The Business of Independent Service Provider Contracting

In this uncertain time, it seems like there was one thing that was certain.

It appeared that stops and volume were marching forward, with no regard for the turbulence and difficulty that we were told surrounds us. 

In a roughly 2+ year environment of growth, the rising revenue tide hid many tree stumps, and kept the good ship Contracted Service Provider sailing happily into the sunset.

All was well.

Until it wasn’t.

Recently, the volume has leveled off and in many cases, retreated.

This dip is not too much different from a “normal” summer, but this time, it hurts...bad. 

Let’s look at why.

Topics: Business Tools, Business Planning, Management, Business, Investment, contractor, Profit, Money, less, settlement, Cash flow

This blog post is written by eTruckBiz Business Coach, Bob Tiell.

You've heard people say, "There's strength in numbers." And I'm sure you've heard, "Two heads are better than one." People say them because they're true.

Both can be said about entrepreneurship. There are lots of moving parts in a business which leads to some things getting overlooked and others missed altogether. So, business owners may benefit by asking an expert to see what can make their company stronger down the road.

I can be that other set of eyes. I am someone who’s learned what success looks like by working alongside hundreds of AO’s and BC’s throughout the United States. I’ve gained perspective on how business owners achieve their goals.

My “second career” as a Business Coach (after departing the management ranks at FedEx Ground) affords me opportunities to alternately learn from and guide the brightest Contractors in the business. Today, I’m sharing a few of the best tips that can strengthen your company for the long haul.

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

(Courtesy of ...)

Hutch Motors, Inc. is an eTruckBiz customer that was recently recognized as a Regional Entrepreneur of the Year by FedEx Ground (FXG). The award recognizes service provider businesses that have excelled in service and safety - both of which are keys to success.

In addition to those two criteria, FXG considers business growth, customer satisfaction, ethics and community involvement as award components. Winners are selected from six regions in the United States plus one in Canada.

We caught up with Eric Hutchcraft, the Authorized Officer (AO) of Hutch Motors, Inc. asking him about keys to success. 

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

(Courtesy of Ron Levine)

The first Unboxed event in Ft. Lauderdale, Florida, was our last pre-COVID event. For that reason, the two-day seminar held in February will always stick in my memory. The pandemic had not yet reached the United States. Socializing in-person was normal.

The poolside cocktail party stands out because it was a perfect sunset over the harbor, and I had the pleasure of meeting many successful Contractors there. One of the best aspects of my job is people sharing their stories of becoming FedEx Ground Contractors and what it means to them today.

In particular, Ron Levine and his son, Scott, entered into the transportation business unconventionally. Neither worked as a driver, nor a package handler, and they did not know anyone already in the business.

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

(Jeff Thompson, Courtesy of Jeff Thompson)

Thursday and Friday of last week I watched Gary, my co-worker, leading our Engineering & Operations training class. He’s a former FedEx leader with decades of operations experience. His expertise is unmatched.

Most of the students last week were BC’s. They paid close attention. That’s impressive because earlier in the week they attended the Leadership & Management class, too. BC’s are accustomed to spending most days on their feet. Sitting in a classroom all week is rare for them, but so important.

The attendees, alongside several AO’s and new owners, were truly interested in changing the trajectory of their businesses. Change is not for the weak, nor for those who cannot handle uncertainty.

The week begins by asking attendees to write down the most important questions they want answered. Some of last week’s replies were predictable, and others not so much.

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

(Jeff Thompson, Courtesy of Jeff Thompson)

What do people do with the money they make from being in business? Let's dive into that question.

Businesses usually exist for reasons other than just making money. Making money is a necessity to keep the business going, but there is probably another reason "why" a business exists.

I encountered one of the most clearly defined reasons "why" a business exists in my recent conversation with Jeff Thompson of CI Express from Kennewick, Washington. Jeff is the subject of our most recent Success Story, and the interview on our website is worth a read. You may even be inspired.

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

We recently caught up with two guys heavily involved with building successful transportation companies to ask for their insights into 2021.

The first expert is a long-time CSP from the Midwest, Tracy Taylor. The second is the founder and CEO of eTruckBiz, Jeff Walczak. Both have spent the better part of their careers in the FedEx Ground arena. We engaged in a fast-paced conversation to produce our most recent Truck Talk podcast episode.

Some of the insights may surprise you.

Topics: Business Structure, Business Tools, Business Planning, Training, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Negotiation, Metrics, Profit, leadership, safety, coaching, Scheduling

This week’s blog is the first in a two-part series of posts by Bob Tiell, an eTruckBiz Coach, who resides in Lexington, KY. His experience includes years of operational management at FedEx Ground.

Goal Setting - Business Plans and Safety

Even though we're in the middle of peak, it's time to start planning our next twelve months. If planned well with the right goals set at the beginning of the year, we can make peak 2021easier and more efficient for everyone involved. If you haven't already started thinking about your 2021 goals, perhaps you'll find some helpful direction and starting points in this brief blog post.

Let's start with the likelihood that your company has grown throughout the years, and you’ve probably added supplemental routes. They then became full routes (after FedEx Ground approval).

Plus, you've probably added more drivers and a BC, or two, over the years. What's next?

Topics: Business Structure, Business Tools, Business Planning, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Metrics, Profit, leadership, safety, coaching

(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.

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

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.

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

As we’re approaching peak this year, conversations with FedEx Ground Contractors reflect a sense of urgency caused by the expected increase in package volume. From California to the east coast, everyone is feeling the pressure. Rental trucks have long been reserved by others, new trucks are scarce, the competition for finding and hiring temporary drivers is tough, and the new pre-load technology is time consuming at best.

Topics: Business Tools, Business Planning, Business Results, Business Metrics, FedEx Ground, Investment, Profit

A common thread amongst FedEx Ground Contractors is the amount of time and effort required to handle everything that’s expected to stay compliant, safe and profitable. If you’ve been tracking our blog posts about time and task management, this is the third in a series.

First, we suggested tracking where your time is spent. From there, we looked at the likelihood that working seven-days a week has resulted in losing your identity. You’re known by your job.

Now, let’s examine how to improve your working situation.

Topics: Business Tools, Business Planning, Business Results, Business Metrics, FedEx Ground, Investment, Profit

Did you read FedEx’ Quarterly Results issued last week? The financial news outlets wrote absolutely glowing reviews.

Yahoo! Finance headline declared, “FedEx Corp. Reports Strong First Quarter Results” while Barron’s headline gushed, “FedEx Destroys Earnings Estimates. Things Are Getting Really Good.”

Reading further down the page you’ll find, “Operating results increased due to volume growth in...U.S. domestic residential package services, yield improvement at FedEx Ground..., and one additional operating weekday.”

Could Yahoo! Finance and Barron’s write the same headlines about your last three months? You don’t issue forecasts, but if you did - would you be blowing it out of the water, too? If not, why not?

Topics: Business Tools, Business Planning, Business Results, Bookeeping, Business Metrics, FedEx Ground, Investment, Profit

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.

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

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.

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