Dispatch service vs dispatch software: what each costs and when to use which
A dispatch service is people who book loads for you. Dispatch software is a tool you run yourself. They solve different problems, but fleets often choose between them, so here is what each costs.
Side by side
| Dispatch service | Dispatch software (TMS) | |
|---|---|---|
| What you get | Load search, rate negotiation, broker setup, paperwork, often invoicing | Load, driver and document management, invoicing, settlements, reports |
| Who does the work | The service's dispatchers | Your own office or you |
| Typical price | 7% of gross (median of 50 published), or flat fees | Per truck, per user, per load or flat; 12 tools publish a price for 3 trucks |
| Cost grows with | Revenue: every load | Fleet size or users, not revenue |
| You keep control of | Less: depends on the contract | All decisions and data |
What it costs, with numbers
Dispatch fee: the median published percentage (7%) on an illustrative $4,000 gross per truck per week. Software: published monthly prices of tools that list one for that fleet size (minimum and median).
| Trucks | Dispatch fees per month | Cheapest software | Median software |
|---|---|---|---|
| 1 | $1,213 | $14.99 | $49.48 |
| 3 | $3,640 | $44.97 | $85 |
| 5 | $6,067 | $55 | $141.50 |
| 10 | $12,133 | $75 | $269 |
Not an apples-to-apples comparison: a service also finds the freight. Software prices are monthly billing from vendor pages; enterprise platforms over $2,000 a month are excluded. Details on the pricing page and dispatch fees.
How to decide
- Choose a service if you want someone else to find and book freight and you accept sharing a slice of every load.
- Choose software if you already book loads and lose time to rate confirmations, paperwork, invoicing and chasing payment.
- Use both if you outsource booking but want your own records, driver communication and billing.
Next steps: best software for small fleets, truck dispatch services, or find my TMS. If you run a dispatch service, see the best software for dispatch services.
FAQ
What is the difference between a dispatch service and dispatch software?
A dispatch service is a company whose people find and book loads, negotiate rates and handle paperwork for you, usually for a percentage of each load. Dispatch software (a TMS) is a tool your own team uses to manage loads, drivers, documents and billing. Some dispatch services use software internally; some fleets use both.
Which is cheaper?
They are not like for like, but the cash cost differs a lot. At the median 7% fee, a truck grossing $4,000 a week costs about $1,213 a month in dispatch fees. A 3-truck fleet's median published software price is about $85 a month.
Can I use a dispatch service and software together?
Yes. A fleet can outsource load booking and still use software for driver paperwork, proof of delivery, invoicing and factoring packets, so the office stays in control of documents and cash.
When does software make more sense than a service?
When you or your dispatcher already find and book loads and the pain is paperwork, invoicing, driver communication and knowing which loads are paid. When you want someone else to find freight, a service fits better.