Tag Archives: back office

Dispatcher Info

1st Form In Dispatching “The Contract”

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The first dispatching form you need before taking on clients is “your service contract”.  Take a little time to list on a piece of paper what you are willing to do in your dispatch business, how much money you will charge (% or flat rate), how you will get paid (paypal, credit cards, paper check), how long you will wait to get paid. 

Next.  Determine the things you will require new your client to do for your company while you are contracted, example:  the assignment of a  a certain number of trucks to be dispatched exclusively by your company. (I suggest at least one).  This may seem like a little thing, but I have learned from experience, if you do not spell things out in plain English in your contract, you’ll have grief and probably mess-up your cash-flow.

The last thing that you must have on your contract is “signatures”.  Without the signature you don’t have a contract, and you are working for free.   Get a signature on your contract.  You should sign, and your client should sign.  It is also a good idea to have a service start date on the contract.  The contract is for your protection as a business owner.  No, you may not need to go to court about a breach of contract, but if you do need to, have a valid contract, get the signatures.  Do not start working for ANY client without it.  I don’t care if it’s your brother.  No contract, no work.

Below is a list of the technical stuff you’ll need included in your contract:

  • Your company name and address
  • Your Clients name, MC#, contact info
  • The duration of the contract
  • Is it going to be an exclusive service?
  • Your responsibilities as a service provider.   (You’ll need a detailed accounting of what your service will give for what you are going to ask your client to pay for.
  • Your fees
  • Your payment method and schedule
  • Your clients responsibilities
  • A signature line for both parties
  • The date the contract will be in effect
  • Is there going to be a trial period and how long
  • The expiration date of the contract

You may be able to get a pre-made contract form from stores like Office Depot, or a stationary shop.  The important thing to remember is that you spell out everything you want in the dispatch service contract.  If it’s not there write it in.   It doesn’t need to have all that legal gorgon if you are writing your own contract.  Make sure the conditions of the contract CLEAR and indicates that both parties agree to the conditions.  Remember the court shows where the plaintiff goes in and all he has is a signed piece of paper.  Well, get the signature, and deliver what you say you will.

Dispatcher Info

Owner Operator and Company Drivers

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Working with Owner Operators and Company Drivers for the beginning dispatcher.  If you know a truck driver who is working for a company (other than himself) he is referred to as a company driver.  If the company driver has his own truck, and trailer he may want to venture away from the company he is working for and begin working for himself.  If he is working for himself, he is referred to as an Owner Operator.  If he has his own authority and insurance he is able to run and book  freight loads independent of the company as long as he is not under contract with the company.

Question:
My husband has a truck and I want to dispatch him. How do I begin?

Answer:
This is a popular question. For the dispatcher, if you already have a truck to dispatch, you are half way to having a successful dispatch business.
Here are a couple of questions for you.

  • Is he a company driver
  • Is he under contract with the company he is working for

Most company drivers are under contract to the company that he is working for.  He will need to review his contract to see if he can carry freight loads independent of the company. Most companies will want the driver to be exclusive to them. They do not allow “trip” drivers. A trip driver is not under exclusive contract, and can get his own freight loads from other shippers.   If this is the case, the truck driver will need to go to his local DMV, and register his truck “company” as an independent Owner/Operator, and get what is called a MC (motor carrier) number. The next step is to get his own authority to transport freight either interstate, or intrastate. The next item that he will need is insurance for his truck company (business). The truck driver can get most of this information between the DMV and the Federal Motor Carrier Administration (http://www.fmcsa.dot.gov/registration-licensing/registration-licensing.htm ).

It is the responsibility of the Driver/Owner Operator (also known as the truck company) to take care of the these steps.  Your responsibilities as the dispatcher should start after he/she has taken care of the FMCSA, and he is legal to move freight as an independent owner operator.

  • The drivers starting point…. Read your company contract.
  • Talk to the DMV or apply online for your MC, etc. (FMCSA)
  • Contact your insurance Agent
  • Activate your authority
  • Start looking for your own freight or…hire a qualified dispatch service (they take care of all the paperwork that you will need to book freight loads as an independent owner operator.   A good dispatch service will help you grow your business in such away that you are both collecting good pay for the work that you both do.)
  • You may have to quit your JOB before you can actually start driving for yourself.

There you have it.  I hope this information was helpful for the owner operator, the company driver and the dispatcher.  Though, if you want to take on the extra duties of filing the paperwork for the driver, you can.  Know this, it would be easier for the driver to take care of this as he already had the experience of registering his truck with the DMV.)  If he already has an MC# (Motor Carrier) or a USDOT# (his authority to transport freight intrastate or interstate) he is more than halfway there.  Your duties as a dispatcher is to keep his truck loaded.