The Business of Independent Service Provider Contracting

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?

FedEx recently announced that seven-day service will be starting in 2020. This means big changes for FXG Contractors.

"Eight Days a Week" is a popular song written by Paul McCartney and John Lennon in the 1960's about love. According to McCartney, the title was inspired not by love, but by work.

He has been quoted as saying when he asked his chauffeur how he was doing, the chauffeur replied, "Oh working hard, working eight days a week." (Wikipedia, May 22, 2019).

You and your drivers probably feel the same about FedEx' recent announcement to move FXG to a seven-day work week.

As an FXG contractor, you will soon have, or recently had, the (planned?) opportunity to leave money on the negotiating table.

How much money is up to you, and will be determined by your lack of preparation.

If you're not bothered by leaving money, then simply picking a MESO and moving on with your life is up to you.

On the other hand, for contractors who rely on profits for your livelihood - you may find this blog post helpful. After all, eTruck's mission is to help those who want expert guidance.

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.

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.

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.

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.

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.

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.

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?"

Here we are at the end of another year.

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.

Have you ever wondered how productive your operation is?

Do you want to know how efficient it is?

Do you think about how much your business might be worth?

You’re not alone.

We have people from all across the country that ask us these questions every day.

So, in response to these questions, we have developed a method for answering these questions.

We are in the unique position that we have visibility into all different types of
operations, big and small, rural, urban and yes, even linehaul. Not only can we see into these operations from a data standpoint, but as most of you know, we talk to many of you each day.

It is from our data, our over 70 years of experience, and from sharing best practices with all of you that we have crafted a very comprehensive report that gives you the answers to these burning questions.

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......

It's been a while.

Yes, we know that it has been a while since we released anything new and exciting to help you run your business.

But good things come to those who wait!

We want to give you a sneak peak at the new "Contractor Business Intelligence Dashboard"....

Why is it important to understand and monitor your weekly Driver Productivity Report that is emailed to you weekly from eTruckBiz?

Well, it could mean the difference between surviving in the ISP environment or not. 

I want to take you through the report, and show you why it is of utmost importance and why it matters to you.

First and foremost, it provides a way for you, on a weekly basis, to measure and monitor the performance of each driver to the goals or expectations you have in place for them. You should use it to give your drivers feedback and follow up on their performance.