How to Prepare for Peak Season: Expert Recommendations for FedEx Contractors

Peak season is right around the corner, and it’s essential to have your team and resources fully prepared for the busiest time of the year. Whether you’re a seasoned contractor or new to the game, having a solid plan in place is critical to maintaining operational efficiency and meeting customer expectations.

At eTruckBiz, we recently hosted a webinar outlining best practices and our Peak Preparation Checklist to help FedEx contractors navigate the challenges of the upcoming peak season. Below, we’ve compiled the key takeaways and recommendations to ensure you're ready to thrive during the busiest weeks of the year.

1. Recruiting: Continuous and Strategic

One of the most crucial aspects of peak preparation is ensuring you have enough drivers and support staff. However, it’s not just about filling positions; it’s about consistent recruiting and being strategic with your hires.

• Always be recruiting. Create a pipeline of qualified candidates by constantly updating your recruit list. Don’t wait until the last minute!
• Utilize part-time workers. Many potential hires, such as college students, are available to work weekends or short shifts. During peak season, these candidates can be converted into full-time drivers to help meet the demand.
• Onboarding efficiency. Ensure you have a streamlined driver onboarding system in place, including paperwork, payroll setup, and training. This avoids delays and keeps your operations running smoothly.

2. Accurate Volume Projections: Use Data Wisely

Don’t rely solely on FedEx’s projections. Use your own historical data to create an accurate dispatch plan. This will give you a clearer picture of what to expect and help you optimize resources.

• Analyze last year’s data. Fill in your historical volume numbers and project a 4% increase over last year’s trends to prepare for any unexpected surges.
• Plan dispatch accordingly. Based on your projections, build a realistic dispatch schedule that takes into account potential bottlenecks and surges during peak weeks.

3. Maximizing Capacity: Make Every Asset Count

Peak season is not the time to leave assets underutilized. Make sure your fleet is operating at full capacity, and consider shuttling bulk stops to alternative vehicles like AVPs (Alternative Vehicle Programs).

• Log your current cubic capacity. Ensure that your vehicles are being fully utilized. Don’t waste space by leaving walkways unnecessarily empty!
• Use rentals wisely. Only rent additional vehicles if absolutely necessary. Rentals can be costly, especially if they’re sitting idle on your lot. Evaluate whether AVPs can cover the extra load before committing to long-term rentals.

4. Vehicle Readiness: Avoid Unnecessary Downtime

The last thing you need during peak season is vehicle breakdowns. Take steps now to ensure your fleet is ready to go.

• Complete all maintenance by November 20. Ensure every vehicle has undergone preventive maintenance (PM) well before the peak hits. This avoids pulling vehicles off the road during crucial weeks.
• Increase truck inspections. Daily pre-trip and post-trip inspections should be heightened. Small issues that are caught early can prevent major downtime later.

5. Contingency Plans: Be Ready for the Unexpected

Things don’t always go as planned, especially during peak season. That’s why it’s crucial to have contingency plans in place.

• Late dispatches. Have a plan for handling late trailers or delayed dispatches. This could include sending certain drivers out first or shuttling packages.
• Absenteeism. Employee absences are a reality. Make sure you have backup plans for when drivers call out, whether that means having part-time drivers on standby or implementing team-based dispatching.
• Rental returns. If peak volume doesn’t materialize as expected, have a plan in place to return rentals early to avoid unnecessary costs.

6. Optimize Pay and Bonus Structures

Financial management is a significant part of a successful peak season. Ensure your pay and bonus structures are aligned with your financial goals.

• Control labor costs. Labor costs should not exceed 45% of your revenue. Re-evaluate your pay structure and ensure that it’s sustainable throughout peak.
• Team-based bonuses. Consider moving to a team-oriented bonus structure based on collective performance. This can drive collaboration and help meet overall business goals, rather than focusing on individual achievements.

7. Inventory Check: Scanners, Batteries, and Uniforms

The little things matter during peak, and running out of essential supplies can lead to unnecessary headaches.

• Check your scanner inventory. Make sure you have enough scanners and batteries to last through peak. The last thing you want is downtime due to equipment shortages.
• Uniforms. Ensure all your drivers have the appropriate uniforms, as this contributes to professionalism and positive customer impressions. Have spare uniforms in various sizes on hand in case of new hires or damages.

8. Effective Communication is Key

Communication can make or break your operations during peak. Ensure you have clear lines of communication both within your team and with FedEx.

• Internal communication. Have a clear, easy-to-use method for communicating with your entire team. Daily check-ins and weekly meetings can help keep everyone on the same page.
• Communicate with FedEx. Ensure your lines of communication with FedEx are clear and open, especially when it comes to load planning and dispatching changes.

9. Budget and Financial Planning

Make sure you have access to short-term capital to handle unexpected costs during peak season, such as higher fuel expenses or emergency repairs.

• Plan for increased expenses. Fuel costs, repairs, and even overtime wages can add up quickly during peak. A robust financial plan ensures you’re prepared for these surges.
• Evaluate your budget. Having a standard operating budget and adjusting it for peak season will help you keep your finances in check.

10. The Final Checklist

For a quick overview of everything we’ve discussed, download our complete Peak Preparation Checklist. This guide offers detailed steps to ensure you’re ready to meet peak season head-on.

Peak season is challenging, but with the right preparation and strategy, it can also be your most profitable time of the year. Take the steps now to set your business up for success, and you’ll be ready to tackle whatever peak season throws your way.

For a free copy of the Peak Preparation Checklist,

click here!