The Business of Independent Service Provider Contracting

Do you spend a lot of time thinking about how to improve your transportation company operations? If you’re a FedEx Ground Contractor, there are thousands of Contractors like you sharing the same questions.

And if you’re not a FedEx Ground Contractor, but are thinking about getting in the game - there are tens of thousands people like you asking themselves questions.

Or, if you’re a Business Contact (BC), thousands of transportation company managers are wondering the same things. What are some easy ways our team can get to the top of our game?

Zig Ziglar’s famous catch phrase was, “See you at the top!”  Well, Zig, how do we get to the top?

As you may know, FXG Contractors and their Managers have chosen eTruckBiz University for in depth training for almost a decade. Since our very first class in Huntsville, Alabama, we have received a tremendous response from those who understand the importance of continuous education. Thousands of hours have been spent updating, refreshing, and tweaking our curriculum. Why? Because it's critical to our customers' success.

Training your team is the same as putting fueling in your trucks. Without regularly filling up the tank, your people are running on fumes. 

In fact, FXG requires continuous safety lessons, right? That's because statistics prove when training stops, people assume it's no longer important. Hitting your Service Levels requires fuel in the trucks. Staying compliant with your Agreement requires completed safety lesson. And making your business profitable requires essential, off-site training for your key people.

However, some AO's still want to know why this type of training is important, and, is there a return on this investment? That's a great question.

Well, here are 9 reasons why the question shouldn't be if I should send my managers to the University, but how soon can we attend?

This is a guest post by Brian Reeves of Reeves Delivery Group in Kentucky.

E-commerce is the way of the future. Customer shopping habits are rapidly changing, due to the convenience of online ordering versus traditional in-store shopping. Online shopping is predicted to continue its rapid growth. The next phase for our delivery companies will be same day delivery. Our businesses still have a long way to grow.

There are a lot of blog posts with unrealistic driver recruiting promises. This isn’t one of them. This post is the truth about recruiting FedEx Ground drivers.

Why is recruiting drivers difficult? Mainly because recruiting is convincing good, qualified people to leave their current jobs. Plus, employers mistakenly equate recruiting with hiring. And a lack of continuously recruiting is the source of most CSP's difficulties.

There are five major differences between recruiting and hiring.

Image by Gustavofrazao

In a recent blog post, we adapted Stephen Covey’s habit of Begin With the End In MindⓇ for effectively running a FedEx Ground contracting business. The key point being that success is defined by starting each task, each day, and each project with a clear vision of your destination. Success is not only focusing on what looks good, it’s focusing on what really matters.

In this blog post, we’re adapting another of Covey’s habits called Put First Things FirstⓇ. Our intention is ensuring that you and everyone on your team knows which priorities come first. When drivers and managers understand what comes first - profitability - they will be better equipped to work with you in achieving your vision!

Image by Workhorse Group Inc.

This blog post is written by our friends at Workhorse Group Inc.

Tips for transitioning to an EV fleet and the benefits for your business.

The adoption of Battery Electric Vehicles (BEVs) for fleets with daily return to base routes under 200 miles is becoming a fast-growing segment of the EV marketplace. More than two-thirds of surveyed fleets that have used BEVs plan to either pilot or purchase them in the next 12 months. *

This move to EVs can be attributed to the significant operational savings and the positive environmental impacts of an EV fleet. With more and more fleet managers moving to EVs, you may ask yourself - Is an electric fleet right for my business? Here are a few things to consider.

Image by Dave Bowen

If you missed the “Maximizing Your Linehaul Potential” event held in Kansas City, here’s a brief recap of the day.

We and one of our strategically aligned partners, Rolling Equity Leasing (REL), hosted a daylong seminar examining FedEx Ground Linehaul Contracting. The presenters swiftly covered much ground. Much has changed from the old linehaul ways and more changes are on the way.

After quick introductions, the first presentation and following discussion predominantly impacted newcomers to linehaul contracting. Topics included subjects to focus on when starting, successful business habits, and thriving in a challenging market.

It happens every year.

As the package volume builds, so do CSP / TSP stress levels, as well as the risk of an operation getting out of hand.

We surveyed a large number of our "veteran" clients to find out which tasks cause the most stress. Then, followed that up by asking how they alleviate the pressure and stress.

The results were interesting.

The good news is that the actions needed to relieve the stressors are easily accomplished and readily available.

Image by Daniel Tadevoseyan

In a recent blog post, we adapted Stephen Covey’s habit of Be ProactiveⓇ, into a best practice of running a FedEx Ground contracting business. The key point being that success is consciously controlling what you can and not blaming what’s beyond your control for hindering your vision.

In this blog post, we’re adapting Covey’s habit of Begin With the End in Mind Ⓡ . This is defined by starting each task, each day, and each project with a clear vision of your destination. Being financially successful doesn’t happen by chance. Success is not only focusing on what looks good, it’s focusing on what really matters.

Image by Xos Trucks

This blog post is written by our friends at Xos Trucks.

The passenger transportation sector has seen a significant uptick in Electric Vehicle (EV) adoption over the last several years, yet the commercial side has been slower to follow.

Now, that’s changing. Increasing environmental regulations and a growing interest in reducing costs have begun to tip the scales toward more widespread fleet electrification.

As a fleet owner and operator, you might be asking yourself, “When, how, and why should I consider electric trucks for my business?” Unfortunately, there’s no simple, one-size-fits-all answer to “how” you should go about transitioning to electric, but “when” and “why” you should go electric can be more easily summarized.

Going electric can positively impact the efficiency and profitability of your business. Here’s a summary of the main reasons why you should consider electrifying your fleet.

Image by Fokusiert

Have you read Stephen Covey’s book titled 7 Habits of Highly Successful People? If so, have you thought about applying it to being a Contract Service Provider (CSP)?

We’re adapting the most relevant of his seven habits into best practices of highly successful CSP’s.

Covey’s first habit is Be ProactiveⓇ Focus and act on what you can control and influence, instead of what you can’t. This habit is especially important and a great starting point.

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.

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.

(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. 

(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.