In-House vs. Outsourced Dispatch (and Brokers): What’s Best for Your Business?

Managing a trucking business requires good dispatching services. This keeps trucks moving, ensures timely deliveries, and improves customer relations. But should you handle truck dispatch services yourself with an in-house dispatching team, or should you use outsourced dispatch services from a reliable company? Each option has its own benefits and challenges.

The Meaning of Dispatching in Logistics

Dispatching is essential in the logistics and trucking industry, ensuring smooth processes. This aspect refers to coordinating and planning the movement of freight. Whether monitoring load boards, negotiating with freight brokers, planning routes, or managing delivery timelines, truck dispatch services keep transportation businesses running efficiently.

A dispatching company helps businesses like trucking companies and independent owner-operators manage their dispatch needs. They provide dedicated dispatchers who can handle all aspects of trucking operations, from handling paperwork to managing delivery services. By outsourcing dispatching, companies can focus on their main operations.

There are two options for managing dispatch: in-house and outsourced truck dispatching. In the first case, a company has an in-house team that manages all related tasks. This option can involve hidden costs, such as hiring additional specialists, managing administrative tasks, and handling challenges like delays or time-sensitive deliveries.

Dispatching outsourcing to a third-party logistics (3PL) company can ensure cost savings. Outsourcing dispatching services means a reliable partner who takes care of your operations, saving time and increasing efficiency.

The expert team of freight dispatchers handles everything from securing loads from shippers or freight brokers to planning routes, while the companies can focus on maintaining their operations.

For owner-operators and transport businesses, dispatching outsourcing can help them meet business goals without hiring additional employees. Professional dispatchers can also help manage customer retention by ensuring reliable transportation services, reducing delays, and increasing efficiency.

In short, dispatching is essential in any trucking operation. Efficient dispatching services can improve customer satisfaction, reduce operational costs, and ensure timely deliveries. Whether you choose an in-house team or outsourced services, the key is to find an option that fits your business needs and requirements.

In-House Dispatching: The Benefits and Challenges

In-house dispatch means managing your dispatching operations with an internal team or alone. This approach has some benefits, but it also presents challenges.

For instance, internal dispatching offers more control, while involving additional costs and challenges. Thus, assessing the benefits and potential issues is important before making the final decision.

Benefits of In-House Dispatching

• Full management. With an internal team, you have complete management over handling your dispatch operations. You can adapt it quickly to changes, adjust plans, and make decisions without waiting for an external party. This can be important if you have specific needs or work in a niche market.
• Close to your business. An internal dispatching team understands the inner workings of your business. They’re familiar with your customers, delivery requirements, and transport routes, which helps ensure that things run smoothly.
• Better communication. With a company-based dispatch team, communication is more direct and immediate. If issues arise, such as last-minute changes, your team can address them immediately. There’s no waiting for an outside company to respond.
• No outsourcing fees. One of the main advantages of in-house dispatching is that you don’t have to pay fees for an outsourced dispatch service. However, keep in mind that you still have expenses related to salaries, benefits, and technology.

Challenges of In-House Dispatching

• High costs. While internal dispatching can save you money on outsourcing fees, it involves high upfront costs. This includes paying salaries, providing dispatch systems, and maintaining technology like route planning software. These costs can quickly add up, especially if you need specialized equipment or employees.
• Limited resources. One downside of the in-house option is that your team may struggle during busy periods. A small in-house team might not have the capacity to handle the increased volume of deliveries, find loads, or manage delivery services on tight deadlines.
• Managing everything. In addition to dispatching, your team may be responsible for other administrative duties, such as handling paperwork, managing customer calls, or maintaining your dispatch system. These additional tasks can be overwhelming and affect overall efficiency.
• Risk of mistakes. With a small in-house team, there’s a greater risk of errors. A team that’s overworked may make mistakes in route planning, finding loads, or managing time-sensitive deliveries. These errors can negatively impact your customer relationships.

Outsourced Dispatching: What It Brings to the Table

Outsourced dispatching means hiring a dispatching company to handle your needs instead of managing them yourself. Many trucking companies and owner-operators choose this option because it helps them reduce time and operational costs and focus on their core business. However, like any solution, it has both benefits and challenges.

Before deciding, trucking businesses should consider their business goals, budget, and need for partners to ensure stable operations.

