Guide to Dispatch Management With Smart Automation

Guide to Dispatch Management With Smart Automation

In today’s digital landscape, using smart and dependable dispatch management automated software has become businesses’ need of the hour. The rise in online shopping, new ways of doing business like local and same-day deliveries, and customers wanting quick updates have accelerated the need for smart automation. 


From single operators to managers of big fleets, good dispatching is the heart of any delivery business. It directly affects how much money you make, how efficient you are, and how happy your customers are. 


This blog will look closely at dispatch tracking and management, its challenges, and how smart automated systems can help businesses grow and earn more.

What is dispatch management?

Dispatch management is all about organizing, planning, assigning, and optimizing the routes, schedules, and work processes for all employees involved in a business’s delivery, maintenance, and service sectors. 


Big enterprises, field staff, and delivery partners might be spread across different locations and time zones. Managing dispatch manually becomes challenging with several customers, especially with tight delivery schedules.


Hence, most companies depend on automated dispatch management systems to streamline and automate processes to achieve cost efficiency, timely deliverables, and optimizing resources.

What is automated dispatch management?

Dispatch involves assigning vehicles and goods for effective deliveries. In the past, this was often a manual process handled with hefty spreadsheets or even simple pen and paper. But in today’s fast-paced world of instant deliveries, a manual approach no longer cuts it.


As shippers face mounting pressure to cut costs and streamline deliveries, the need for automated dispatch software has come into focus. 


Rising customer demands, growing competition, and technological advancements have made this software essential for efficiently tackling the complexities of logistics.


Consider the trucking industry, for instance. Effective truck dispatching demands real-time communication and substantial coordination among dispatchers, truck drivers, and customers. 


Managing multiple tracks on various routes manually is an uphill battle for larger fleets. Enter automated dispatch systems, and the process becomes quick and smooth. 


The software does the hard work, using data to automatically schedule deliveries and track your fleet and goods in real-time, providing total transparency.

What is dispatch tracking?

Dispatch tracking in logistics is the process of monitoring and managing the movement of goods from one place to another in real-time. This involves keeping tabs on vehicles, delivery personnel, and packages from the point of origin (usually a warehouse or distribution center) to the end of delivery (the customer’s location).


The main goal of dispatch tracking is to ensure that goods are delivered most efficiently. This means ensuring that deliveries are made on time, that the most efficient routes are used, and that any potential issues or delays are identified and addressed as quickly as possible.


Also read: Digital Indent Allocation in Logistics: How it Works and Why it is Important?

Challenges of dispatch management

Let’s quickly overview the challenges of the dispatch management process.

Manual Management

When dispatching is done manually, it’s slow and prone to errors. Mistakes can lead to delays, wasted resources, and unhappy customers. An effective dispatch management software should mitigate these errors, thereby improving efficiency.

Coordinating Deliveries

Matching the right vehicle and driver to the right delivery is tricky. It gets more difficult with more drivers, vehicles, and delivery locations. Efficient software will have systems in place to make this process smoother and more accurate.

Real-Time Updates

Providing live updates on delivery status can be challenging. Without real-time tracking, it’s hard to give customers accurate delivery times. For example, customers may need to know when to expect a package if they need to be present to receive it.

Managing Unexpected Changes

Things like traffic, weather, and last-minute order changes can disrupt schedules. Adapting quickly to these changes is a big challenge. Dispatch management software should have the flexibility to quickly adapt to these changes, minimizing delays.

Route Optimization

Finding the most efficient route for each delivery is not easy. Without smart software, this can be a time-consuming task. Consider a delivery van that needs to drop packages at multiple locations; finding the shortest path that covers all the drop points can save time and fuel costs.

Fleet Maintenance

Keeping all vehicles in good condition and ready for service can be difficult to manage, especially for large fleets. Think about a delivery truck breaking down in the middle of a route; preventive maintenance could have avoided this.

Driver Safety

Ensuring driver safety on long and tiring routes can be a challenge. It’s important to manage driving times and breaks properly. For example, tracking a driver’s hours on the road can help prevent fatigue-related accidents.

Customer Satisfaction

Meeting customer expectations for fast, reliable deliveries can be challenging, especially when things go wrong. Dispatch software can provide real-time updates and manage ETAs to keep customers informed and satisfied.

