Small Business Owners Call for Change from FedEx Ground in the Face of Inflation, Financial Challenges
LAS VEGAS, Aug. 22, 2022 /PRNewswire/ — Approximately 3,500 FedEx Ground contractors, industry analysts, professionals and special guests convened this weekend at Route Consultant’s 2022 Contractor Expo to discuss the inflation-based and contractual challenges facing the network of small business owners that power the FedEx Ground network.
“I want to see FedEx Ground remember their identity. FedEx Ground is an amazing delivery company,” said Spencer Patton, Founder and President of Route Consultant. “They are a $60 billion dollar company that could be a $120 billion dollar company if we can work together through these challenges.”
Patton’s keynote address – which was also viewed by an additional 2,500 professionals via the Expo’s live stream – detailed the areas that FedEx Ground and its contractor network can work together to create a more viable economic model and prevent the network from collapse due to inflation, high gas prices, and contract issues.
The keynote address is available on the Route Consultant YouTube channel.
Patton – speaking on behalf of his own business challenges with the FedEx Ground model – addressed the three key actions he believes FedEx Ground could take to restore their win-win relationship with contractors:
- FedEx Ground should end Sunday deliveries. FedEx Ground Sunday deliveries financially cripple the network: and both contractors and FedEx Ground lose money on Sunday deliveries. The service has been maligned since its launch and puts an enormous strain on the small businesses powering the network.
- Contractual changes. Recent contractual changes pushed through by FedEx Ground, without support from its contractor network, fundamentally undermine the integrity and financial viability of the contractor model.
- FedEx Ground staffing. Terminal and corporate staff from FedEx Ground have little to no experience in small business or logistics operations. FedEx Ground needs to educate its staff and restore appropriate communications between its staff and the small business owners in the network.
“Part of true leadership is coming up and taking accountability when accountability has to be taken,” said Patton. “What I will tell you here is that I will be accountable as we move through this process and I beg that FedEx Ground show the same accountability to its contractors.”
Patton operates 225 FedEx Ground routes in 10 states. Starting November 25, 2022, he will no longer operate his routes if the financial terms of his contracts aren’t adjusted. Between now and the end of the year he will no longer be part of FedEx Ground’s critical contingency network, which services abandoned or underserved delivery territories.
Of those changes, Mr. Patton notes, “My businesses will no longer subsidize FedEx Ground.”
Contractor Expo had a wide range of smart business and cost-saving solutions for its large audience of small business owners. More than 80 industry vendors attended the event to support the network of small business owners, including Xos Trucks, Beans Route, Bright Flag Recruiting, Bridgestone Tires, and Ground Cloud. The business owners also learned about the recently announced Route Consultant Purchasing Alliance (RCPA), an organization offering cost-savings based on collective purchasing power, and the Trade Association for Logistics Professionals, an advocacy organization for contractors.
Route Consultant is the leader in education for owners of FedEx Ground and Amazon DSP logistics operations. Additionally, Route Consultant offers consulting services to new and experienced professionals in the logistics community. The Route Consultant team also facilitates the greatest share of transactions in the logistics space.
At its core, the Trade Association for Logistics Professionals (TALP) advocates for small business owners in the industry, including owners of last mile delivery routes and linehaul runs, based on their shared experiences, successes and challenges. TALP was the vision of Spencer Patton, the owner-operator of one of the largest number of FedEx Ground routes in the United States. Mr. Patton is also Founder and President of Route Consultant, an organization that provides consulting and brokerage services to FedEx contractors across the country.
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SOURCE Route Consultant