The Business Of Independent Service Provider Contracting

Are You Gambling On Getting The Most Out Of Your New Negotiation?

Posted by Carey Manders on Jun 14, 2020 12:48:33 PM

Don’t think it matters which MESO you choose when you negotiate?

Wanna bet?

We're sure you know you are gambling with the financial health of your biz when you pick a MESO based on:

  • What other CSP's say is the best one to take on Facebook
  • The one with the best incentive bonuses
  • Thinking they hide the best one behind door #3
  • No Research, No Analysis, No Data

This is what the other side hopes for, and knows many CSP's do.

It pays to do your homework and get some expert help to determine what the best offer is based on the unique characteristics of your CSA.

There's too much for you at stake to not give this issue the attention it deserves.

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Topics: ISP Negotiation, Management, FedEx Ground, Business, Profit

DRO Expectations vs Reality

Posted by Dave Bowen on Jun 4, 2020 4:40:10 PM

In today’s world with the latest AI (artificial intelligence) technology, we can use voice commands to control not only our devices,- “Alexa” / “Hey Google” “Play Crazy Train by Ozzy Osborne” (yes choice of song intended), but we can also control our lights (remember the clapper?), garage doors, air-conditioning, and appliances through apps from the palms of our hands.

One would think that a world class company like FedEx would be able to offer a highly sophisticated routing solution software as a tool to fine tune the routing for today’s exploding e-commerce market. You would be correct to hope for that to happen.

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Topics: FedEx, FedEx Ground, Profit, Scheduling, Dynamic Route Optimization, DRO

Delivering Every Day All Year Long

Posted by Ben Weil on May 28, 2020 11:15:00 AM

Delivering every day. That was the title FedEx chose for its announcement in May 2019 about moving to a seven-day residential delivery operation.

The press release stated, “We’re accelerating our process of integrating nearly two million SmartPost packages previously delivered through the U.S. Postal Service into FedEx Ground operations. By the end of 2020, all home deliveries will be sorted and delivered within the same ground network. Streamlining the home delivery network creates greater density, more efficiency, and potential cost savings for our shippers.”

That’s old news now, but here we are in May 2020. Is hindsight really 20/20? Maybe some folks suffer from 20/40 hindsight?

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Topics: Training, FedEx Ground, Business, Scheduling

5 Reasons To Engineer Your Operation While Embracing DRO

Posted by Jeff Walczak on May 17, 2020 1:14:41 PM

Okay, we know what many folks are going to say. The DRO is troublesome and may not work.

While it is true that learning to use it effectively is difficult, it actually works fine. It’s the theory and engineering principals behind it that are difficult to maneuver and grasp.

The move from static route creation and management to that of a very dynamic (always changing) way of route management is now at hand. Thanks to the virus, the premature push to unprecedented levels of eCommerce, and the need for 7 day service, all are being forced to transform quicker than originally planned.

The time to embrace Dynamic Route Optimization is at hand. The fundamental culture change to Dynamic vs. Static planning is now underway.

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Topics: Business Tools, Business Results, Management, Training, Business Metrics, FedEx Ground, Business, contractor

How To Crush Your Routing Goals

Posted by Ben Weil on May 5, 2020 1:58:27 PM

Ground CSP's, generally, possess exceptional area knowledge for the areas they service. They can utilize this knowledge to plan routes and take into account all the intricacies of a particular area.

Now, however, CSP's are starting to see that the old process of developing static routes to cover a particular service area is going the way of the horse and buggy.

Routes now need to be planned dynamically. This means that with the transformation of stop characteristics (residential) along with an evolving FXG business model (heavy focus on eCommerce), route planning needs to change constantly.

In order to remain successful, today's CSP must adapt to this new demand as the business continues to change. The number of routes and the actual route "boarders" need to be engineered in such a way to be flexible based on work load characteristics. 

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Topics: Business Tools, Business Planning, Business Results, FedEx, Ground, FedEx Ground, vendor

New Driver Safety Training

Posted by Ben Weil on Apr 27, 2020 2:45:00 PM

If we’re being honest with each other, where does safety rank in your business? You most likely thought, “Safety comes first. Or safety is our number one priority.”



It’s so predictable that Google Docs finished the sentence for me. Sorry to burst your bubble if you thought your safety culture was a differentiator. Everyone says it, but not everyone is being honest.

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Topics: Training, FedEx Ground, safety

The President and the FedEx Ground Contractor

Posted by Ben Weil on Apr 19, 2020 7:22:40 PM

Do you feel like you’re in a thankless job? If so, you’re not alone. Most FedEx Ground CSP’s can provide daily evidence to support that conclusion. You work daily ensuring that packages are delivered (and picked up) safely to and from the correct addresses. Many times, you do this based on information that leaves something to be desired.

