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What is Centralized Dispatching and How Does it Work?

by Andrew Burg,
Jun 26, 2024
how does centralized dispatching work
how does centralized dispatching work

Fast, efficient delivery operations is the standard. In a time where customers seek instant gratification, it’s a must for your delivery business to embrace new strategies that optimise your delivery operations.

In this article, we’ll explore one such approach: centralized dispatching.

Learn the meaning, benefits, and best practices below.

What is centralized dispatching?

Centralized dispatching is a system a courier service can leverage to ensure that deliveries are prompt and efficient. As the name implies, the arrangement of goods or services come from a central location.

Data collection devices are used to communicate between departments and relay crucial information.

The main function of centralized dispatching is to determine the priority of an order. Someone then sets instructions for teams to organise and arrange the delivery.

How Does a Centralized Dispatch System work?

A set process is triggered when a client makes an order through a centralized dispatching system. The various parts of this process all need to be actioned.

1) A store or department issues an order to deliver the required raw materials. This is followed by an instruction to send the required tools to a worker.

2) The worker will collect their tools and proceed with the task. A time ticket will be issued at the start and end time of the operation, which forms the basis of their pay.

3) Order cards or drawings must be available from the start, and equipment ready for use. Throughout all of this, you must keep extensive records to maintain a high standard of information.

Understanding a Decentralized System

In a decentralized dispatching system, the shop supervisor performs the dispatch orders. At its core, it still runs the same functions, but the steps are completed internally.

The supervisor will decide who handles various orders as well as what materials and equipment they need. There are some advantages to a decentralized dispatching system. However, the benefits of a centralized system far outweigh those of a decentralized organization.

Difference between centralized and decentralized dispatching

In a decentralized dispatch model, the shop supervisor knows the ins and outs of their business. These guys run a tight ship and they’re likely to run a smooth operation because they know your business so well. Decentralized dispatching often involves multiple locations, allowing separate depots in different areas to manage dispatch orders efficiently.

They’ll understand who’s in the best position to complete the task and what they need to do so. This is usually enough for small businesses.

When working internally, the communication gap is smaller. This can also result in fewer delays. Some external systems come with the risk of duplicating reports and logs.

Thankfully, modern software that supports centralized dispatching doesn’t have this problem.

Advantages of a centralized dispatching system

Centralized dispatch systems comes with several benefits, lets name some of them.

Improved communication between teams

When orders are brought into a singular location, there’s better communication between all parties, especially when tracking delivery drivers or delivery status.

This reduces the risk of information loss and enhances the transfer of knowledge. It also creates a more informed routing system. It then becomes easier to streamline workflows and follow established routines.

Easier to onboard new staff

Centralized dispatching makes training new staff a lot easier. It streamlines team training by consolidating the information you use to teach your new operators. Any behavioural differences are reduced when people are relaying the same information.

For any business model, you know routine is valuable. The more you can streamline a process, the more value and productivity you add to each workday.

You standardise your processes

And lastly, the primary benefit of a centralized dispatch system is the fact that it allows for simple (yet powerful) standardisation. Best practices can be determined from a single location by centralizing dispatching functions.

Standardisation helps you support your staff with easy-to-follow workflows, and reduces human error, ultimately boosting customer satisfaction.

How to improve the centralized dispatching model

The effectiveness of dispatchers is determined by how well they prioritise jobs. They must also understand the best way to allocate mobile personnel to the appropriate on-site jobs.

The onus does not have to fall entirely on the dispatcher, but they do act as the face of your customer service.

A dispatcher must have a good grasp of their field workers’ capabilities and availability. They should also have an in-depth understanding of the travel routes and equipment required to optimize routes. This enables field technicians or drivers to provide a timely and accurate service.

The ability to quickly analyse customer information is crucial in estimating the urgency of the desired service. Active listening, organisation, prioritisation, and customer service are key skills. While these are but a handful of the necessary skills required, they are some of the most valuable.

Finally, the efficient use of technology is paramount. The right software can completely change the game for a company.

Whether your fleet is small or large, you need the best system for your business if you’re going to remain competitive. You can be sure that if you’re not doing it, someone else is. Take the complexity out of Centralized Dispatching Check out how we can solve your biggest issues Or Have a 15 minute chat with a logistics strategist

Apply a Centralized Dispatching Model with Ease

Smart and efficient processes heavily rely on technology for it to work. Delivery management software, dispatch software, or route optimization tools can help you simplify logistics process by automating customer communication and using paperless documents. It also helps you track delivery ETAs so you can coordinate with customers.

TransVirtual gives you complete control of your deliveries and total supply chain visibility. This makes your business as effective as it can be without sacrificing quality. Book a demo with us today to become truly efficient and organised.

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