To date, according to the “Logistics Rating” compiled by the World Bank, the official five leaders in the development of transport infrastructure and trucking dispatch training in the world are: Japan, France, Germany, Great Britain and, of course, the United States.
These “five” account for more than 85 percent of the total turnover of world inland transport, excluding sea routes and air transport.
The total length of the world’s road network averages about 23 million kilometers, and a third of these roads are concentrated in America. Most large companies – cargo carriers choose land transport. First of all, for its flexibility. It allows you to deliver cargo anywhere in the world, where there are roads.
In addition, the car is quickly and successfully combined with other modes of transport. It is the type of this transport that determines the cost of cargo delivery. There is a huge competition between carriers in the USA, which provides an individual approach to the client and a flexible system of discounts for him.
Philosophy of business in the USA
Thus, the rate for the transportation of cargo, as a rule, includes not only the commercial benefit for the carrier company, but also the specific characteristics of the cargo itself, and, importantly, the interest of the state in maintaining the cargo flow with this particular product.
What is the philosophy of the American freight business?
Most trucking companies in the United States build a business on the principle of future sale, according to the franchise system. This is necessary so that the owner can sell his company at a bargain price at any time, and the buyer, in turn, can track the benefits of investing in the enterprise and the competence of its employees.
Thus, the average businessman will without fail prescribe all the current processes in the work of his company, apply a systematic approach not only in service, but also in recruitment, despite the fact that only a couple of people may be in the company.
Another feature of the work of American businessmen and their employees is that it is built on a clear distribution of tasks.
Everyone is used to doing their own tasks. The psychology of an employee who is trying to “pull the blanket over himself” because he “knows better”, or “wants to show everyone how to do it,” is not welcome in America, to put it mildly.
For example, if a trucker’s wheel bursts on the road, he most likely will not grab the tools and install the spare wheel on his own, he will call the emergency service and wait for the professionals. It is they who must provide repairs on the road, and the driver’s business is to drive the car. The business owner will understand him, because such behavior is absolutely normal and logical in the USA.
The third point: Americans are used to running a transparent and completely legal business, without looking for a method of earning dubious income. Why? The fact is that entrepreneurial activity, life, trust, and indeed, the whole life of an American person depends on his credit history, which means that if it is bad, then he will have no prospects for development. In addition, no bank will give you a loan if it doubts your reputation.
By the way, before inviting an employee for an interview, it is customary in the United States to study the number of his insurance policy, where you can read all his financial and professional background. If this story is bad, chances are he won’t even be interviewed.
Well, and most importantly: any American businessman, including in the field of logistics, considers quality service to be the most important aspect in his business. It’s not that he promotes the idea of “the customer is always right”, but it is customary to pay money for the service in America, including a lot of money.
What does a regular trucking company do?
Organization of cargo transportation and full support on the road of this cargo. As a rule, her duties include: – route planning; – preparation of all transport documents; – conclusion of an agreement between the carrier and the sender of the goods; – container packing with cargo, marking; – transportation of goods by the necessary mode of transport; – support at customs; – placing the container in the vehicle; – distribution of goods in warehouses and protection in special, necessary conditions; – transportation from point A to point B;
All this work is done not only through the customer and the logistics company, but also with the direct participation of the dispatcher and the broker.
A broker is an intermediary in concluding a transaction for the transportation of goods, who receives his commission for this. In particular, the transport broker ensures the placement of applications from companies for cargo transportation, he also processes them, from the moment the application appears to the final payment for delivery. In part, he takes responsibility for the miscalculations and mistakes that transport companies can make when fulfilling an order. Based on the completed applications, the broker generates a rating of cargo carriers in the country.
A dispatcher is an employee in the field of logistics who is responsible for the correct management and operation of a trucker, as well as for a favorable cargo pricing policy. The dispatcher works with the truck driver, he is looking for cargo for him through a broker, which is beneficial for both the driver and the broker himself. After that, the working moments between the broker and the driver are agreed upon (including pricing policy), and the goods are sent on their way.
How do participants agree on cargo transportation?
Let’s say a manufacturer has a load that needs to be moved from point A to point B. To do this, the owner can use a freight search engine or contact a broker. Most often, the company chooses the second option, since hiring your own broker is much cheaper, especially if the company plans to regularly transport goods.
As soon as the broker receives the cargo, he either already contacts his familiar carriers, or places his cargo in a search engine.
Next, the dispatcher enters the “game”. He contacts a broker and offers the services of his trucker, specifying the most important details: price, weight, cubic capacity and delivery time. The deal is agreed, the broker sends the documents to the dispatcher, who signs them and sends them back.
If the transaction is conducted between firms that did not work together before, then the parties exchange additional registration numbers of firms, numbers of insurance policies and additional characteristics of the companies – parties to the transaction. Then the received data is fully checked. The broker checks the number of the insurance policy, is interested in the experience of this carrier with the company that left a description on it.
The carrier, in turn, checks the MC number through the rating of factoring companies. Even if he does not work through factoring, he will still check the ratings. There is no single rating in the USA, however, each company keeps records, which the carrier pays attention to.
At the same time, it is important to understand that even a high rating does not always guarantee good services. According to statistics, out of 200 orders that a logistics company receives, at least one is bound to be unprofitable.
Further, the dispatcher, having accepted the order, calls the warehouse where the loading takes place. He gives the warehouse workers the car number, the driver’s data, approves the agreed time and gives the broker’s contacts. The process of cargo delivery already falls on the shoulders of the trucker and the dispatcher: they are constantly in touch, the dispatcher helps him on the way, solves all the problems that arise along the way, fills in the necessary documentation.
What do freight companies usually transport?
– general cargo (clothes, gift sets, accessories, household items); – products of short storage; – heavy cargo (equipment, metal structures); – oversized cargo; – valuable cargo; – dangerous substances; – informal technology.
Salaries in the field of logistics
In the US, the average salary of a logistician ranges from $40,000 to $93,000 per year. The highest paid state for logisticians is the District of Columbia, where an employee in this field can receive up to 95 thousand dollars a year.
The broker’s salary depends on the profit of the deal he made and on the number of those deals. For each contract, the broker has a percentage. According to the US Bureau of Statistics, the average broker’s salary can start at $35,000 per year and go up to $50,000.
The salary of a dispatcher, first of all, depends on his skills and abilities. The more professional the specialist, the more tracks he can serve. It can be 3-5 trucks at the same time, but each truck can generate income up to $1,000 per month. The most sought-after professionals in this field can earn up to $70,000 a year. And this is their real income in the field of logistics.