We recently hosted a webinar that obviously struck a chord with many Contract Service Providers (CSP’s). Attendance for the webinar was sizable. The topic was Dynamic Route Optimization, more well known by its acronym, DRO, which has understandably created a generous amount of frustration.
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?
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.
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.
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.
It's a simple question with a simple answer. If you're a FedEx CSP, you may think - of course FedEx decides how much I'll earn because they decide what to pay for my services.
But it's not the right answer.
Focus instead on two key words, "decides" and "earn."
FedEx offers, or negotiates, estimated fixed and variable revenues, but they don't decide how much of that you'll keep.
You will make decisions during the course of the contract determining how much you'll earn.Don't confuse income with earnings.
Wayne Gretsky, Isiah Thomas, Magic Johnson, and Pete Rose. Each was phenomenally successful at scoring goals, points, or runs in their respective sports. Coaching others to do the same? Not so successful.
"What's your point?" you ask.
Business people, like athletes, don't have to be great players to be great coaches and vice versa. However, great coaches can bring out the best in others.
It was early April when forty-five FXG contractors plus a handful of the eTruckBiz leadership team were seated at rows of classroom-style tables inside a windowless conference room. A Saturday morning respite from the sensory-overwhelming casino at the stylish Park MGM on the Las Vegas Strip. Day One of an intensive two-day learning session about the latest ISP Negotiations.
We would like to announce: eTruckBiz University!
The purpose of eTruckBiz University is to be a source of continuing education and business training that you and your supervisory people cannot get from FXG. It is a way for you to get away from the daily grind so you can put things into perspective.
It is essential Business Training For FXG Contractors!