The Business of Independent Service Provider Contracting

So your operation has been awarded Bronze, or Silver Trending Bronze Medal status. Should you be concerned?

If you're not, you should be. The majority of Bronze or Silver Trending Bronze-rated ISPs will need and want to shed this rating before the discussion is finalized to not offer a contract renewal.

As you embark on the journey to improve your status, it’s important to remember that Inbound Local Service is no longer, on its own, the best and most immediate way to ensure the happiness of your customer (FXG). The sooner Bronze rated ISPs get comfortable with and embrace a sense of urgency about ALL the metrics that make up their status, the sooner they can make meaningful changes that impact the situation.

Topics: Business Results, Business Metrics, Business, Contract, Agreement, Medal, Bronze

At eTruckBiz, our mission is simple- to help contractors run the easiest and most profitable business possible. Recently we’ve become aware of a potentially growing problem found within several contractors’ operating agreements. In each case, these were recently negotiated contracts done by popular brokers in the FXG space.

Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, brokerage, brokers

Can anything good come from a grim FedEx earnings pre-announcement?

While the announcement and the withdrawal of next fiscal year’s guidance are ominous signs of storminess to come, there may be a silver lining. In recent months, eTruckBiz has seen a 70% increase in renegotiation requests for its clients being granted, signaling that FedEx may be more willing than ever to work with struggling contractors.

As many of you know from attending our many informational sessions over the years, the contractor model affords FedEx Ground the lowest cost provider of last mile transportation services in the industry.

It appears that now may be the time to unleash the power of this competitive advantage.

Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, recession, Rates

By now, it’s easy to see that everyone’s operating margins are being seriously squeezed.

In an effort to force some sort of helpful response, some made a plea to FXG asking for assistance in various areas to solve a worsening financial situation. 

Trust us when we say that FXG is very aware of the plight of CSP & TSP’s.

But now, there is another added challenge that has reared its head. This one, along with inflation not seen for generations, is going to create some unprecedented financial problems that will test even the best operators…

Topics: Business Results, Bookeeping, Training, Intelligence, Business Metrics, Negotiation, Profit, consulting, Money, Cash flow, Inflation, Costs, recession, expenses, renegotiation, Financial, Rates

So it’s not the 2008 financial crisis, but in the FXG Contracted Service Provider world, it could ultimately prove to be worse.

A combination of events has spawned a crisis that we foreshadowed back in August of 2021 in our post:  the Dark Side Of Density.

What we described in that post has ultimately proven to be true, and is now exacerbated by the quickly deteriorating economic conditions.

As business owners, solving problems is a daily occurance. This one however is going to need full attention, for an extended period of time.

Let's begin our look at what to do about all this by analyzing the root causes of why the issues now exist...

Topics: Business Results, ISP Negotiation, Payroll, Business, Contract, Profit, consulting, Money, Inflation, Costs, Holiday Season

Image by Lytx

This blog post is written by our friends at Lytx.

Why are KIs important to your business? We explain everything, from the metrics that matter the most to KI fleet management tips.

Keeping track of fleet management metrics is necessary in order to make objective decisions and improve performance over time. Tracking KIs is an important aspect of measuring efficiency and productivity and is integral to identifying problems and making corrections. Safety KIs, in particular, are essential to keeping your fleet running at optimum levels while ensuring minimal risk.

Topics: Business Tools, Business Results, Compliance, Training, Business Metrics, FedEx Ground, Business, Investment, safety, coaching, vedr

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?

Topics: Business Results, FedEx, Classes, Training, FedEx Ground, Metrics, Profit

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.

Topics: Business Results, FedEx Ground, Business, Metrics, contractor, Profit

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.

Topics: Driver Recruiting, Business Results, FedEx Ground, Business, Metrics, contractor, Profit

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!

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

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.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, Purchase, Fuel, Money

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.

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

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.

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

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.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, Purchase, Fuel, Money

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.

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