Benefits of Outsourced Dispatching

• Cost savings. By outsourcing, you don’t need to worry about paying salaries, providing training, and investing in a dispatch system. You only pay for the truck dispatch services.
• Expert team and advanced technology. A reputable company has a dedicated team of dispatchers who know the industry well and have established connections with freight brokers and shippers. They understand finding loads, planning the best routes, and handling time-sensitive or expedited deliveries. They use multiple load boards and real-time visibility tools to track shipments and avoid unexpected delays.
• Flexibility to grow. With dispatch outsourcing, you can adjust your services based on your business goals. During peak periods, a dispatching company can provide extra support without you needing to hire new employees. This helps trucking companies increase their scalability without added stress.
• More time for your business. Running a trucking business means dealing with various tasks like customer calls, handling paperwork, and managing delivery services. A dedicated dispatch team takes care of these, so you can focus on growing your company.
• Reliable support. Many dispatch services provide constant support. This ensures uninterrupted communication with drivers and clients, improving customer satisfaction and stable operations.

Challenges of Outsourced Dispatching

• Less power. When you outsource your dispatching, you rely on a truck dispatching company to make important decisions. While they are experienced dispatchers, you may not have as much supervision over things like customer relationships, scheduling, and problem-solving as you would with an in-house team.
• Potential hidden cost. Although outsourcing truck dispatch services can lead to reduced expenses, it can involve additional costs. Additional fees for extra loads, last-minute changes, or special requests can add up. It’s important to work with a reputable company that offers clear pricing.
• Finding a suitable partner. Not all dispatching companies offer the same level of service. Some may lack experience, use outdated dispatch systems, or fail to provide uninterrupted communication. Choosing the right truck dispatching company is key to avoiding poor service that could hurt your business.

Comparison: In-House vs. Outsourced Dispatching

Choosing between in-house dispatching and outsourced dispatching depends on your needs. Both options have pros and cons, so choosing the one that best fits your business goals is important.

Factor	In-House Dispatching	Outsourced Dispatching
Cost	High, involving salaries, training, software, and other costs	Lower involves fees for the truck dispatch services
Flexibility	Scaling up requires hiring and training new staff	Adjustable services based on business goals
Risk Management	You handle unexpected delays and dispatch needs	Experienced, qualified dispatchers help reduce errors
Supervision	Full command over dispatching, customer relationships, and decision-making	Less direct command with more reliance on a truck dispatching company
Technology and Expertise	Requires investment in dispatch systems and ongoing training	Access to expert teams with the latest dispatch technology without extra costs

Thus, in-house dispatching may be a better choice if you want full supervision and have the budget for a dedicated dispatch team. At the same time, if you want fewer expenses, flexibility, and access to expert dispatchers, outsourcing can help improve efficiency while reducing workload.

Logity Dispatch: A Reliable Partner for Outsourced Dispatching

Running a trucking company is not easy. Managing dispatch processes, finding loads, and ensuring on-time deliveries takes a lot of effort. At this moment, Logity Dispatch can assist. We provide professional dispatch services so you can focus on driving and growing your trucking operations.

Why Choose Logity Dispatch?

• Reliable and transparent pricing. Hiring and training an in-house team can be expensive. With Logity Dispatch, you pay for the truck dispatch services you need, helping you cut down on operational expenses.
• Experienced team. Our qualified dispatchers have industry experience and know how to plan routes, find the best loads, and handle unexpected issues or delays to keep your operations running smoothly.
• 24/7 support. Unlike an internal team that works during regular business hours, our dedicated dispatchers are available around the clock. This ensures uninterrupted communication with drivers and customers, leading to a better customer experience.
• Advanced technology. We use modern systems to provide real-time tracking of your shipments. This helps you track delivery timelines and avoid delays.
• More time for you. Handling customer calls, paperwork, and administrative tasks can take up your time. Outsourcing to Logity Dispatch gives you ample time to focus on expanding your business and achieving your goals.

Whether you are an owner-operator or manage a fleet, our truck dispatch services can help you improve efficiency, increase customer retention, and reduce stress.

Conclusion

Both in-house and outsourced dispatching have pros and cons. While an in-house team gives you more supervision, it is more expensive and requires more effort to manage. Dispatch outsourcing can bring fewer expenses, better efficiency, and access to expert dispatchers, but it may offer less direct command. 

Logity Dispatch offers a balance of fair pricing, flexibility, and smooth operations. Whether you are an owner-operator or run a fleet, choosing the right dispatch service can help your trucking business grow and succeed.