Why Building Trucking Dispatch Software Is Critical for Solving Logistics Challenges

Trucking is quite a massive industry as it brings value to nearly all businesses in the US. As said by Al Pacino as Jimmy Hoffa. The Irishman,

“If you got it, a truck brought it to you. Food, clothing, medicine, fuel for homes, and industry. The day our trucks stop, America stops.”

According to IBIS Worlds data, the truckload industry is worth over $273.2 billion. In the US alone, there are 570,921 Long-Distance Freight Trucking businesses, an increase of 4.5% from 2022. This industry is also responsible for employing 1,385,716 people in the US as of 2023. Overall, the market size of the General Freight Trucking industry in the US has increased faster than the economy.

All these statistics indicate that trucking, a dominant freight mode is a huge and complex system involving countless operations. It is why logistics companies are increasingly looking to embrace digital solutions like ‘trucking dispatch software’ to help monitor truck routes and streamline other trucking operations.

This article will discuss how trucking dispatch software features can help solve logistics challenges and what benefits it will bring to businesses. But first, let’s dive deeper into the essence of transport dispatch software.

Role of Trucking Dispatch Software for the Logistics Sector

A trucking dispatch software solution is a revolution in the logistics sector. It is an irreplaceable tool in transportation management and cargo delivery as it efficiently manages and automates all essential operations.

It helps solve logistics challenges by automating and streamlining critical tasks, improving communication and coordination, and providing real-time data for informed decision-making. The software can reduce operational inefficiencies, minimize human error, and increase overall productivity by automating processes such as load matching, route planning, and driver assignment.

Additionally, the software can help increase visibility and transparency by providing real-time updates on vehicle locations, delivery status, and delivery schedules, which facilitates logistics companies to make more informed decisions and respond to any issues quickly. It leads to increased customer satisfaction, improved safety, and reduced costs. Consequently, your company’s reputation will continue to grow while you duly meet all the time commitments and improve overall delivery experiences.

5 Big Challenges Faced by Logistics Companies

According to American Trucking Association, the trucking industry is accountable for moving around 72.2% of all goods transported in the US.  With this massive accountability also comes a long list of challenges that the logistics companies have to face regularly. Let’s take a bird’s eye view at some of the most common logistics challenges:

1. Routing Hardships

While generating the most efficient routes for delivery, multiple factors are considered, such as product type, traffic conditions, delivery stops, and so on. Manual routing cannot foresee unexpected circumstances, such as adverse weather conditions or blocked roads, resulting in longer routes and delayed deliveries.

To ensure drivers are provided with safe and optimal routes, especially when delivering to multiple locations in a single journey or managing a high volume of orders, companies need to invest in modern trucking dispatch software with AI and ML algorithms. These solutions provide dynamic routing options to predict and stay ahead of unforeseen emergencies.

[Discover How We Solve AI Development Issues You’re Bound to Encounter]

2. Disconnection between Stakeholders

Having a steady line of communication between managers, dispatchers, and delivery drivers is essential to succeed in the logistics sector. However, this can be a challenge for dispatchers and third-party logistics (3PL) partners who are not a part of the internal team. A lack of synchronization in order allotment, delivery tracking, and real-time communication can reduce transparency and efficiency, negatively impacting the entire delivery process.

Dispatch software is an effective solution to this problem. It connects shippers’ dispatching software with the 3PL system, allowing all stakeholders to be on the same page and providing clarity over key delivery KPIs. This creates a seamless connection between all parties, improving efficiency and transparency.

3. Delivery Time Constraints

According to market research, an increasing number of consumers do not order again from a retailer if they experience late delivery. Additionally, the growing demand for ‘instant delivery’ and ‘same-day delivery’ has further tightened delivery windows, making it a race against time for logistics companies to sort, label, process, and assign packages to the drivers for delivery. 

To meet these demands, companies are recognizing the importance of faster delivery and are incorporating intuitive trucking dispatch systems into the logistics chain. These solutions analyze real-time data and automatically allocate tasks to available drivers, increasing productivity and allowing dispatchers to plan routes with multiple stops to execute time-bound deliveries.

