The Business Of Independent Service Provider Contracting

Jeff Walczak

Jeff Walczak is the Founder and CEO of eTruckBiz. He spent 16 years at FedEx Ground holding many varied management positions. He then owned a small trucking company and spent 10 years in the Banking industry, mainly with Bank of America.

Recent Posts

eTruckBiz Just Got Better - Unveiling The New Platform

Posted by Jeff Walczak on Nov 15, 2020 1:22:11 PM

For more than 8 years, we’ve been building products & services to help CSP’s transform the way they approach running their businesses.

Recently, the FXG model itself has been transforming in unprecedented ways. For most CSP’s , the days of being a “hands-on” operator are gone, and the need to provide leadership & management through systems, processes and people are quickly being implemented. The days where you or your BC’s could “jump in a truck” to fix things are gone.

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Topics: Business Structure, Business Tools, Business Planning, Timekeeping, Bookeeping, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Negotiation, model, Metrics, Profit, leadership, safety, coaching, Scheduling, Dynamic Route Optimization

New End Of Agreement (EOA) Process Forces A New Business Strategy

Posted by Jeff Walczak on Aug 2, 2020 8:39:53 AM

July 20th, 2020, was the day that FXG announced via MGB that it would make significant changes to the way they will approach your End Of Agreement (EOA) process.

It is important to understand what’s going on here, as it will impact the way you think about contract renewals with FXG.

At first glance, it appears it’s just FXG flexing its muscles again, and in some respects that’s true.

However, when you study the process, it’s easy to see that it is really an attempt to ...

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Topics: FedEx, Ground, ISP, FedEx Ground, Business, Contract, Investment, model, Agreement

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 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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Financial Health Assessment: More Important Than Service?

Posted by Jeff Walczak on Jan 27, 2020 3:52:54 PM

As of 1/10/2020, it’s a new day for FXG CSP’s.

You may recall we’ve talked about TRANSFORMING your Lifestyle Business into a 

Transportation Compan y for the past several years.

FXG's announcement of the new Financial Health Assessment added a new, critically important component for how they keep score on your business performance, and your value to them.

Engaging a third party, RapidRatings, to examine your financial health, then reporting those findings to FXG will create a measurement (number) that will become just as important as your daily service - if not more so.

As a CSP, you should understand the significance of this announcement and the reasoning behind why it will be so crucial going forward.

Let’s take a look at what is going on here...

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Topics: Business Planning, Business Results, ISP Negotiation, Business Metrics, Contract, Profit

What If Someone Buys FDX?

Posted by Jeff Walczak on Jan 2, 2020 1:20:10 PM

Is FedEx about to be purchased?

The answer is probably not...maybe.

Truth is we'll never know for sure until it happens. But don't lose sleep over it because it's not under your control.

However, it's good business to think about and reasonably prepare for change. Focus on things you can control.

Let's take a look at what a sale of FDX might look like for CSP's.

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Topics: Business Structure, Business Outlook, FedEx, Ground, ISP, FedEx Ground, Business, Contract, Selling, contractor, Purchase

WHY Is FXG Transforming Its Biz?

Posted by Jeff Walczak on Jun 30, 2019 10:33:52 AM

We’ve established for quite some time that the Transformation is coming, and now we’ve seen that it’s here.

The entire transportation industry, especially the last-mile small package segment is undergoing swift transformation.

In order to compete and even survive, FXG, and you, are going to have to accept and embrace change as it sweeps through the industry.

But why change the business model, and what does changing the model mean?

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The TRANFORMATION Is Underway

Posted by Jeff Walczak on Jun 23, 2019 2:52:57 PM

We’ve been preaching it, to those who would listen, for years.

Recently, FXG finally admitted it

You’ve been a part of it for years. But I bet a lot of you don’t even know what it is.

Now, you are actually living it.

It’s not being disguised anymore.

