Dispatch management is a hot issue for truckers. Balancing the schedule preferences of your drivers versus the load assignments given by the dispatcher isn’t easy for trucking operations to stay profitable. What’s it costing your company to retain truck drivers and keep them happy? Ten years ago, company drivers and independent operators didn’t have the option to refuse a load because they didn’t like the route. Back then, the driver accepted the load or was free sit at home for a few days as an attitude adjustment. With career truck drivers retiring and new drivers aware of the great demand for their services, carriers have lost their ability to enforce compliance and find themselves appeasing drivers to promote retention.
Driver shortages are here to stay
In 2015, driver
shortages were estimated to reach 48,000, up from a shortage of 38,000 drivers
the prior year, according to analysis by the
(ATA). Even greater numbers of truck driver shortages are expected in 2016 and
often remain in their fleets because their schedule preferences are honored. The
situation may appear that driver A was paid more for a load than driver B. The
reality is the dispatcher had a hot load and driver A was scheduled to be off
but came in as a favor. Driver B’s perception is that he or she is getting paid
less for every load than other drivers. In opposition, the dispatcher may have
assigned the load to their preferred drivers who they may dispatch to first,
leaving the least favorite drivers with the worst loads. Eventually, that
driver will leave.
At the end of the day,
preferential treatment of the dispatcher to certain drivers can lower fleet
growth and erode profitability.
Improving the driver dispatch process
At Sphere, we assist trucking companies and fleets to optimize their dispatch operations without reinventing
the wheel. We do this by working with your current systems, such as transportation
management systems (TMS), mileage and routing software, or other combination of
applications, and applying business rules that allow for customization to the driver’s
preference while maximizing your asset potential. This means the dispatcher’s
ability to plan loads around their preferences for the driver isn’t part of the
equation, unless the solution is the most efficient or profitable use of assets
dispatch management solutions by
, you can rest easy knowing you are doing more to increase
revenues through improved fuel and asset optimization. And, importantly,
profitability comes down to people: by retaining your hard-won drivers with their
schedule preferences, driver satisfaction rates are boosted.
Here is an
example of how losses can mount without optimized dispatch: if each driver
generates $100,000 worth of revenue per year and 5 leave due to driver or
dispatch preference issues, your company has just lost $500,000 this year.
Since you will lose another 5 drivers next year, you are at a million dollar
loss over 2 years. This is not factoring in customers who may be lost due to
inability to cover loads.
A 30 minute no obligation demo could help reduce your operational spend