4. Out-of-Loop Customers

In a manual dispatch system, it is a hard nut to crack to proactively inform every customer about their delivery status. It makes the customer handling team receive a high number of query calls. Also, customers may feel uncomfortable and distrustful without adequate information and transparency.

On the other hand, trucking dispatch software for logistics allows companies to efficiently loop the customers in the communication chain, enabling direct contact between drivers and customers. This increased transparency into the business process helps retain customers and improve the experience. 

5. Lack of Automation

Whiteboard planning, a large logistics personnel pool, and multiple calls between drivers are dispatchers are the standard practices in a manual trucking dispatch setting. Also, the driver and consignment allocation are done manually. This manual tracking of operations is often mundane and prone to errors. 

However, with the implementation of dispatch software for trucking, businesses can leverage automation to manage, control and monitor their logistics dispatching while freeing up their human resources to focus on more valuable tasks.

[You might like to learn: How to overcome the global supply chain challenges with technology?]

Top 8 Features of Transportation Dispatch Software

Apparently, if you want to face the music that logistics challenges play into your way, you must opt for dispatch software development. But before you invest in this digital solution, let’s take a look at some essential features that you should consider incorporating into your trucking dispatch software for logistics.

1. Scheduling

To start off, your dispatch software for trucking must have a scheduling feature, which makes managing the pick-up and drop-off of shipments easy by having complete visibility of the available trucks and their loading capacities.

Also, the software seamlessly re-routes any cancellations or last-minute orders without impacting the delivery timelines. Moreover, in case of any mishaps or breakdowns, the software automatically transfers the order to another available driver.

2. Automated Package Sorting

With trucking dispatch software, there is no need to manually sort through the packages and assign them to the drivers. The dispatch software will automate the entire process of assigning the delivery packages to the drivers based on their size, weight, and destination. The automated package sorting helps save lots of valuable time for stakeholders.

3. GPS Tracking

Digital dispatching software allows dispatchers to enable GPS tracking and mapping on their delivery vehicles. It makes drivers receive route optimization updates in real time, helping them to save time and fuel while performing deliveries. 

Furthermore, dispatchers can track the position of loads and gain insight into various statistics, such as the number of deliveries per day, the locations of trucks, a driver’s performance, and much more.

4. Real-Time Tracking 

Dispatch trucking software allows employees to track and manage freight movements from the start to the end of the delivery process. Here, the dispatch system works on IoT technology, which gives a 360-degree view of fleet management with real-time information. It helps customers and dispatchers know the package location, its delivery status, and estimated delivery time. In short, a dispatch platform gives customers transparency and visibility, allowing them to track their packages and stay informed about their expected deliveries. Involving the customer in the transportation journey increases their retention, enhances loyalty, and improves satisfaction.

[You Might Like: 7 Advanced Fleet Management Technologies You Must Implement in Business]

5. Automatic Notification

The cutting-edge dispatching software sends automatic notifications to the customers and dispatchers when their package is dispatched. The notification also contains detailed information about their delivery status, package tracking, expected delivery date, and driver information. In case of any change in the delivery time and process, customers and dispatchers are automatically notified, resulting in an improved customer experience. 

6. Digital Invoice

Dispatch trucking software helps companies issue digital billing and invoices, which enables customers to get a detailed view of their expenses and make an online payment for their deliveries through contactless payment gateways. The digital billing process saves time, resources, and effort, making the entire invoicing process more effective.

7. Analytics and Reports

Online trucking dispatch software for logistics provides dispatchers with visualized data about delivery times, driver performance, and customer satisfaction. This data helps dispatchers figure out the areas of the delivery chain that need to be improved to increase performance. Furthermore, it helps drivers save time and fuel while assisting customers in receiving their products faster. Ultimately, this software can help dispatchers make better decisions and ensure that customers are satisfied with their delivery experience.

