The general trucking industry requires a robust workforce to facilitate the vast range of moving parts it contends with daily. Truck dispatchers play a very vital behind-the-scene role as well as help bridge the gap between customers, drivers, and owner-operators. Also referred to as freight dispatchers, truck dispatchers make sure drivers or fleets have loads to deliver, stay on schedule, and meet customer requirements.
Truck dispatchers aren’t just for large fleets; they can help small motor carriers aiming to grow their business. Like so many jobs in the freight industry, dispatching can be lucrative. It takes a keen eye and an organized mind to be successful in the role. If you have these qualities, then this might be a career worth pursuing.
Steps on How to Write a Truck Dispatcher Business Plan
Table of Content
1. Executive Summary
Mantle Core is an independent truck dispatching firm that is located in Chicago, Illinois. Our primary objective is to talk to shipping clients to get cargo details, organize a pick-up time, and note any special handling or delivery requirements.
We will also set up routes, also known as shipping lanes, and coordinate fleet drivers to make those pick-ups and deliveries. At Mantle Core, we are fully equipped with the latest technology in the telemarketing and call center industry, and we will work freelance for multiple trucking companies as independent freight dispatchers.
Company Profile
a. Our Services
Our primary aim is to offer varieties of services within the scope of truck dispatching by providing management services for long and short-distance freight efficiently and effectively to our fleet of independent carriers in Chicago. The services we intend to offer at Mantle Core include;
- Telephone answering services for freight carriers
- Providing contract or fee-basis telemarketing services for freight companies
- Providing freight-related telephone solicitation Services
- Providing customer service for our clients
- Technical support services
- Debt collection services
- Freight related consultancy services
b. Nature of the Business
At Mantle Core, we offer B2B and B2C services including both inbound and outbound freight management. We will be directly affiliated with trucking companies and independent carriers in our business location and consistently work on their behalf.
We will serve as their employee and help conduct negotiations on their behalf. We intend to leverage load boards and personal connections to locate freight that needs to be shipped, speak to brokers, conduct negotiations, and eventually dispatch drivers and set up their routes.
c. The Industry
Mantle Core will provide dispatching and other management services to businesses in the trucking industry.
d. Mission Statement
Our mission at Mantle Core is to provide our clients quality freight management and dispatching services 24 hours a day. We have a dedicated and well-trained cadre of dispatchers who can consistently provide well-tailored services to our carriers and clients.
e. Vision Statement
At Mantle Core, our vision is to become a recognized brand in the freight industry and also create a service-based firm that will not only meet but exceed the varying expectations of our customers.
f. Tagline or Slogan
Mantle Core –A Call To Satisfaction
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Mantle Core will be a limited liability company registered in the state of Illinois for tax purposes. Our founder, Mr. Timothy Abel, a former general manager at 24/7 Truck Dispatch Services has brought together a highly respected group of freight and customer relations specialists who have 22 years of combined experience in the freight industry.
h. Organizational Structure
The success of any business is to a great extent dependent on the structure of the organization and the people who occupy key roles there. At Mantle Core, we intend to build a solid business structure that can support the growth of our truck dispatch business. We will ensure that we hire competent hands to help us build the business, and we intend to fill the following roles;
- Chief Executive Officer
- Dispatch Center Manager
- Admin and HR Manager
- Marketing and Sales Executive
- Accountant
- IT manager
- Truck Dispatchers
- Front Desk Officer
i. Ownership/Shareholder Structure and Board Members (If Any)
Mantle Core is owned and will be managed by Timothy and Patrick Abel, two brothers who have over 20 years of experience in the Freight industry. We believe that their experience in this industry will help us to achieve our goals on time.
