with dispatching software like GPS.
  
  

• Customer service skills: It becomes vital for dispatchers to have good relations with their clients and to solve the complaints from the client side.

 

Steps to starting your freight dispatching business

 

1. Gain industry knowledge and experience

 

Although introductory regulation courses are available in dispatch schools, employers often seek dispatchers with some trucking or logistics business background.

 

Lack of experience: Look for jobs at low positions within certain trucking firms to understand how the firms operate.

 

2. Obtain necessary training

 

Several options are available for dispatcher training:

 

• Community colleges and vocational schools: Provide programs with certificates or diplomas for dispatching or logistics.
  
  

• Online courses: This is to improve the accessibility and availability of training.
  
  

• Company training programs: While it may be challenging to do so, some of the trucking companies present have training programs that train potential dispatchers.

 

3. Choose a business structure

 

Choose the business structure for the legal formation of your business, which can be a sole trader, partnership trader, LLC, or incorporated business.

 

When choosing, you need to factor in the locus of control, like liability and taxation.

 

4. Secure funding and resources

 

Starting a dispatching business requires some initial investment.

 

Explore funding options like personal savings, small business loans, or investors.

 

Essential resources include:

 

• Computer and software: Contact a reputable supplier of a good quality computer for dispatchers, efficient dispatch software, and other equipment.
  
  

• Communication equipment: Make sure you have a proper phone and dial-up or any other kind of internet connection for communication's sake.
  
  

• Office space: Provide yourself with a permanent place to work, whether it's your room in your home or a rented office.
  
  

• Insurance: General and professional liability are some insurances that must be obtained.

 

5. Develop a marketing plan

 

Create a marketing strategy to attract clients. Come up with marketing tactics to get people to patronize your business.

 

This may include:

 

• Online presence: Create a business-like website and use appropriate social networks related to the business.
  
  

• Networking: Exhibit at trade shows and meet other clients, most of whom are in the business world.
  
  

• Referrals: Remind clients who have been relieved by your services to recommend your services to other people.

 

6. Build relationships with carriers

 

Target the people who drive trucks, own their vehicles, and need dispatching services, as well as attend loading boards, online forums, and specific events to build your contacts.

 

• Set competitive rates:

 

Conduct a market analysis of the industry and use this to set fair and realistic but reasonable prices for the services you offer.

 

• Provide excellent customer service:

 

Get to know the client better by offering outstanding customer relations, timely communication, and efficient dispatching services.

 

Ready to optimize your trucking operations with expert dispatch services?

 

Dispatch services provided by Universal Transit include services for carriers - big or small.

 

Our team of dispatchers, utilization of artificial intelligence, and focus on the success of carriers can assist with increasing your revenue and the effectiveness of your company.

 

Please drop us an email or call to find out how we can help you meet your targets.