Cost Control

Balancing the cost of fuel, vehicle maintenance, and labor with the need to provide quick, efficient deliveries can be hard to manage. Good dispatch software should help optimize these factors, contributing to the overall cost-effectiveness of operations.

Regulation Compliance

Staying up-to-date and complying with transportation and safety regulations is another major challenge in dispatch management. A dispatch management solution should include features that help users stay compliant, such as logging driver hours to comply with Hours of Service regulations.


Also read: Top 11 Benefits of Yard Management System


Limitations Addressed By An Automated Dispatch Management Platform


Automation in dispatch management has been established as a game-changer for businesses across industries, offering solutions for various challenges. 


Here’s how automated dispatch management software can overcome some of the common limitations:

Eliminating Manual Dependencies

Manual dispatch processes often rely on paperwork, increasing the chances of human error. With automated dispatch software, these jobs are streamlined and digitized, resulting in reduced errors and improved efficiency.

Prolonged Delivery Turnaround-Time

Inefficient routing and scheduling lead to excessive delays in delivery. Automated dispatch platforms incorporate algorithms to optimize routes and schedules, ensuring the quickest delivery times and maximizing the number of deliveries that can be made daily.

Poor Driver Productivity

Without innovative dispatch solutions, drivers can spend much time waiting for assignments or driving inefficient routes. An automated system helps in quick task assignment and effectiveness, leading to more promising utilization of drivers’ time and increased productivity.

Lack of Visibility Over Ground-Level Delivery Operations

Traditional dispatch management approaches make tracking and monitoring real-time operations complex. Automated platforms offer real-time tracking features that provide complete visibility of the delivery procedure from the warehouse to the customer’s doorstep.

Inefficient Delivery Route Planning

Manual route planning is usually time-consuming and inefficient. Automated dispatch software employs sophisticated algorithms to study factors like traffic, distance, and delivery windows to schedule the most efficient routes.

Diminishing Customer Experience

In today’s fast-paced world, customers expect fast and efficient deliveries. Delayed or wrong deliveries can lead to a poor customer experience. 


Automated dispatch platforms improve customer experience by providing timely deliveries and real-time tracking updates. They can even offer preferred delivery times to increase customer satisfaction further.

How the automated dispatch system works

Here’s a look at how dispatch management with smart automation functions:

Step 1: Data Input and Order Management 

The process begins with the input of data into the system. This data includes order details, customer information, delivery addresses, and other relevant parameters. The software typically integrates with other systems to automatically import this information. This initial step ensures that all order data is available in one place, simplifying the subsequent stages of the process.

Step 2: Planning and Scheduling 

With the data in place, the automated dispatch management software proceeds to the planning and scheduling phase. Here, the system uses complex algorithms to analyze various factors, including delivery priorities, vehicle capacities, and transport costs. Based on this analysis, it determines the most efficient delivery schedule and route for each order.

Step 3: Load Optimization 

Following planning and scheduling, the software undertakes load optimization. It assesses the volume and weight of the orders and allocates them across the available vehicles in the most effective manner. This process ensures optimal utilization of vehicle capacity, reducing transportation costs and minimizing the environmental impact.

Step 4: Dispatching 

Once the orders have been optimally allocated, the dispatching process begins. The software automatically assigns orders to drivers based on the predetermined schedule and routes. It provides drivers with all necessary details, including pick-up and delivery addresses, delivery instructions, and more.

Step 5: Real-Time Tracking 

Once the vehicles are dispatched, the automated dispatch management software enables real-time tracking. This feature allows businesses to monitor their vehicles and deliveries in real time, providing valuable insight into the progress of the deliveries.

Step 6: Proof of Delivery and Reporting 

Upon delivery of the orders, the software facilitates electronic proof of delivery, typically through digital signatures or photo evidence. Finally, the software generates comprehensive reports detailing the performance of the dispatch process. These reports are essential for evaluating efficiency and identifying areas for improvement.


By automating these steps, dispatch management software can significantly streamline the dispatch process.


Note: These steps provide a general overview, and the steps can be further expanded and customized based on the specific processes, systems, and requirements of your dispatch management automated software.