8. Route Optimization

Route optimization is an integral feature of the dispatch software for trucking that helps logistics managers increase the travel efficiency of trucks. It allows drivers to set vital information such as the starting point, destination, expected travel time, and suggested duration for each stop. Additionally, drivers can add break times for eating food and taking rest during their journey. By utilizing this AI-enabled dispatch software, drivers can reach the intended location quickly by traveling through the fastest and safest route.

[Also Read: How to Build a Transportation App Like Moovit?]

Top 6 Benefits of Trucking Dispatch Software for Logistics

A robust truck dispatcher software customized with all the integral features does more than just enhance the product delivery experience. From cost-cutting to route automatization and automating operations, logistics companies can benefit heavily by investing in this digital solution. Listed below are some of the most enticing benefits of trucking dispatch software for logistics:

1. Better Communications and Visibility

With truck dispatch software, all logistics members can efficiently communicate with one another throughout the delivery process. It further contributes to customer satisfaction by allowing them to know the status of their packages.

2. Increased Efficiency and Scalability

With the trucking dispatch platform, there are no restraints on the deliveries you can perform, the carriers you can communicate with, and the jobs you can assign. It means the software helps you scale your operations over time.

3. Improved Customer Service

With a modern dispatch platform, customers can receive updates to their mobiles, connect with drivers, and report issues on the fly. It leads to better customer service and improved customer satisfaction. 

4. Timely Deliveries

An advanced dispatch platform helps companies provide timely deliveries for their customers with the help of adequate job allocation, auto-routing, good route planning, and carrier tracking. Also, auto-routing helps save time for dispatchers, drivers, and customers on the whole. 

5. Dynamic Routing

One of the most apparent benefits of a truck dispatch system is dynamic routing. It helps delivery drivers, dispatchers, and customers have updates on their delivery locations. It gives drivers up-to-date information on their delivery locations, even when they have multiple stops. Intelligent automation helps optimize the last-mile delivery system. 

6. End-to-End Automation and Cost-Cutting

As the truck dispatching system automates crucial tasks, companies can free up their resources from logistical management jobs, save labor, cut wages, and reduce costs. With the integration of the automation system, there is minimal human intervention, which further brings down the risk of human error. It will help you plan your budget wisely and avoid unnecessary expenses.

When Should You Consider Creating Your Own Tailor-Made Dispatch Software

Trucking dispatch app/software is a must-have for logistics companies to improve drivers’ performance, customer experience, and business expansion. However, when considering adopting a modern dispatch system, companies need to choose between off-the-shelf software or custom trucking dispatch software. 

Let’s evaluate the applicability of both variants.

The Off-the-Shelf Software

The off-the-shelf dispatch solution is suitable for small companies when you require managing small processes and having limited objectives. This type of digital product is often cost-effective but has certain limitations and drawbacks that can hinder progress. 

• First of all, off-the-shelf, better known as readymade software, are prone to be hacked as they don’t guarantee a high level of security. 
• Next, customer support is restricted. It means some questions of the customers remain unanswered as they can be beyond the active capability of the system.
• Lastly, the off-the-shelf software is not compatible with the unique processes. So, as you move ahead with the advanced trend, you need to create a customized one to meet those needs.

The Customized Truck Dispatch Software

Without a shadow of a doubt, customized software is the best choice for logistics companies that are far-sighted and keep a broad approach to solving their problems. Even if the customized solution costs a little more than off-the-shelf, it is worth the investment, and here is how.

• The customized solution is fully controllable. You can involve in the development lifecycle, connect with developers and make essential adjustments.
• Custom dispatch software improves your company’s chances of staying protected from information leakage and data breaches. 

You can integrate the custom dispatch software at multiple platforms of your logistics business, such as Fleet Management Software, Transport Management System, Warehousing platform, etc.

Appinventiv: Your One-Stop Solution for Efficient Logistics Operation

Appinventiv is a leading logistics software development company that has created myriads of ruling software across industries. Our skilled IT experts help you create fully customizable trucking dispatch software for all types of platforms, including Android and iOS, which helps you scale your operations over time. You will get timely deliveries, dynamic routing,multi-drop deliveries, automated processes, real-time route optimization, e-tickets, and much more in a single platform. In straight terms, Appinventiv will help you realize the proper implementation of your custom dispatching software concepts. 

