Every business needs to move goods between locations eventually, whether it’s at point A and point B or in different directions. There’s no avoiding it, so it pays to know how to run logistics properly.
One huge part of that is the freight broker vs dispatcher distinction. What’s the line between a broker and a dispatcher?
Why are they so essential to your business? And how can making a call one way or the other benefit it?
That’s what we’ll be drilling into below. So keep reading to learn more.
What is a Dispatcher
A freight dispatcher is responsible for managing the day-to-day operations of a trucking company. This includes dispatching loads and tracking trucks.
A dispatcher is responsible for ensuring that those loads are delivered safely and on time. Also, they are responsible in maintaining communication between the driver and the customer.
What is a Freight Broker
A freight broker is primarily responsible for matching loads with available trucks. They typically work with a large network of carriers and shippers to find the best possible match for each load.
Differences in How They Make Money
When it comes to making money, freight brokers and dispatchers have different approaches. Brokers typically work on commission, charging a percentage of the total shipping cost. Dispatchers, however, usually charge a flat fee for their services.
Commission-based pay can be more lucrative for brokers, but it also means that they’re more likely to take on higher-risk shipments. On the other hand, freight dispatchers tend to be more conservative with their shipments, but their flat-fee pay structure means they don’t have the same earning potential as brokers.
Freight Broker vs Dispatcher: Their Motivation
A dispatcher is responsible for routing, tracking, and expediting freight shipments. On the other hand, a freight broker like ITG Transport is responsible for the marketing and sale of transportation services. Both brokers and dispatchers play an essential role in the trucking industry, but their motivation is different.
A dispatcher is focused on efficiency and ensuring that shipments are delivered on time. On the other hand, a freight broker is motivated by sales and commission. While both brokers and dispatchers need to be knowledgeable about the trucking industry, dispatchers need to be more detail-oriented.
Involvement in Admin Work
A dispatcher is responsible for the administrative work that goes into organizing the transportation of goods. A freight broker is responsible for the coordination and negotiation of shipping contracts. The main difference between the two is that a dispatcher works within the company to which they are assigned, while a freight broker is an independent contractor.
Work With the Best Freight Brokers for Your Business
As your business expands and caters to other locations, you need the best transportation services. This ensures that your customers receive their orders quickly and in the best condition.
Freight brokers and dispatchers are two crucial figures in the trucking industry. They both work to connect truck drivers with shippers who need freight hauled.
While their jobs are similar, there are some key differences between them. Knowing the scope of freight broker vs dispatcher will allow you to understand their scope and expertise better.
Take some more time reading through the other content we have on our site. You’ll surely find additional valuable information for your business.