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
As we’re approaching peak this year, conversations with FedEx Ground Contractors reflect a sense of urgency caused by the expected increase in package volume. From California to the east coast, everyone is feeling the pressure. Rental trucks have long been reserved by others, new trucks are scarce, the competition for finding and hiring temporary drivers is tough, and the new pre-load technology is time consuming at best.
Topics: Business Tools, Business Planning, Business Results, Business Metrics, FedEx Ground, Investment, Profit
A common thread amongst FedEx Ground Contractors is the amount of time and effort required to handle everything that’s expected to stay compliant, safe and profitable. If you’ve been tracking our blog posts about time and task management, this is the third in a series.
First, we suggested tracking where your time is spent. From there, we looked at the likelihood that working seven-days a week has resulted in losing your identity. You’re known by your job.
Now, let’s examine how to improve your working situation.
Topics: Business Tools, Business Planning, Business Results, Business Metrics, FedEx Ground, Investment, Profit
If you’re like most FXG Contractors, you don’t spend much time thinking about your retirement. You’re caught up in the daily swarm of running your business. Tucked far away on a backburner of your brain, you understand your eventual exit will happen. Will you be ready?
Thinking about retirement isn’t enough. It’s not a plan. Developing and acting on a plan will provide certainty when the time comes to exit your business.
What’s holding you back? Maybe you don’t know where to start. Maybe you think it’s too expensive, or your company is too small.
Actually, setting up a 401(k) plan isn’t expensive nor is it difficult.
Here are six reasons why you need to set up a 401(k) retirement plan.
Topics: Business Results, Management, FedEx Ground, Investment, Metrics
Did you read FedEx’ Quarterly Results issued last week? The financial news outlets wrote absolutely glowing reviews.
Yahoo! Finance headline declared, “FedEx Corp. Reports Strong First Quarter Results” while Barron’s headline gushed, “FedEx Destroys Earnings Estimates. Things Are Getting Really Good.”
Reading further down the page you’ll find, “Operating results increased due to volume growth in...U.S. domestic residential package services, yield improvement at FedEx Ground..., and one additional operating weekday.”
Could Yahoo! Finance and Barron’s write the same headlines about your last three months? You don’t issue forecasts, but if you did - would you be blowing it out of the water, too? If not, why not?
Topics: Business Tools, Business Planning, Business Results, Bookeeping, Business Metrics, FedEx Ground, Investment, Profit
Let’s start today’s blog post with a multiple choice question.
What does EVERY FedEx Ground Contractor need?
a.) Qualified drivers.
b.) Available qualified drivers to replace current drivers in the future.
c.) Qualified drivers for Peak.
d.) All the above.
Answer: d.) All of the above.
If you’re covered up with spare qualified drivers, then you’re set. This business is your oyster.
If you’re not, then finding qualified drivers is by far the biggest moving component of your revenue generating machine. Here are five recruiting changes that must happen now to be successful.
Topics: Driver Recruiting, Business Results, Management, FedEx Ground, Metrics, leadership
In the last blog post about time management, I recommended tracking your tasks. Did you? If you really want to fix an issue, you follow a process.
So, if you want to improve at managing your time and tasks, you gotta start with accurate facts. It’s the first step to discovering time to do things you'd rather be doing.
Now, it’s time for the next step.
Topics: Business Tools, Business Results, Timekeeping, Management, FedEx Ground, Metrics, leadership
Ever wished you could stop time? How about rewind time? Yep, you’ve had those thoughts. Your secret is safe with me.
The truth is our world spins around the sun in a cycle of light and dark we call days and nights. It's way beyond our control. Above our pay-grade as the saying goes. So, why do we think we can manage time?
A co-worker recommended a book written by Todd Duncan called Time Traps. Let me preface something right now, I haven’t read the whole book. I’ve skimmed the first few chapters. Gimme a small break, okay.
Topics: Business Tools, Business Results, Timekeeping, Management, FedEx Ground, Metrics, leadership
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
We recently hosted a webinar that obviously struck a chord with many Contract Service Providers (CSP’s). Attendance for the webinar was sizable. The topic was Dynamic Route Optimization, more well known by its acronym, DRO, which has understandably created a generous amount of frustration.
Topics: Business Tools, FedEx, Training, FedEx Ground, Investment, Dynamic Route Optimization, DRO
Implementing new processes can be challenging. And when it comes to implementing a new process for your business, time is money.
FedEx Ground now is requiring Contractors to outfit their vehicles with dual-facing Video Event Data Recorders (VEDRs), to implement a driver safety program to meet industry standards, contractual obligations and to meet three out of four Key Indicators (KIs).
Topics: Business Tools, Compliance, FedEx, FedEx Ground, safety
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
In today’s world with the latest AI (artificial intelligence) technology, we can use voice commands to control not only our devices,- “Alexa” / “Hey Google” “Play Crazy Train by Ozzy Osborne” (yes choice of song intended), but we can also control our lights (remember the clapper?), garage doors, air-conditioning, and appliances through apps from the palms of our hands.
One would think that a world class company like FedEx would be able to offer a highly sophisticated routing solution software as a tool to fine tune the routing for today’s exploding e-commerce market. You would be correct to hope for that to happen.
Topics: FedEx, FedEx Ground, Profit, Scheduling, Dynamic Route Optimization, DRO
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