7 reasons you need automated solution for dispatch planning and tracking

Let’s dive deep into the top few reasons demonstrating the need for an automated solution for dispatch planning and tracking.

Enhanced Monitoring and Communication

Automation tools use GPS tracking to keep tabs on agents and vehicles, while features like mobile apps and automatic notifications allow easy communication between dispatchers and drivers, and up-to-date trip statuses.

Improved Customer Interaction

Automated systems keep customers informed at each stage until final delivery, which boosts their satisfaction levels.

Streamlined Post-Dispatch Operations

Dispatch tracking solves post-dispatch issues by allowing all parties to track their deliveries live. Features like electronic-proof-of-delivery (ePOD) improve efficiency and reduce paperwork.

Comprehensive Order Management

From order placement to final delivery, dispatch software records every movement of goods, offering a clear end-to-end order management.

Real-Time Asset Tracking

Cloud-based dispatch software enhances visibility by providing real-time monitoring and alerts regarding the dispatch and delivery of assets.

Efficient Route Planning

Dispatch software enables multi-stop route planning considering factors like driver availability, delivery addresses, shipment volumes, etc. This automation reduces operational costs, improves on-time delivery, and increases productivity.

Automated Task Assignment and Dynamic Routing

Software-based dispatch platforms simplify the task allocation process, using dynamic routing to automate assignments. They also provide essential details to drivers like delivery address, arrival time, and specific instructions. 


Plus, real-time GPS tracking enables live monitoring of delivery route performance. Dynamic routing, based on actual order volumes and delivery times, enables efficient use of trucks and better addresses customer needs.


How to choose a dispatch management software: Things to Consider

Choosing the right dispatch management software for your business is crucial to streamlining your logistics processes, improving customer satisfaction, and driving growth. Here are the key things you should consider:

Integration Capabilities

Dispatch management software should offer the ability to easily sync with your existing systems such as your Enterprise Resource Planning (ERP), Warehouse Management System (WMS), Transport Management System (TMS), and Customer Relationship Management (CRM) tools. 


This seamless integration ensures minimal disturbance to your current operations while providing data consistency across platforms. For example, when an order is placed through your CRM, the information is automatically passed to your dispatch software, triggering the assignment of drivers and vehicles without the need for manual intervention.

Driver and Vehicle Allocation

The software should have the ability to efficiently manage and allocate resources. This involves assigning specific vehicles to drivers and creating schedules that optimize their usage. For instance, a system that allows for dynamic assignment based on factors such as vehicle capacity, driver skill sets, and vehicle availability can streamline your operations considerably.

Customized Dashboard

A personalized, user-friendly dashboard is crucial. It should provide key performance metrics at a glance, offer easy navigation, and be customizable to your business’s unique needs. 

This way, users can quickly access the information they require, whether that’s a high-level overview or detailed data. 


For example, a manager might want to see overall performance metrics, while a dispatcher might need quick access to driver schedules and vehicle statuses.


The selected dispatch management software should grow as your business does. This means it should be capable of dealing with an increase in business volume, managing more complex routes, accommodating additional users, and so on, without any detrimental impact on performance or user experience. 


Imagine you are running a small delivery service with 10 vehicles and the software works perfectly. Now, as your business expands to 100 vehicles, the software should be able to handle this ten-fold increase without any lag or reduction in functionality.

Route Tracking

A key feature to consider in dispatch management software is route tracking. This function allows for real-time tracking of delivery vehicles, providing dispatchers with a live view of each vehicle’s location on a map. This feature is akin to how a ride-sharing app, like Uber, allows you to track your ride as it makes its way towards you. 


Similarly, route tracking allows the dispatch team to monitor delivery progress and make immediate decisions if deviations from planned routes occur or unexpected incidents arise. It also increases transparency with customers by providing them accurate estimates and live updates about their deliveries.


Additionally, historical route tracking data can be analyzed to evaluate the efficiency of planned routes versus actual ones, helping in refining route planning over time.

Automated Dispatching and Scheduling

It’s beneficial to choose a solution that incorporates automated dispatching and scheduling features. Such tools can automatically assign tasks to drivers based on predefined rules, like their proximity to the pickup location, their current availability, or specific skill sets required for a job. 


