The Business Of Independent Service Provider Contracting

Profitability Profile - Dawn Nyen

Posted by Ben Weil on Nov 22, 2020 4:26:43 PM

(Dawn Nyen, Courtesy of Dawn Nyen)

A co-worker recently suggested that I reach out to a customer who has an interesting history with entrepreneurship.

My conversation with Dawn Nyen developed into our most recent Success Story.  And just in case you don’t venture over to that page on our website, I’ll share one of her lessons learned in this blog post, but trust me the interview is worth the few minutes it takes to read.

Dawn’s path to becoming a FedEx Ground Contractor started in a hotel ballroom. She answered a local newspaper ad instructing people to attend a local recruiting meeting about owning a business. Dawn and her sister were the “last ones standing” in the room. Then, her sister dropped out leaving Dawn standing all alone.

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Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership

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

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

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

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

Business Coaching Benefits CSP's

Posted by Ben Weil on Jan 19, 2020 2:43:03 PM

An Extra Set of Eyes

Dustin Franz bought an RPS route twenty years ago in Pasco, WA. Today, he's a successful FXG contractor with multiple routes. He's traveled an interesting path to profitability.

Buying a route was his first time owning a business. Much of how he learned to deliver packages came from his own experiences plus talking to contractors in his terminal.

Others taught him what they had learned from their own mistakes, and they really couldn't teach him how to be more profitable any faster. It was no fault of their own. They hadn't been trained themselves.

Dustin performed some online research and determined he needed outside assistance.

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

Do Your Drivers Want to be Safety Compliant?

Posted by Ben Weil on Jan 12, 2020 10:00:00 AM

Are your drivers forced to comply with safety rules?

Or do they want to comply?

If you prefer the latter, maybe you should consider Ashiq Mizan’s unique approach.

Do Your Drivers See the Big Picture?

Ashiq Mizan is a CSP in Philadelphia, PA, who had grown increasingly frustrated with his drivers’ lack of safety training compliance.

Despite the safety training lessons being super-easy, compliance in October was around 5%. Not only did his drivers' indifference put his money at risk, but it also showed that they were missing the bigger picture.

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Topics: Compliance, FedEx, Ground, ISP, FedEx Ground, Business, Contract, Selling, contractor, Purchase, safety

Profitability Profile - Tracy Taylor

Posted by Ben Weil on Jan 6, 2020 1:15:00 PM


YOU CAN'T LET DRIVERS RUN YOUR BUSINESS

Business owners (CSP's) are generally likable. Drivers want to work for them. People enjoy being on their team. Nothing wrong with that. It's a good thing.

However, it's a problem when CSP's are too nice. Tracy Taylor learned that lesson early in his career as a Contractor. 

"I had 12 employees, 15 trucks and two operations hundreds of miles apart. My people needed me to make tough decisions instead of letting them manage themselves," he recalls.

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

Profitability Profile - Steve Ellis

Posted by Ben Weil on Dec 8, 2019 10:15:44 AM


RETAINING EMPLOYEES IN TIGHT LABOR MARKETS

Steve Ellis has been a contractor for almost twenty years. Many business owners who've been operating that long think their processes work because they've "always done it this way."

However, Steve's openness to studying and changing his processes make his operations exceptionally successful in a state with some of the lowest unemployment rates in the country.

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

Profitability Profile - Marena Markel

Posted by Ben Weil on Sep 2, 2019 1:07:00 PM


THE PERILS OF BUSINESS OWNERSHIP

Marena and Ralph Markel bought their first FedEx Ground route in 2005.

Of course, they were inexperienced owners, but they were committed to their future and each other. Like many couples who work together, each spouse brought different skills and strengths to the business.

After experiencing significant growth, the pair were overwhelmed by the responsibilities of leading a large team of commercial drivers including:

  • Scheduling
  • Payroll
  • Compliance
  • Training

Would the couple remain happily in business?

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

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

16+ Benefits From Using An ISP Negotiation Consultant

Posted by Carey Manders on Aug 12, 2017 12:26:24 PM

Some of you reading this have already negotiated your first ISP agreement.

Maybe more than one. Others, still have not gone through the process yet, and are wondering what to expect.

Whether you are a veteran, or going to be a rookie, we thought we'd take this opportunity to share with you what we have learned from helping more than 800 of you (as of August of 2017) successfully get through the process.

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Topics: Business Tools, ISP Negotiation, Ground, ISP, FedEx Ground, Business, Contract, Negotiation, contractor

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

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