GDMD
Focus on performance
How to make a company work
1. Mobility
Use outsourcing
Compliance, formalities, reporting, registrations, accounting, paperwork...
"Universal employee" is not right solution. Should not to depend so much on one person.
Might be outsource the routine and let everyone do their own work?Just type "trucking back office service" into your browser.
Backoffice and FRONToffice.
Why shouldn't they be merged?
Shortly, there are two main reasons: 1) Long term commitment with back office is convenient for Carrier. Contrary, it's unaceptable with Dispatch.
2) You should motivate your Dispatch, while the back office's fee is not tied with your income.
BackOffice responsible for whether all necessary tasks have been timelly completed(accounting, collection of payments, safety, legal aspects, IFTA, registrations, taxes, insurances, incidents and fines, maintenance of equipment, supply, etc). Should to entrust it to a large reliable company, which has a narrow specialist for each task.
You pay for THEIR reputation and professionalism. Thus, the commission doesn't depend on the carrier's revenue, but on the number of its employees and equipment and functions assigned to the outsourcing service.
FrontOffice is responsible for efficiency. There is only one function, and the question is HOW it is done.
FrontOffice is dispatchers and drivers.
They can do either high or low RESULT. To motivate them to bring more money - their salary is based on income they bring.
2. Structure
Separate functions
3. Motivation
"Flat Percent of Gross"
DOES NOT WORK
Let's take a dispatcher working for 3% from the gross in today's market.
So, he can withdraw a driver for $9,000 a week and take $270 commission. It takes effort, more time to work, analyze, planning, advanced subscribtion requred, etc.
OR HE CAN make 7 thousand at easy and just take one more same naive driver - and this is already $410 commission, without much effort. But these two drivers will continue to earn $7,000 a week.
Therefore carriers should not pay for dispatch at a flat rate! But how to be?
Of course, in order to motivate, the dispatcher's fee must be based on the revenue that he brings in. But not in flat percentage terms.
GDMD Dispatch's fee is based on how much we exceed $8000/week.
