We recently caught up with two guys heavily involved with building successful transportation companies to ask for their insights into 2021.
The first expert is a long-time CSP from the Midwest, Tracy Taylor. The second is the founder and CEO of eTruckBiz, Jeff Walczak. Both have spent the better part of their careers in the FedEx Ground arena. We engaged in a fast-paced conversation to produce our most recent Truck Talk podcast episode.
Some of the insights may surprise you.
Topics: Business Structure, Business Tools, Business Planning, Training, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Negotiation, Metrics, Profit, leadership, safety, coaching, Scheduling
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This week’s blog is the first in a two-part series of posts by Bob Tiell, an eTruckBiz Coach, who resides in Lexington, KY. His experience includes years of operational management at FedEx Ground.
Even though we're in the middle of peak, it's time to start planning our next twelve months. If planned well with the right goals set at the beginning of the year, we can make peak 2021easier and more efficient for everyone involved. If you haven't already started thinking about your 2021 goals, perhaps you'll find some helpful direction and starting points in this brief blog post.
Let's start with the likelihood that your company has grown throughout the years, and you’ve probably added supplemental routes. They then became full routes (after FedEx Ground approval).
Plus, you've probably added more drivers and a BC, or two, over the years. What's next?
Topics: Business Structure, Business Tools, Business Planning, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Metrics, Profit, leadership, safety, coaching
(Dawn Nyen, Courtesy of Dawn Nyen)
A co-worker recently suggested that I reach out to a customer who has an interesting history with entrepreneurship.
My conversation with Dawn Nyen developed into our most recent Success Story. And just in case you don’t venture over to that page on our website, I’ll share one of her lessons learned in this blog post, but trust me the interview is worth the few minutes it takes to read.
Dawn’s path to becoming a FedEx Ground Contractor started in a hotel ballroom. She answered a local newspaper ad instructing people to attend a local recruiting meeting about owning a business. Dawn and her sister were the “last ones standing” in the room. Then, her sister dropped out leaving Dawn standing all alone.
Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership
For more than 8 years, we’ve been building products & services to help CSP’s transform the way they approach running their businesses.
Recently, the FXG model itself has been transforming in unprecedented ways. For most CSP’s , the days of being a “hands-on” operator are gone, and the need to provide leadership & management through systems, processes and people are quickly being implemented. The days where you or your BC’s could “jump in a truck” to fix things are gone.
Topics: Business Structure, Business Tools, Business Planning, Timekeeping, Bookeeping, Intelligence, Business Metrics, ISP, FedEx Ground, Business, Negotiation, model, Metrics, Profit, leadership, safety, coaching, Scheduling, Dynamic Route Optimization
July 20th, 2020, was the day that FXG announced via MGB that it would make significant changes to the way they will approach your End Of Agreement (EOA) process.
It is important to understand what’s going on here, as it will impact the way you think about contract renewals with FXG.
At first glance, it appears it’s just FXG flexing its muscles again, and in some respects that’s true.
However, when you study the process, it’s easy to see that it is really an attempt to ...
Topics: FedEx, Ground, ISP, FedEx Ground, Business, Contract, Investment, model, Agreement
Don’t think it matters which MESO you choose when you negotiate?
We're sure you know you are gambling with the financial health of your biz when you pick a MESO based on:
This is what the other side hopes for, and knows many CSP's do.
It pays to do your homework and get some expert help to determine what the best offer is based on the unique characteristics of your CSA.
There's too much for you at stake to not give this issue the attention it deserves.
Topics: ISP Negotiation, Management, FedEx Ground, Business, Profit
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?
Topics: Training, FedEx Ground, Business, Scheduling
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.
Topics: Business Tools, Business Results, Management, Training, Business Metrics, FedEx Ground, Business, contractor
The panic associated with the COVID-19 pandemic has forced you into ADAPTING how your business is run.
Only weeks ago, it was unthinkable that both our United States healthcare system and our economy would be under this kind of assault.
The good news is that this bizzare event has uncovered some things that will be useful to incorporate into your business strategies going forward.
Here are some tips & suggestions as you look ahead:
Topics: Business Tools, Payroll, Business, Profit
By Brian Reeves, Reeves Delivery Group
MANAGERS WHO RUN ESSENTIAL BUSINESSES NEED TO BE RECRUITING HUGE NUMBERS OF NEW EMPLOYEES TODAY, JUST IN CASE THINGS GET 50 TIMES WORSE.
Topics: Business Planning, Driver Recruiting, FedEx Ground, Business, leadership
Are your drivers forced to comply with safety rules?
Or do they want to comply?
If you prefer the latter, maybe you should consider Ashiq Mizan’s unique approach.
Ashiq Mizan is a CSP in Philadelphia, PA, who had grown increasingly frustrated with his drivers’ lack of safety training compliance.
Despite the safety training lessons being super-easy, compliance in October was around 5%. Not only did his drivers' indifference put his money at risk, but it also showed that they were missing the bigger picture.
Topics: Compliance, FedEx, Ground, ISP, FedEx Ground, Business, Contract, Selling, contractor, Purchase, safety
Is FedEx about to be purchased?
The answer is probably not...maybe.
Truth is we'll never know for sure until it happens. But don't lose sleep over it because it's not under your control.
However, it's good business to think about and reasonably prepare for change. Focus on things you can control.
Let's take a look at what a sale of FDX might look like for CSP's.
Topics: Business Structure, Business Outlook, FedEx, Ground, ISP, FedEx Ground, Business, Contract, Selling, contractor, Purchase
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?
Topics: Business, contractor
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.
Topics: Business Structure, Business Tools, Management, Payroll, FedEx Ground, Business, Investment, model, Merge, Purchase
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.
Topics: Business Tools, ISP Negotiation, Ground, ISP, FedEx Ground, Business, Contract, Negotiation, contractor