The Business of Independent Service Provider Contracting

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

Ground CSP's, generally, possess exceptional area knowledge for the areas they service. They can utilize this knowledge to plan routes and take into account all the intricacies of a particular area.

Now, however, CSP's are starting to see that the old process of developing static routes to cover a particular service area is going the way of the horse and buggy.

Routes now need to be planned dynamically. This means that with the transformation of stop characteristics (residential) along with an evolving FXG business model (heavy focus on eCommerce), route planning needs to change constantly.

In order to remain successful, today's CSP must adapt to this new demand as the business continues to change. The number of routes and the actual route "boarders" need to be engineered in such a way to be flexible based on work load characteristics. 

Topics: Business Tools, Business Planning, Business Results, FedEx, Ground, FedEx Ground, vendor

In October 2019, James Sheban, an FXG Contractor, reached out to eTruckBiz about an urgent problem. His company, Sheban Express, had recently failed its VEDR audit. He needed expert guidance to correct the situation. And he knew that his company may lose its contract if the audit wasn't quickly addressed.

Topics: FedEx, Training, FedEx Ground, safety

Did you pay attention to the CEO's quotes in last week's press release? Maybe the rhetoric sounded familiar.

"We demonstrated once again the power of our unrivaled network and our ability to provide solutions for our customers while growing package volumes during our peak period."

"We will continue to aggressively pursue opportunities to generate profitable revenues and drive greater operational efficiencies under our current structure..."

No, the above quotes weren't from FDX. In fact, those were quotes from the U.S. Postmaster General and CEO Megan J. Brennan last Thursday.

Topics: Business Outlook, FedEx, Ground, FedEx Ground, vendor

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.

Do Your Drivers See the Big Picture?

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

It's a simple question with a simple answer. If you're a FedEx CSP, you may think - of course FedEx decides how much I'll earn because they decide what to pay for my services.

But it's not the right answer.

Focus instead on two key words, "decides" and "earn."

FedEx offers, or negotiates, estimated fixed and variable revenues, but they don't decide how much of that you'll keep.

You will make decisions during the course of the contract  determining how much you'll earn.

Don't confuse income with earnings.

Topics: Business Structure, Business Outlook, FedEx, Training, Ground, FedEx Ground, Negotiation, Profit

Wayne Gretsky, Isiah Thomas, Magic Johnson, and Pete Rose. Each was phenomenally successful at scoring goals, points, or runs in their respective sports. Coaching others to do the same? Not so successful.

Bill Belichick, Pat Riley, Bobby Cox and Tony La Russa. Polar opposites to the previous four athletes.

"What's your point?" you ask.

Business people, like athletes, don't have to be great players to be great coaches and vice versa. However, great coaches can bring out the best in others.

Topics: Business Structure, Business Outlook, FedEx, Training, Ground, FedEx Ground, Negotiation, Profit

Here we are at the end of another year.

Topics: Business Structure, Business Results, FedEx, Business Metrics, Business, Investment, model, Metrics, Selling, contractor, Profit, vendor

It's been a while.

Yes, we know that it has been a while since we released anything new and exciting to help you run your business.

But good things come to those who wait!

We want to give you a sneak peak at the new "Contractor Business Intelligence Dashboard"....

Topics: Business Tools, Compliance, FedEx, Intelligence, Ground, Business, Metrics, Dashboard

Why is it important to understand and monitor your weekly Driver Productivity Report that is emailed to you weekly from eTruckBiz?

Well, it could mean the difference between surviving in the ISP environment or not. 

I want to take you through the report, and show you why it is of utmost importance and why it matters to you.

First and foremost, it provides a way for you, on a weekly basis, to measure and monitor the performance of each driver to the goals or expectations you have in place for them. You should use it to give your drivers feedback and follow up on their performance.

Topics: ISP Negotiation, FedEx, Business Metrics, Ground, ISP, Business

Now that you know you will be going through your initial negotiation, there are a few things you need to be doing NOW. This it true no matter how far off it may seem. If you ask anyone who has already been through one, they'll most likely tell you that a solid understanding of where you currently stand (number-wise) is the foundation of a meaningful and successful process.

Not only will doing the things we are about to mention help you get more of what you want, but being prepared will dramatically lower your stress levels.

Most of us, when embarking on a journey to somewhere we've never been, get the map out (or today "Google It") to see where it is we are going. We then PLAN on how to get there.

You can PLAN your journey to your ideal ISP Destination by doing the following things:

Topics: ISP Negotiation, FedEx, ISP, FedEx Ground, Business, Contract, Negotiation, model

The time has come to look at the ISP Negotiation process from the contractor perspective. 

First, let's go ahead and call it what it is: David v. Goliath, FBS vs. FCS, Large Cap vs. Small Cap. It's the tremendous resources of FXG vs. those of an individual contractor. I think we can all agree that from the ability to influence, FXG holds the cards.

But that doesn't mean, a contractor cannot conduct a meaningful, and even successful negotiation. It just means that in order to do so, the contractor needs to do some homework, and find some very special tools and help.

Well, now, finally, the tools, and help exist...

Topics: Business Structure, Business Tools, ISP Negotiation, FedEx

Finally, it has arrived!

By overwhelming demand, we are introducing a new set of services from the highly experienced folks here at eTruckBiz, that will without question, make your life and business easier to manage, while producing information you need to conduct a more meaningful ISP negotiation.

We can now take some of the most burdensome chores out of your busy hands, so your can MANAGE your business,  instead of spending hour after hour doing "busy-work". 

Our new services produce not only the usual information you need for accounting and taxes, but turn this data into contractor-specific information that you'll use to get new, powerful insight into your FXG business.

Topics: Business Tools, FedEx, Bookeeping, Payroll