The Business of Independent Service Provider Contracting

Today's blog post is brought to you by our friends at Fleetcor.

As a Contractor, the work seems simple, deliver packages on time and customers will be happy.

It’s not always that easy, there’s an operational side to your business, the public never sees, that is just as important to your success. One example is managing fuel spend. Fuel fraud and misuse can tank your profits, and it’s not always glaringly obvious when it’s occurring, so it pays to introduce regular monitoring controls.

Keeping a watchful eye on expense trends can help catch fuel fraud early, before perpetrators have a chance to rack up extensive charges.

Topics: Business Planning, FedEx, Business Metrics, FedEx Ground, Business, Metrics, Fuel

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

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.

Goal Setting - Business Plans and Safety

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

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

Today's blog post is brought to you by our friends at Lytx.

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