That’s why last week’s ceremony in front of the White House was so extraordinary. The President of the United States spent a few minutes recognizing truckers including a FedEx Ground Contractor.

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Topics: FedEx Ground, contractor, leadership, safety

Lessons Learned & Adapting For The Future

Posted by Ben Weil on Apr 13, 2020 9:45:00 PM

The panic associated with the COVID-19 pandemic has forced you into ADAPTING how your business is run.

Only weeks ago, it was unthinkable that both our United States healthcare system and our economy would be under this kind of assault.

The good news is that this bizzare event has uncovered some things that will be useful to incorporate into your business strategies going forward.

Here are some tips & suggestions as you look ahead:

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Topics: Business Tools, Payroll, Business, Profit

Brian Reeves on Recruiting

Posted by Ben Weil on Apr 2, 2020 5:08:08 PM

Today's blog post is by our guest blogger, Brian Reeves, of Reeves Delivery Group.

By Brian Reeves, Reeves Delivery Group

MANAGERS WHO RUN ESSENTIAL BUSINESSES NEED TO BE RECRUITING HUGE NUMBERS OF NEW EMPLOYEES TODAY, JUST IN CASE THINGS GET 50 TIMES WORSE.

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Topics: Business Planning, Driver Recruiting, FedEx Ground, Business, leadership

How To Solve Your Two Biggest C-Crisis Problems

Posted by Jeff Walczak on Mar 22, 2020 5:04:50 PM

 

This week’s post comes with the following disclaimer:

There is a serious health issue (Pandemic) running its course and it should be given any and all attention and appropriate measures to curb the spread. Protocols need to be respected and followed. We are in no way attempting to downplay this issue or deny its existence. No attempt is being made to ignore or suggest that action contrary to any official recommendations be taken.

Keep in mind that anything we are about to say below is in the light of our disclaimer above.

Read on for some insight on how to deal with your two biggest issues right now.

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10 Differences Between New CSP's & Old Contractors

Posted by Ben Weil on Mar 15, 2020 3:06:54 PM

Here's a quote that correctly sums up today's blog post , "The past is in your head. The future is in your hands."

You'll recall that our last blog post dealt with the fact that today's FXG Contracting environment is very different than it was several years ago. More specifically we said what is being done has not changed as much as how it's being done differently.

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Topics: FedEx Ground, contractor, Profit, leadership

What A New CSP Looks Like

Posted by Ben Weil on Mar 8, 2020 8:30:00 PM

What was once “wild speculation” has now obviously become reality. As most of you know, we were among the first and few trumpeting the change of your business from lifestyle to transportation company. Now that the transformation is at least halfway complete, it should now be obvious that “what worked in the past won’t work in the future”.

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Topics: FedEx Ground, contractor, Profit, leadership

How to Handle a VEDR Audit

Posted by Ben Weil on Feb 17, 2020 9:10:06 AM

In October 2019, James Sheban, an FXG Contractor, reached out to eTruckBiz about an urgent problem. His company, Sheban Express, had recently failed its VEDR audit. He needed expert guidance to correct the situation. And he knew that his company may lose its contract if the audit wasn't quickly addressed.

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Topics: FedEx, Training, FedEx Ground, safety

Walking In The Spider Webs

Posted by Ben Weil on Feb 10, 2020 2:15:00 PM

Did you pay attention to the CEO's quotes in last week's press release? Maybe the rhetoric sounded familiar.

"We demonstrated once again the power of our unrivaled network and our ability to provide solutions for our customers while growing package volumes during our peak period."

"We will continue to aggressively pursue opportunities to generate profitable revenues and drive greater operational efficiencies under our current structure..."

No, the above quotes weren't from FDX. In fact, those were quotes from the U.S. Postmaster General and CEO Megan J. Brennan last Thursday.

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Topics: Business Outlook, FedEx, Ground, FedEx Ground, vendor

Profitability Profile - Preston Wengert

Posted by Ben Weil on Feb 3, 2020 4:36:12 PM

HOW A COMMUNITY COLLEGE DROPOUT FOUND ENTREPRENEURIAL SUCCESS

You think your market conditions are tough, what about Colorado? According to the latest Bureau of Labor Statistics (BLS) data, the Denver area's average weekly wages are $1,242. Think it's easy to find drivers? The BLS also lists the area unemployment rate at 2.4%. Way lower than the U.S. average.

What made a young guy from out of town who knew nothing about the logistics industry think that he could buy a Ground business to support his growing family? Sure he's smart, but he's so young.

"There's no selling, no advertising, no collecting money from past due accounts. I'm not saying it's easy, but it beats a lot of other options out there," Preston Wengert says.

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Topics: Business Structure, Business Tools, Business Results, Management, ISP, FedEx Ground, contractor, Profit

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