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.
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.
So as you might imagine, there is a considerable amount of chatter out there about some recent, controversial events.
Many want to know what we think about the whole situation.
We’re going to give you some thoughts, but I’d like to point out our perspective on the matter first.
This post is the second in a two-part series.
In my last blog post, I shared that people often ask me, “Should I pay my drivers by the day or by the hour?” My answer is based on comparing both methods, and I'll tell you why I recommend paying drivers by the hour.
Paying by the day is still most common because it’s a holdover from when delivery volume was consistent and only 5-days per work week.
As a result of adding residential service and e-commerce, package volume swings now vary widely on a daily basis. Paying drivers by the day has made business owner profitability more challenging.
This post is the first in a series on choosing to pay drivers by the hour, or by the day.
Almost every week, another new Contractor will ask me an old question. Should I pay my drivers hourly, or by the day? There’s truly one right answer, but complex dynamics cause many new CSP’s to believe that the old ways of paying drivers are acceptable.
Many new Contractors do not bring transportation industry experience with them. Although it’s likely they achieved significant success in their previous ventures. That success can lead to a variety of ways they address driver compensation.
New Contractors typically choose to either keep the same practices as the previous owner, or they make drastic changes. If they choose the latter, it’s because they recognize the existing compensation method is not financially feasible.
Any investment made into a business should be measured by its return. Simply put, when businesses invest in a product or an initiative, they expect that the profits created by the investment will outweigh the cost of the investment.
This is no different in the transportation industry.
If you take a minute to think about what options you could invest in, that could provide you substantial returns, what is it that comes to mind? New trucks? The latest software package that promises the world? Some other shiny object?
There is one thing, that may not be obvious, that will no doubt provide you with a lasting return on your investment. Most larger companies understand that investing in this one thing provides big time returns, and don’t mind the investment it takes.
And now, this type of investment is available to you…
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.
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?
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.
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.
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!
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.
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.
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.
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.