Let’s give you a little more information about Appinventiv’s expertise in creating logistics solutions. 

Appinventiv is a competent outsourcing IT provider specializing in developing multiple sorts of applications and software for different domains, including logistics and transportation. Our custom-made solutions help startups, SMBs, and enterprises improve their modus-operandi and win over the competition. The outcome is visible in our portfolio containing several use cases of market leaders.

Partnering with us, you will get the following:

• Full-fledged digital platforms that will seamlessly integrate into your business workflows and scale operations. 
• Transportation management system (TMS), Logistics Management Software (LMS), warehouse management systems (WMS), SCM, truck dispatch software (TDS), and other logistics solutions to streamline operations on different segments of the supply chain.
• In-depth consultation from accredited professionals for all your queries concerning the development and implementation of logistics solutions.
• On-demand logistics app development service – legacy system modernization, creating a digital solution from scratch, updating the existing one, and so on. 
• Testing, after-release support, and maintenance by certified and agile-minded IT experts. 

Planning to build a custom trucking dispatch software to solve your logistics challenges and expand operations? You are just a step away from bringing your imagination into reality. Contact us today, and our skilled personnel will breathe life into your dispatch software concepts by creating fully customizable solutions as per your needs. 

Let’s join hands to realize digital transformation and take your business to new heights. 

FAQs

Q. What are the benefits of using trucking dispatch software?

A. Trucking dispatch software can provide a number of benefits for your business. It can help you streamline your operations, reduce costs, and improve customer service. Additionally, it can help you manage your fleet more efficiently and provide real-time tracking of vehicles, allowing you to monitor their location and performance. This can help you optimize routes and reduce fuel costs. It can also help you manage driver schedules and ensure that they are taking the most efficient routes.

Transport dispatch software can also help improve customer service by providing customers with real-time updates on their shipments, allowing them to track their orders and receive notifications when their shipments have arrived. This can help you improve customer loyalty and retention.

Overall, trucking dispatch software can help you streamline your operations, reduce costs, and improve customer service.

Q. How does trucking dispatch software help streamline logistics operations?

A. Trucking dispatch software is a powerful tool that can help streamline logistics operations. It provides a comprehensive view of the transportation process, allowing users to plan, monitor, and manage their operations in real time. 

Furthermore, it helps track shipments, plan routes, manage driver schedules, and generate reports. It also helps reduce paperwork and administrative costs, as well as improve communication between drivers and dispatchers. 

By providing a centralized platform for managing logistics operations, trucking dispatch software can help improve efficiency and increase customer satisfaction.

Q. How does trucking dispatch software help reduce costs and improve profitability for logistics companies?

A. Trucking dispatch software is an invaluable tool for logistics companies, as it helps them reduce costs and improve profitability.

The software helps streamline the dispatch process, allowing companies to manage their fleet more efficiently. It also helps them optimize routes and track driver performance, helping them save money on fuel, labor, and other costs. Additionally, the software can help them better manage customer orders and shipments, allowing them to forecast demand more accurately and better plan their operations. 

With all these features, trucking dispatch software can help logistics companies reduce costs and improve their overall profitability.

Q. How can trucking dispatch software improve the accuracy and efficiency of dispatch processes?

A. Trucking dispatch software helps improve the accuracy and efficiency of dispatch processes through its multiple features like real-time route optimization, timely deliveries, dynamic routing, multi-drop deliveries, automated processes, digital billing, and so on. 

This software helps streamline the delivery and provides real-time updates on the status of orders. It can also help reduce paperwork and improve communication between drivers and dispatchers.

Additionally, with the use of this software, dispatchers can easily track the progress of shipments, allowing them to quickly identify any issues that may arise and take the necessary steps to resolve them. 

THE AUTHOR

Sudeep Srivastava

Co-Founder and Director