The KPI Breakdown Every Dispatcher Should Know
Too many small carriers overlook this. They hire dispatchers to keep trucks moving but never train them to measure what actually matters. That's why you can run 2,000 miles a week and still lose money. Or think you're doing great—until that breakdown or late delivery costs you a contract.
Whether you're dispatching for yourself or managing a small team, this article breaks down the KPIs every dispatcher should know cold. Not just because it's good business, but because if you want to scale, you've got to manage by the numbers—not by gut feel.
Let's break it down.
This is the foundation. Revenue Per Mile is the most basic performance indicator in dispatch—and the most misused.
Most dispatchers will tell you they're getting '$2.50 a mile,' but they're looking at gross rate—not net. And they're often including empty miles without even realizing it.
The Fix:Track loaded revenue per loaded mile, not total miles. Then track total revenue per all miles. Why? Because both tell a different story.
If your loaded RPM is $2.50 but your all-mile RPM is $1.85, you've got a deadhead issue. That's a dispatch problem.
Target RPM (All Miles):
Dry Van: $2.00+
Reefer: $2.30+
Flatbed: $2.50+
Hotshot: $2.00–$2.20
If your dispatcher isn't watching deadhead like a hawk, you're burning diesel and losing margin.
Every empty mile is a silent killer. You're wearing down equipment, paying for fuel, and losing hours—without earning a dime.
The KPI:Deadhead % = (Empty Miles ÷ Total Miles) × 100
Ideal Target: Under 12%If you're above 15%, it's time to have a serious conversation about routing and planning.
Real-world Example:We had a fleet running Texas to Atlanta. The dispatcher kept booking returns out of Savannah—because it paid 'better.' But the deadhead to Savannah wiped out the profit. Once we tightened the outbound strategy and aligned reloads closer to Atlanta, profit jumped 14%.
KPI #3 – On-Time Performance
Shippers don't care about how far you drove—they care if you were on time.
Yet many dispatchers don't track arrival times consistently. Or worse, they rely on drivers to 'check in' without confirming timestamps.
The KPI:On-Time % = (On-Time Loads ÷ Total Loads) × 100
Target: 98% or betterAnd yes, 95% is not good enough if you want direct freight.
Pro Tip:Build a habit of documenting delivery ETA vs. actual time on every load. If a driver hits traffic, logs out late, or stops for an unscheduled break—track it. Over time, you'll spot patterns that help fix service issues before they cost you a customer.
Dwell time kills your hours, clogs up your day, and wrecks driver morale. If your dispatcher isn't tracking how long trucks sit at each shipper or receiver, they're leaving time—and money—on the table.
The KPI:Dwell Time = Time at facility (from check-in to check-out)
Why It Matters:
You can start negotiating detention with evidence.
You can identify problem customers.
You can coach drivers on check-in/check-out habits.
Target: Under 2 hoursLonger than that? Start documenting, charging, and rerouting away from poor-performing facilities.
Now here's where dispatch and accounting collide. Your dispatcher might not be paying the bills—but they influence almost every cost decision with the loads they choose.
Fuel, tolls, time, route, idle—all affected by dispatch.
Your Role:Even if the dispatcher isn't doing the math, they need to know the target. For example:
If your fleet's breakeven CPM is $1.70, then taking a $2.00/mile load with 150 deadhead miles is a bad move.
If a load has NYC tolls and drivers unload, the 'rate' better reflects that—otherwise it's a loss.
Pro Tip:Include your dispatcher in monthly cost reviews. Let them see the numbers they influence. That turns them into business thinkers—not just load planners.
This one tells you how much of the driver's available hours are actually being used to generate revenue. Dispatchers must understand that time is your #1 asset—and unused time is expensive.
The KPI:Loaded Utilization % = (Loaded Hours ÷ Available Hours) × 100
If a truck has 60 driving hours but only 30 were spent loading and moving freight, you've got a utilization issue.
Target: 80% or higher
Fixes:
Better load timing
Tight reload windows
Avoiding 'wait for tomorrow' dead time
This metric tracks how fast a driver is turned from delivery to next pickup. It's especially critical in power-only, reefer, and expedited freight.
The KPI:Turn Time = Time between delivery and next pickup
Target: Under 12 hours for OTRThe tighter this number, the better your dispatcher is planning. Long delays? That's poor forecasting or bad reload strategy.
The gold standard. This is the scoreboard that wraps up everything your dispatcher does.
If the dispatcher is killing every other KPI, it should show up here.
Target Revenue (Ranges by trailer type):
Dry Van: $5,500–$6,500/week
Reefer: $6,000–$7,000/week
Flatbed: $6,500–$8,000/week
Hotshot: $4,000–$5,500/week
If you're consistently under these ranges, revisit the load planning, deadhead, and utilization numbers. That's where the leak starts.
Not a traditional KPI, but one I make every dispatcher track.
The KPI:% of weekly freight booked off load boards
Target: Under 40%If your dispatcher is pulling 80–90% of freight from the board every week, that's not a dispatcher—it's a gambler. Load boards should be backup, not your foundation.
Encourage your team to build relationships with brokers, target dedicated lanes, and support direct shipper outreach.
Your dispatcher is the nerve center of your operation. But if they're not watching the numbers, they're flying the plane with no instruments.
KPIs aren't just paperwork—they're the pulse of your business. Train your dispatch team to live by them. Review them weekly. And tie performance goals to them. Because when your dispatcher knows the numbers, they stop reacting—and start driving results.
The post The KPI Breakdown Every Dispatcher Should Know appeared first on FreightWaves.
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