The Business of Independent Service Provider Contracting

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.

Topics: Business Structure, Payroll, Ground, FedEx Ground, overtime, leadership, Money

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.

Topics: Business Structure, Payroll, Ground, FedEx Ground, overtime, leadership, Money

 

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…

Topics: Classes, Training, Ground, FedEx Ground, leadership, Money

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!

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

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.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

Image by Fokusiert

Have you read Stephen Covey’s book titled 7 Habits of Highly Successful People? If so, have you thought about applying it to being a Contract Service Provider (CSP)?

We’re adapting the most relevant of his seven habits into best practices of highly successful CSP’s.

Covey’s first habit is Be ProactiveⓇ Focus and act on what you can control and influence, instead of what you can’t. This habit is especially important and a great starting point.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

This blog post is written by eTruckBiz Business Coach, Bob Tiell.

You've heard people say, "There's strength in numbers." And I'm sure you've heard, "Two heads are better than one." People say them because they're true.

Both can be said about entrepreneurship. There are lots of moving parts in a business which leads to some things getting overlooked and others missed altogether. So, business owners may benefit by asking an expert to see what can make their company stronger down the road.

I can be that other set of eyes. I am someone who’s learned what success looks like by working alongside hundreds of AO’s and BC’s throughout the United States. I’ve gained perspective on how business owners achieve their goals.

My “second career” as a Business Coach (after departing the management ranks at FedEx Ground) affords me opportunities to alternately learn from and guide the brightest Contractors in the business. Today, I’m sharing a few of the best tips that can strengthen your company for the long haul.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

(Courtesy of ...)

Hutch Motors, Inc. is an eTruckBiz customer that was recently recognized as a Regional Entrepreneur of the Year by FedEx Ground (FXG). The award recognizes service provider businesses that have excelled in service and safety - both of which are keys to success.

In addition to those two criteria, FXG considers business growth, customer satisfaction, ethics and community involvement as award components. Winners are selected from six regions in the United States plus one in Canada.

We caught up with Eric Hutchcraft, the Authorized Officer (AO) of Hutch Motors, Inc. asking him about keys to success. 

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership

(Courtesy of Ron Levine)

The first Unboxed event in Ft. Lauderdale, Florida, was our last pre-COVID event. For that reason, the two-day seminar held in February will always stick in my memory. The pandemic had not yet reached the United States. Socializing in-person was normal.

The poolside cocktail party stands out because it was a perfect sunset over the harbor, and I had the pleasure of meeting many successful Contractors there. One of the best aspects of my job is people sharing their stories of becoming FedEx Ground Contractors and what it means to them today.

In particular, Ron Levine and his son, Scott, entered into the transportation business unconventionally. Neither worked as a driver, nor a package handler, and they did not know anyone already in the business.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership

(Jeff Thompson, Courtesy of Jeff Thompson)

Thursday and Friday of last week I watched Gary, my co-worker, leading our Engineering & Operations training class. He’s a former FedEx leader with decades of operations experience. His expertise is unmatched.

Most of the students last week were BC’s. They paid close attention. That’s impressive because earlier in the week they attended the Leadership & Management class, too. BC’s are accustomed to spending most days on their feet. Sitting in a classroom all week is rare for them, but so important.

The attendees, alongside several AO’s and new owners, were truly interested in changing the trajectory of their businesses. Change is not for the weak, nor for those who cannot handle uncertainty.

The week begins by asking attendees to write down the most important questions they want answered. Some of last week’s replies were predictable, and others not so much.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership

(Jeff Thompson, Courtesy of Jeff Thompson)

What do people do with the money they make from being in business? Let's dive into that question.

Businesses usually exist for reasons other than just making money. Making money is a necessity to keep the business going, but there is probably another reason "why" a business exists.

I encountered one of the most clearly defined reasons "why" a business exists in my recent conversation with Jeff Thompson of CI Express from Kennewick, Washington. Jeff is the subject of our most recent Success Story, and the interview on our website is worth a read. You may even be inspired.

Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership

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