7 Dispatching Functions, How Important Is It For Logistics?

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Dispatching – The e-commerce industry provides convenience to your consumers with various product options, increasing convenience in making routine shopping decisions. These factors make tracking the shipping process very important to ensure the smooth delivery of goods.

Besides the ability to buy anything you want with just a few taps, we live in an era where information is easily accessible via the devices at our fingertips. In the midst of this domination of instant gratification, no one is willing to face the barriers of knowing the progress of the status of the exciting purchases they make.

Consumers want the ability to track delivery details in real time, and they expect all of this information to be available in real time

However, how can a merchant or retailer always be aware of all activity from the moment a purchase is confirmed? Let’s dive deeper into what is dispatching in this TransTRACK article!

Understanding Dispatching

Dispatching is the process of allocating orders related to manufacturing or troubleshooting to desired operational locations (such as workers), based on available capacity and existing production planning. The aim is to ensure the smooth implementation of the plan.

This task is carried out by dispatchers who have an understanding of the capacity of the various operating points and track orders through the system. This delivery process builds a bridge between the production stage and the sales aspect.

What is the Function of Dispatching?

Delivery plays a central role in logistics activities, ensuring that products can be delivered on schedule and meet consumer expectations. Shipping managers use various tools and systems to manage the movement of goods:

  • They utilize routing software to plan delivery routes, or GPS systems to accurately track vehicle positions.
  • In addition, communication systems are an important tool that allows them to stay connected with drivers and other staff.

Dispatching has a very crucial role in maintaining the continuity of logistics operations, thereby contributing to ensuring that products can be delivered on time and meet customer expectations.

Dispatching Procedure

The stages in dispatching often involve several crucial steps, which may vary according to the shipping company or operator involved. Presented below are some general steps generally involved in a delivery chain:

Order Process

This stage involves receiving and processing orders to be delivered. This may include verifying order details, checking inventory, and preparing goods for shipment.


Once an order is processed, the product is generally placed in a suitable container or box to protect it during transit.


The package is then labeled with relevant information such as recipient address, shipping method and other specific instructions.

Operator Selection

The carrier or shipping company is then selected based on considerations such as delivery location, delivery method, and required schedule.


The shipment is then transported to a freight distribution center or directly to the final destination, depending on the shipping method and the mode of transportation used.


Throughout the shipping process, shipments are generally monitored via tracking numbers or other identification. This allows senders and recipients to follow the progress of shipments and estimate arrival times.


Finally, the shipment is delivered to the recipient, usually by a courier or delivery person. Confirmation of delivery is done via signature or other proof of receipt.

Dispatch Type

There are two different types of dispatching:

Centralized Dispatching

The order delivery process is carried out from one central point that has a comprehensive vision of the capacity of all production departments. Orders are directed to workers based on the needs of each individual order. This model has greater control, high flexibility, and effective coordination between various facilities. This also allows optimizing the utilization of labor and other resources.

Decentralized Dispatching

This approach is carried out at shop floor level or more advanced locations. This approach aims to reduce gaps in communication and overcome time constraints in dealing with daily problems. Employees within the production unit have a better understanding of local operations, so they can arrange delivery of goods accurately and based on instinct. This model also plays a role in reducing the incidence of duplicate deliveries for similar orders.

How to Improve Dispatching Management

Various methods are available to increase efficiency in shipping management. If you serve as a manager, the first step can start by interacting directly throughout the process.

In shipping, there are much broader aspects than simply moving from Location A to Location B. If you are not directly involved, it can be difficult to fully understand all the tasks that a dispatcher or driver performs every day.

Thus, understanding the daily routines and challenges faced by your operator staff can be a solid foundation. Having such realistic insights will result in a more organized delivery process, increase customer satisfaction levels, and support all parties involved in having a unified understanding.

Apart from that, the use of a dispatching management system is also highly recommended. While it may seem simple to manage the shipping process without utilizing shipping management software, especially in small business operations with few experts.

However, previous generations of dispatching management systems did not have the ability to aggregate data into a single system. They are also unable to ensure maximum use of all resources, address problems as they arise, and so on. This is where state-of-the-art software for trucking makes a significant difference.

Dispatching example

Let’s take the example of a tire manufacturing company that implements a make to order production strategy. In this situation, the company receives an order for 100 tires from the distributor. This company has several production floors with different capacities and are still not fully utilized. In this case, dispatchers play a key role because they have a clear understanding of the location with sufficient capacity to fulfill the order. As a result, they will allocate those orders to the proper operating points.


Dispatching, as the skill of managing tasks efficiently, is at the core of smooth operations in various sectors. From the transportation sector to emergency services and manufacturing, the impact is significant. By ensuring timely execution of tasks, optimal use of resources, as well as increased client satisfaction, the delivery process contributes to the success of an organization. By adopting modern technology and applying data-driven insights, organizations are increasingly empowered to excel in their delivery efforts.

Track your dispatching easily with TransTrack’s Cargo Tracker! Simple installation makes it ready to use in minutes. With advanced tracking technology, you will always have accurate location information for your shipments. No need to worry about the battery running out, because our Cargo Tracker has a battery life that lasts up to 5 days. With reliability and ease of use, make sure each of your cargo shipments arrives on time and safely with our Cargo Tracker.


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