SWOT Analysis
a. Strength
At Mantle Core, our strength lies in our service offerings, the power of our team, and the State-of-the-art equipment and software applications that we intend to leverage to offer top-notch services to our clients. We also boast of a team that can provide our clients value for their money. At Mantle Core, we are also well-positioned in the heart of Chicago, Illinois and we know we will draw in loads of clients from the first day we open our truck dispatch firm for business.
b. Weakness
As a new truck dispatch firm in Chicago, it may take some time for our firm to break into the market and attract trucking companies with massive fleets of trucks. Another weakness we have also noted is that we may not have the necessary cash to pump into the promotion of our business the way we would want to.
c. Opportunities
The opportunities in the freight industry are massive especially in our city of choice, and we are ready to leverage any opportunity that comes our way.
i. How Big is the Industry?
in 2023, the total market size of the truckload industry in the United States is expected to attain over 196 billion U.S. dollars. According to experts, this market has witnessed a continuous increase as a result of improving economic needs for inland freight transportation in the U.S.
ii. Is the Industry Growing or Declining?
According to reports, the growth of GDP goods in transportation—the portion of national GDP that generates freight—is expected to grow at an even faster rate this year. According to experts, the industry is expected to attain a 12.2% growth in Q2, followed by 4.6% and 6% growth in the final two quarters of 2022.
iii. What are the Future Trends in the Industry
Over the past year, the trucking industry has witnessed a whole lot of changes especially in terms of the manner they operate and the kind of trucks that are making their way to the market. Truth be told, the trucking industry globally is experiencing rapid development owing to the dynamic application of technology that is now being experienced.
With the increase in expenses of transportation companies (on fuel, auto parts, etc.) these companies are looking to apply new methods and strategies to improve their efficiency. To succeed in this industry, businesses will have to flow with the tides of modern technology trends and be ready to equip their fleet with smart devices that facilitate deliveries.
iv. Are There Existing Niches in the Industry?
There are no existing niches in this business. The job of a truck dispatcher is to set up routes, also known as shipping lanes, and coordinate fleet drivers to make those pick-ups and deliveries.
v. Can You Sell a Franchise of your Business in the Future?
No, at Mantle Core, we do not intend to sell the franchise of our company in the future.
d. Threats
Technology and the internet are vital tools for the advancement of the truck dispatching sector, but they can also pose a threat to the industry. The truth is that owing to the advancement of technology, it is now easier for businesses to leverage software applications to conduct their dispatch services, market research, and communicate with their clients.
i. Who are the Major Competitors?
- Arkansas Best
- Old Dominion Freight Line
- FedEx
- Pitt Ohio
- Prime Inc.
- Southeastern Freight Lines
- DAT
- Truck Dispatch 360
- USA Truck Dispatch
- Ninja Dispatch
ii. Is There a Franchise for Truck Dispatcher Business? If YES, List at least 20 of them and their cost
There are no truck dispatcher franchise opportunities in the United States. Most businesses in this sector are small and medium enterprises.
ii. Are There Policies, Regulations, or Zoning Laws Affecting Truck Dispatcher Business?
Yes, you’ll need to make sure you have all the necessary permits and training required of qualified trucking dispatchers in the United States. In most states, you may be expected to hold at least a high school diploma to obtain your dispatcher’s permit. It’s also a competitive and complex industry; therefore some professional experience is extremely helpful.
Marketing Plan
a. Who is your target audience?
i. Age range
The minimum age of a truck driver is 18 (21 if your work will require you to cross the state border). Owing to that, we at Mantle Core believe that our target audience will still fall within that same age range.
ii. Level of Educational
Most companies require their truck drivers have a high school diploma or equivalent. Owing to that, we at Mantle Core expect our target market to fall within that educational qualification.
iii. Income Level
The average truck driver salary in the United States is $51,066 per year or $24.55 per hour, and we expect our dispatchers to also fall within that range.
iv. Ethnicity
According to experts, the most common ethnicity of Professional Truck Drivers is White (62.4%), followed by Hispanic or Latino (16.9%) and Black or African American (14.1%).
v. Language
There are no language restrictions at Mantle Core.