FXG has been telling you change is coming, but downplaying its severity in order to not upset the apple cart...too much.

So what is it?

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Topics: Business, contractor

8 Benefits To Using Our Continuous Driver Recruiting SYSTEM

Posted by Jeff Walczak on Sep 26, 2018 9:19:40 PM

Changing market needs and growing industry demand are forcing FXG, and you, to change the way you operate.

It should now be clear to you that things like; 6-day & 7-day operations, two wave dispatches, 2-man delivery teams (for IC’s & bulk), and other new & different service offerings are going to become standard operating procedure.

These operational changes might seem like great ideas to meet the evolving market demand, but after you think about them a little, you’ll notice that in order to make them work, YOU are going to have to provide more of something that most CSP's struggle to manage.

Yes, in order for you to provide what FXG wants, you are going to need more people.

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BIG Operational Changes On The Way?

Posted by Jeff Walczak on Sep 4, 2018 9:19:10 AM

As outlined in the recent message from Henry Maier, it appears more change may quickly be approaching.

These changes, if and when implemented, will have a clear and significant impact, not only on your operation, but will definitely impact your costs, and resulting bottom line.

We are not trying to be alarmist, but the changes mentioned will fundamentally change the way you conduct your business.

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Should Contractors Band Together To "Work It Out"?

Posted by Jeff Walczak on Nov 5, 2017 2:50:39 PM

Take a look around.

Do you see the number of contractors around you dwindling?

How many contractors do you see today, vs. how many there used to be 2, 5 and 10 years ago.

It's plain to see the number of contractors is shrinking, while the number of trucks grows

This results in fewer, but larger operations.

Think this is a coincidence?

It's not.

As you seek answers from FXG on how you will achieve scale, contiguous service areas and overlap, you are being told you need to "work it out" with those around you. Well that's great, but how are you supposed to do so if you have limited resources?

There is a way, but you'll need to ask yourself some questions first.

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Topics: Business Structure, Business Tools, Management, Payroll, FedEx Ground, Business, Investment, model, Merge, Purchase

What You MUST Know To Be Profitable

Posted by Jeff Walczak on Jul 14, 2017 2:39:16 PM

Recently, we were at a presentation where we discussed the ins and outs of the ISP negotiation. As part of these, we always go over what life will be like as an ISP and what other changes are on the horizon.Meeting.jpeg

As part of these lively discussions, the subject of "are ISP's profitable" always comes up.

As usual, there are those in the group that want to voice their displeasure and complain about how they are not making any money. Believe me, we hear this at all of our sessions, from coast to coast.

This time it occurred to me to ask the group, "So what do you think it takes to be profitable?"

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Topics: Business

Should I Stay Or Should I Go?

Posted by Jeff Walczak on Dec 30, 2016 3:51:46 PM

Here we are at the end of another year.

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Topics: Business Structure, Business Results, FedEx, Business Metrics, Business, Investment, model, Metrics, Selling, contractor, Profit, vendor

How To Cure The Biggest Problem With Your Growing Business

Posted by Jeff Walczak on Nov 13, 2016 12:56:57 PM

Once again, you've spoken...and we've listened!

Today, we'd like to announce that we have a new service available for you, that we
think, will REALLY change the way you operate and enable you to soar to a new level of productivity and profitability.

It's the "Cure" for what's been draining your time, and limiting your success.

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Topics: Compliance, Ground, Business

Timekeeper 2.0 has arrived, and it could save your contract!

Posted by Jeff Walczak on Aug 24, 2016 9:05:36 PM

A much improved way to keep track of your employee hours, outside of any FXG system, is now here!  

Not only will the new eTruckBiz Timekeeper keep you compliant with FXG's demands, but it can save your contract!

That's right, using the new app affords you all kinds of benefits, but none is more important than keeping you in business.

How so, you ask?

Well, here's how......

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Topics: Compliance, Timekeeping, FedEx Ground, overtime

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