This automation leads to improved efficiency as it eliminates the chances of human errors, such as double-booking a driver or overlooking a delivery due to manual scheduling. It’s like having an intelligent assistant that can quickly analyze multiple factors and make the best assignment decision within seconds, thereby increasing the efficiency of your operations.

In-Built Communication Tools

Smooth communication is vital in dispatch management. The chosen software should facilitate swift and direct communication between dispatchers and drivers, and vice versa. 

Consider this feature as a walkie-talkie embedded within the software. When a driver is stuck in traffic or when a delivery location is changed at the last minute, the dispatcher can immediately communicate with the driver via the system. 


Similarly, drivers can instantly report back to the dispatchers regarding any issues or updates from the field, ensuring everyone is on the same page.

Reporting and Analytics

The ability to make data-driven decisions is crucial in improving operational efficiencies. Your chosen software should be able to generate detailed reports and analytics on a range of performance indicators such as delivery timings, fuel consumption, driver performance, etc. 


For instance, the software should be like your personal business analyst, providing you with insights such as which drivers are the most efficient, which routes are the most fuel-intensive, or what times of the day have the longest delivery times. This information allows managers to identify areas of improvement and implement changes to enhance overall performance.

User Experience and Issue Resolution

One of the key factors in retaining customers is having an efficient system for gathering user feedback and addressing issues. Automated Interactive Voice Response (IVR) calls and AI chatbots, often employed in logistics software solutions, offer immediate response to common customer inquiries.


This feature allows your support team to concentrate more on resolving complex or unique issues, promoting effective communication and a better overall user experience. The ability to swiftly respond to and solve problems greatly contributes to customer satisfaction and loyalty.


Choose Fretron for smart and scalable dispatch management process


Fretron’s AI-driven dispatch logistics management platform unifies all components of the dispatch logistics ecosystem, including drivers, dispatchers, and customers, under a single, user-friendly dashboard. 


Its robust and adaptable features offer real-time visibility into asset and order movements, along with comprehensive data analytics to identify and address operational challenges across both domestic and international borders.


Fretron boosts customer satisfaction with real-time delivery status updates and push notifications. As a customizable, SaaS-based platform, it enables businesses to effortlessly integrate logistics operations across various transportation modes. 

Fretron Order and dispatch planning platform features

  • Order Upload/ Order splitting and merging 

  • Truck Load Building with Reverse-Bidding 

  • Order assignment(Automatic/Manual) 

  • Auto Truck allocation & ELR Creation 

  • Transporter performance/Scorecard report

Frequently Asked Questions [FAQs]

What is the dispatch and delivery process? 

The dispatch and delivery process involves the planning, scheduling, and execution of sending goods from one place to another. It starts with order placement, followed by scheduling the delivery (dispatch), picking the goods, loading them onto the appropriate vehicle, planning the route, and then delivering the goods to the customer.

What is dispatch and how does it work? 

Dispatch refers to the process of sending goods or services to a specific location, based on a customer’s order or a business requirement. It involves various steps such as order acceptance, scheduling, route planning, and actual transportation of goods. In a broader context, it also includes tracking the dispatched goods, updating the delivery status, and handling returns if necessary.

What is a dispatch management system? 

A dispatch management system is a software solution that automates and manages the process of dispatching goods. It can handle tasks such as order entry, dispatch scheduling, route planning, real-time tracking, delivery confirmation, and more. These systems are designed to streamline dispatch operations, enhance productivity, and improve customer service.

How does smart automation improve dispatch management? 

Smart automation streamlines the dispatch process by minimizing manual intervention, reducing errors, improving route planning, and enabling real-time updates. This leads to improved operational efficiency, cost savings, and enhanced customer satisfaction.

What are the key features to look for in a dispatch management system? 

Key features to consider include ease of integration with existing systems, scalability, automated scheduling, route tracking, in-built communication tools, and comprehensive reporting and analytics.

Can I customize a dispatch management system to fit my specific needs? 

Yes, many dispatch management systems offer customization options to meet the unique needs of your business. This can include custom reports, integration with specific systems, and tailored features for your operations.

How does a dispatch management system help in cost control?

A dispatch management system aids in cost control by optimizing route planning, reducing idle time, automating scheduling, and providing insights into fuel consumption, vehicle maintenance, and labor costs through detailed reports and analytics.


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