vi. Geographical Location
At Mantle Core, our clients are all within Chicago, Illinois, but we also intend to grow and expand to other key cities in the United States.
vii. Lifestyle
Truck drivers are permitted to drive for a total of 11 hours within a 14-hour window. After 8 hours, truck drivers are expected to take a 30-minute break before they resume. After the 11-hour limit is reached, truckers are expected to take a 10-hour break before driving again. Coupled with that, truckers are required to take at least 36 hours off after every specified work week.
b. Advertising and Promotion Strategies
- Trucking Load Boards
- Ads in Trade Publications
- Trade Association Events
- Sponsored Social Media Posts
- Offer special incentives for referrals.
- Ask your customers to provide reviews and recommendations.
i. Traditional Marketing Strategies
- Handing out flyers or brochure
- Install billboards at strategic places
- Direct mail
- Print ads
- Event marketing
- Referral
- Broadcasting
- Cold-calling
ii. Digital Marketing Strategies
- Define our target customer
- Identify our main competitors
- Develop our value proposition
- Optimize our business website
- Leverage other digital channels like blogs and email marketing
- Take advantage of social media
iii. Social Media Marketing Plan
- Pay Per Click
- Use Facebook Advertising.
- Show Your Team At Work On Instagram
- Encourage Engagement
- Post Consistently
- Make Posts Visual and Add Relevant Hashtags
- Engage with Customers and Followers
c. Pricing Strategy
At Mantle Core, we understand that setting a price for intangible services can be quite different from that of physical goods and products; nonetheless, our price will be dependent on a whole lot of factors as we intend to conduct due research.
Sales and Distribution Plan
a. Sales Channels
At Mantle Core, our sales channel will be a two-way approach. First, we intend to establish strategic relationships with carriers in our business location, and also have a basic portfolio of carriers who excel at moving freights. Secondly, we will use load boards and personal connections to locate freights that need to be shipped, speak to brokers, conduct negotiations, and eventually dispatch drivers and set up their routes.
b. Inventory Strategy
At Mantle Core, we intend to use an inventory software that will automate all business functions of our company. After extensive research, we intend to use Route4Me, a cloud-based fleet management solution designed for small, midsize, and large businesses.
This software features route planning and routing guides. It lets users type in or upload customers’ addresses and plan a route for them. It also lets us track drivers’ progress on routes in real-time and manually move customers from one route to another.
c. Payment Options for Customers
Below are the payment options we intend to make available to our clients
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Return Policy, Incentives, and Guarantees
We at Mantle Core will operate a no refund policy. This entails that we will not provide compensation for services rendered by carriers, as they are expected to be fully insured to cater to situations that warrant compensation.
e. Customer Support Strategy
- Communicate quickly and thoroughly to build trust
- Build a process to fuel continual learning for employees
- Take advantage of many communication channels
- Unify our communications
Operational Plan
Our operational plan at Mantle Core is to leverage a well-defined approach to our services rather than being everything to our clients. Note that we do not intend to be a telemarketing consultation firm, nor will it ever become so.
Instead, we plan to simply implement top-notch truck and freight management services for our clients. These areas are where we can offer higher quality services and it will allow us to charge a higher profit margin.
a. What Happens During a Typical Day at a Truck Dispatcher Business?
In this line of business, you’ll more or less be in the front line organizing and optimizing operations all day, every day. Note that your daily responsibilities as a truck dispatcher might include managing domestic vendors and collecting inbound moves.
You may also need to manage shipments between distribution and fulfillment centers. As the owner of a truck dispatching business, you have to manage the firm’s transportation partners and maintain the required service levels.
b. Production Process (If Any)
There is no production process when it comes to the truck dispatcher business.
c. Service Procedure (If Any)
The service process of a truck dispatching firm is quite straightforward. We connect businesses with shippers and carriers of goods and see to it that the loads are delivered successfully.
d. The Supply Chain
At Mantle Core, we have already concluded two contracts with local trucking companies requiring 24-hour freight management services. We believe that these will provide us with initial revenue and the chance to build our reputation.
