The Business of Independent Service Provider Contracting

By now, it’s easy to see that everyone’s operating margins are being seriously squeezed.

In an effort to force some sort of helpful response, some made a plea to FXG asking for assistance in various areas to solve a worsening financial situation. 

Trust us when we say that FXG is very aware of the plight of CSP & TSP’s.

But now, there is another added challenge that has reared its head. This one, along with inflation not seen for generations, is going to create some unprecedented financial problems that will test even the best operators…

Topics: Business Results, Bookeeping, Training, Intelligence, Business Metrics, Negotiation, Profit, consulting, Money, Cash flow, Inflation, Costs, recession, expenses, renegotiation, Financial, Rates

 

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 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.

Topics: Business Tools, Business Results, Compliance, Training, Business Metrics, FedEx Ground, Business, Investment, safety, coaching, vedr

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?

Topics: Business Results, FedEx, Classes, Training, FedEx Ground, Metrics, Profit

As you may know, FXG Contractors and their Managers have chosen eTruckBiz University for in depth training for almost a decade. Since our very first class in Huntsville, Alabama, we have received a tremendous response from those who understand the importance of continuous education. Thousands of hours have been spent updating, refreshing, and tweaking our curriculum. Why? Because it's critical to our customers' success.

Training your team is the same as putting fueling in your trucks. Without regularly filling up the tank, your people are running on fumes. 

In fact, FXG requires continuous safety lessons, right? That's because statistics prove when training stops, people assume it's no longer important. Hitting your Service Levels requires fuel in the trucks. Staying compliant with your Agreement requires completed safety lesson. And making your business profitable requires essential, off-site training for your key people.

However, some AO's still want to know why this type of training is important, and, is there a return on this investment? That's a great question.

Well, here are 9 reasons why the question shouldn't be if I should send my managers to the University, but how soon can we attend?

Topics: Business Structure, Business Tools, Management, Training, Investment

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

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

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

If we’re being honest with each other, where does safety rank in your business? You most likely thought, “Safety comes first. Or safety is our number one priority.”

It’s so predictable that Google Docs finished the sentence for me. Sorry to burst your bubble if you thought your safety culture was a differentiator. Everyone says it, but not everyone is being honest.

Topics: Training, FedEx Ground, safety

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

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

 

It was early April when forty-five FXG contractors plus a handful of the eTruckBiz leadership team were seated at rows of classroom-style tables inside a windowless conference room. A Saturday morning respite from the sensory-overwhelming casino at the stylish Park MGM on the Las Vegas Strip. Day One of an intensive two-day learning session about the latest ISP Negotiations.

Topics: Business Outlook, Training, FedEx Ground

Today, we'd like to announce a new initiative for 2016 that is aimed at helping you run your business better!

We would like to announce:  eTruckBiz University!

The purpose of eTruckBiz University is to be a source of continuing education and business training that you and your supervisory people cannot get from FXG. It is a way for you to get away from the daily grind so you can put things into perspective.

It is essential Business Training For FXG Contractors!

Topics: Business Tools, Classes, Training, Intelligence, Business Metrics