08 May Why Should Owner Operators Utilize a Dispatching Service and how it can Maximize Profits?
In the transport and logistics world, time is money. Businesses want to maximize profit and minimize spending. Margins can be tight yet if a company can become more efficient, they stand to make bigger profits.
Using a dispatching service can help businesses maximize their profits. They are quite simple in how they work, and most are on the small scale rather than the larger scales that you might have heard of, such as the likes of Uber dispatchers.
How Does a Dispatching Service Work?
In the past, when a company wanted to assign a task to a vehicle, they had to telephone numerous employees and drivers to see if they are free and can carry out the task. They would then carry out the task that they were assigned. But, what used to happen is that the company would all of a sudden have several tasks that needed to be assigned and vehicles could end up crossing paths and not taking the shortest routes or the company using the nearest available vehicles. Then dispatching services came along.
Dispatching services make sure that they have all of the logistical information and the lists of the jobs that need to be done and can allocate the most efficient vehicles and routes as quickly as possible. The process begins when a call comes through from a customer where the dispatcher has negotiated an agreed upon rate for transporting the load, and the dispatcher then outlines the best way to get the goods from A to B. Next, the dispatcher can then inform any drivers or fleets of their task and the job is then carried out with constant communication and tracking of the vehicles to make sure the whole process runs smoothly.
How Do Dispatch Services Maximize Profits?
The main way that owner operators and carriers maximize their profits through using dispatching services is that the drivers do not have to pull over from their current tasks to find out information on new jobs and tasks. The drivers can continue to drive as the tasks come in already assigned to them from the dispatcher.
With the drivers continuing to drive, time on the road is not lost. I started this blog post with the old adage that ‘time is money’, and so in this case, it certainly is. The quicker goods are transported to locations, the quicker the job is completed and, as such, the drivers can move on to the next allocated task from the dispatcher. But it is not only time that is saved. With more efficient deliveries, fewer drivers might be needed to carry out tasks as employees spend less time carrying out the tasks. This also means that the company can use less gas, travel fewer miles and, as such, there is much less daily wear and tear on the vehicles.
Many of large dispatch servicing companies today use automated digital systems. However, the best dispatch services still have people at the heart of their operations. Saving time and money is optimum. But putting people at the core of any dispatch organization is absolutely the key to maximizing profits.