In the long-haul full truckload (FTL) industry, dispatchers have traditionally relied on manual processes and years of experience to navigate a complex regulatory landscape, fluctuating fuel prices and evolving customer demands.
While functional, this approach is far from optimal, putting pressure on dispatchers and leading to inefficiencies and missed cost-saving opportunities.
But this is finally starting to change. The logistics landscape is undergoing rapid digital transformation, and the dispatcher’s role is no exception. No longer a route and schedule coordinator, the modern dispatcher is evolving into a data strategist, harnessing technology to optimise fleet operations and drive efficiency. So, what technologies are driving this change? And how can we expect the dispatcher’s role to evolve further?
From dispatcher to data strategist: The power of predictive analytics
In the past, dispatchers had to scramble to gather information from various sources in order to estimate disruptions (e.g. weather forecasts, GPS and messaging applications). Often, they relied on a reactive ‘firefighting’ approach, using manual processes to calculate and recalculate available driver hours and ETA.
However, predictive analytics – such as utilising AI and machine learning to identify the likelihood of future outcomes based on historical data – is transforming dispatcher operations. Thanks to this, dispatchers can forecast potential disruptions, such as congestion, adverse weather events or vehicle maintenance requirements, and preemptively adjust routes, schedules, and resource allocation. Data suggests dispatchers see time-savings of 25-45% from the automation of itinerary monitoring and recalculation.
Predictive analytics tools transform dispatchers into proactive data strategists, allowing them to play an active role in boosting the bottom line by minimising delays, reducing operational costs and enhancing customer satisfaction.
Data-driven decisions: Real-time insights
The same FTL long-haul trip can have hundreds of different execution plans depending on driver availability, day of the week, time of year, planned roadworks, customer requirements and more. The possibilities are endless. Experienced dispatchers are great at putting together feasible execution plans considering these factors. However, relying on real-time data is the best way to make an optimal choice.
Real-time data is only useful if companies have the tools and resources to analyse it and action the resulting insights. Dispatchers are perfectly placed to help maximise the power of real-time data. They just need the right tools.
Thanks to recent advances in AI and ML, algorithms are emerging that simultaneously consider commercial tasks (loading, unloading, secure parking, etc.), non-commercial tasks (parking, refuelling, border-crossing, etc.), driver regulations and route planning to create the ‘ideal’ trip execution plan which is a game-changer for dispatchers. For instance, recent data indicates that dispatchers can save an average of 2.5 cents per litre simply by optimising refuelling, given that fuel prices differ by up to €0.60 per litre across Europe. This might seem small, but it adds up to €30,000 in monthly savings for a fleet of 500 trucks.
Some compare these algorithms to a ‘digital version’ of an experienced dispatcher’s brain. But the truth is much more nuanced. They won’t replace dispatchers, but enhance their capabilities and empower them to make better decisions based on real-time data.
What’s next for dispatchers?
The dispatcher’s role is evolving from a tactical executor to a strategic orchestrator of complex logistics networks. In short, the digital dispatcher isn’t just a trend – it’s the future of logistics.
The next era of dispatching lies in embracing technologies like AI and ML to automate routine tasks and analyse vast datasets. To gather the data needed for AI and ML algorithms, we’ll see greater use of IoT sensors on trucks, enabling dispatchers to monitor vehicle performance in real time, predict maintenance needs and prevent costly breakdowns.
The above technologies free dispatchers from tedious manual calculations, allowing them to focus on higher-level strategic decision-making. By embracing them, they can unlock new levels of efficiency, productivity, and customer satisfaction, ultimately driving the success of the business and the entire industry.
About the Author
András Kovács, Director of Fleet Products at Transporeon, A Trimble Company. At Transporeon, a Trimble company, our mission is to bring transportation in sync with the world. We power the largest global freight network of more than 1,400 shippers and retailers and more than 150,000 carriers and logistics service providers. Every day they execute more than 110,000 transports on our platform and book more than 100,00 dock appointments for loading and unloading. In the course of one year, roughly €55bn in freight is being processed on our platform. Our leading transportation management platform connects all actors along the supply chain. It facilitates collaboration between the different parties, helps to automate manual processes and provides valuable real-time insights. The modular Application Hubs solve specific logistics challenges and range from freight sourcing over transport execution and dock and yard management to freight audit and payment. Data hubs provide insights into logistics operations, market developments and carbon emissions, next to ensuring transparency in the supply chain through visibility. Our platform works across all geographies and all modes of transportation, empowering logistics teams to move, manage and monitor freight.
