Every year, the amount of transported cargo increases at a frenetic pace.
The American Trucking Association confirms that freight volume will increase by almost 30% by 2026.
This means that many transportation and logistics firms will have to greatly expand their staff to keep up with the growing workload.
Such changes mean additional costs; paying new team members can significantly affect company budgets.
As just one example, according to the latest data from Payscale, the average pay for a trucking and transportation fleet dispatcher is about $48,000 per year.
However, there are alternatives for logistics and transportation companies looking to save money: digital solutions such as transportation dispatching software.
In this article, we will explain how dispatching tools may make your staff more productive and save your business from unnecessary expenses.
Here are two of the most solid benefits of implementing a dispatching app:
Dispatchers often have to do a lot of multitasking, making their workload too large.
Digital tools can help automate workflows so your employees will be able to spend their precious time on more important work activities rather than repetative tasks.
Getting into dispatch software now may help you beat the competition.
Many transportation and logistics companies fail to implement newer and more complex technologies simply because of a reluctance to change their way of operating.
According to the latest survey by JDA, in 2018, one of the biggest challenges for innovation in the logistics industry was resistance to change (29.36%).
Firms that resist changing lose the opportunity to make their staff more productive and efficient, while your dispatchers will be able to use their time more productively, performing more ambitious tasks.
If the volume of freight your company handles is growing every year, dispatch software may help you save a lot of money, thanks to higher productivity on the part of your existing dispatchers.
Ultimately, this can save you tens of thousands of dollars it would cost to hire additional help.
One of the most significant activities of the dispatcher’s job is scheduling drivers so goods are picked up and delivered to vendors or customers on time.
Because dispatchers are often busy with multiple tasks, they may not have time to update or optimize the schedule of a particular driver.
Because of this, a situation may occur when the driver has already arrived at the required destination but wastes time waiting for the goods to be prepared for shipping.
The survey by DAT Solutions found that nearly 63% of drivers waste more than three hours at the shipper’s dock every time they’re getting loaded and unloaded.
As we can see, most of the respondents often have to wait. (Source: dat.com)
Dispatching tools enable dispatchers to alter schedules on the fly and automatically update drivers using, for example, automated text notifications.
Also, in-vehicle telematics will help dispatchers keep track of drivers throughout their day so they can quickly assign the most closely located drivers to emergency jobs.
Since a huge part of the functionality of dispatch tools comes from tracking the status and location of drivers, it’s quite reasonable to say that the two most crucial components are easy mapping and GPS tracking features.
These features gather traffic predictions and advanced routing data to make sure that drivers arrive at all planned locations on time.
Constant access to the current traffic conditions allows dispatchers to quickly adapt and provide drivers with the best possible routes.
GPS tracking and mapping offer many advantages to logistics and transportation businesses, but it all boils down to having real-time control over the fleet.
Such features provide users with a much more efficient approach to route management and save your dispatchers’ time.
For all logistics and transportation businesses, ensuring accessibility and constant communication across all channels is essential. That’s the reason mobile tools play a critical role with dispatch software.
Such solutions allow drivers to both get significant data and quickly report their progress to the company’s office.
Establishing solid two-way communication channels this way allows dispatchers to quickly inform drivers and technicians of any issues.
In addition, dispatchers can share data on travel routes, customers, or anything other information that might be important.
With data instantly visible to dispatchers, the chance of errors is reduced as well.
As the quantity of transported goods grows every year, logistics and transportation businesses will have to hire new employees to keep up with the pace of work.
Salaries of new specialists may seriously affect the company budget, since hiring even one employee may cost tens of thousands of dollars annually.
However, there is one way to prepare for change and reduce potential costs.
Business owners can use digital technologies as a way to save money and get a competitive advantage. For instance, they may implement transportation dispatching software.
In the article, we explained how dispatching tools may make your team members work more effectively, and thus increase your staff’s ROI.
We also explained which features can help you.
Here are three features of transportation dispatching tools that may directly affect the productivity of your dispatchers:
If you want to learn more about the capabilities of transportation dispatching software or get expert advice on how technology can be applied to your business, feel free to contact us now.