One of the most asked questions we get is how we see contract negotiations going. People always want to know if any kind of help is coming from FedEx.
Now, there are a couple of things that are for sure.
- Operations that have operational capacity (less than engineered productivity) are not seeing very much if anything at all in negotiations
- Those that demonstrate decent efficiency and productivity are actually seeing some charge improvements, even though it is slight and slow.
From our perspective at eTruckBiz, there are reasons for cautious optimism. Settlement charges appear to be improving gradually in the negotiations we are seeing. That is an observation from the field, not a promise that every offer is better or every contractor is earning more. The opportunity is getting more encouraging; the results still have to be built.
In this article, we will examine what contractors should understand before negotiating in an optimized Network 2.0 environment. More importantly, we will connect the contract discussion to the work that follows: re-engineering delivery operations, making density productive, and developing a driver culture that supports the new business model.