We also intend to use testimonials from such clients to build further contracts. We have started to establish our presence using various marketing methods such as flyers, cold calls, B2B contacts, and we will be attending conventions and other events as well.
e. Sources of Income
- Arranging shipping operations for drivers, suppliers, and receiving customers
- Make arrangements with other carriers to find available drivers to cover loads
Financial Plan
a. Amount Needed to Start your Truck Dispatcher Business?
At Mantle Core, we are seeking total funding of $260,000 to start our truck dispatcher business in Chicago, Illinois. The capital will be used for funding capital expenditures, location build-out, hiring initial employees, marketing expenses, and working capital.
b. What are the Cost Involved?
- Legal: $75,500
- Insurance: $62,750
- Rent: $22,500
- Research and Development: $42,750
- Expensed Equipment: $42,750
- Signs: $1,250
c. Do You Need to Build a Facility?
At Mantle Core, we plan is to begin operations from a rented office space in a commercial area in Chicago. Initial investments will be used to set up an office, website, and management software. Additions to space will be made as the company expands operations.
d. What are the Ongoing Expenses for Running a Truck Dispatcher Business?
- Payroll and payroll taxes
- Insurance
- Utility
- Website support
- Marketing strategy
e. What is the Average Salary of your Staff?
- Chief Executive Officer: $92,410/Year
- Dispatch Center Manager: $62,640/Year
- Admin and HR Manager: $75,109/Year
- Marketing and Sales Executive: $76,511/Year
- Accountant: $61,890/Year
- IT manager: $58,900/Year
- Truck Dispatchers: $60,672/Year
- Front Desk Officer: $47,881/Year
f. How Do You Get Funding to Start a Truck Dispatcher Business
Mantle Core will be financed solely by Timothy and Patrick Abel and they will control the direction of the business to make sure that it is expanding at the forecasted rate. In terms of business start-ups, no equity funding or outside loans will be needed.
Financial Projection
a. How Much Should You Charge for your Service?
At Mantle Core, we will charge around 5 to 10 percent per load, with that rate being adjustable based on the amount of work the owner-operator wants us to do.
b. Sales Forecast?
- First Fiscal Year (FY1): $400,000
- Second Fiscal Year (FY2): $920,000
- Third Fiscal Year (FY3): $1.4 million
c. Estimated Profit You Will Make a Year?
At Mantle Core, we expect to make;
- First Fiscal Year (FY1): $40,000 (45% of revenue generated)
- Second Fiscal Year (FY2): $310,000 (60% of revenue generated)
- Third Fiscal Year (FY3): $900,000 (55% of revenue generated)
d. Profit Margin of a Truck Dispatcher Business
There are no definite profit margins in this business; nonetheless, dispatchers get paid a percentage of the driver’s earnings off of each load they find. A good number of dispatchers charge a flat rate (for example, $50 per load), but higher quality dispatch services will charge an average of 5-10 percent for each load.
Growth Plan
At Mantle Core, we plan to sell a franchise as a means to grow and expand our business. Trucking and logistics businesses are attractive to young entrepreneurs, but there are operational issues that limit their interest in this field. We will strategically put together several metrics that will make our trucking or logistics firm more valuable to willing entrepreneurs.
- Houston, TX.
- San Antonio, TX
- San Francisco, CA.
- Austin, TX.
- New York, NY.
- Dallas, TX
- Chicago, IL.
- Atlanta, GA.
We strongly believe we can find trucking companies and also owner-operators in these cities who will be willing to work with a dispatching firm. We strongly believe that these cities will grow to become top locations for the professional trucking industry. We believe they will also offer us the foundation to develop our brand in the future.
Exit Plan
Our exit plan at Mantle Core involves passing on the business to the children of our two founding members. We plan to leverage this business exit plan because it doesn’t require too much involvement from external parties and it is also one of the most straightforward options when done right.