FedEx best practices

Optimizing Operations For FedEx Routes

What do you need to do in order to improve your FedEx route operations? Your route is a big investment, and you want to ensure that it always runs smoothly. That is why you need to consider some of the things that you can do to help your route reach its full potential.

Why Route Operations?

When you purchase a route or routes, you have a multitude of options at your disposal. You can run your route yourself, you can manage it from afar, either way, you need to ensure that you are doing the right things to deliver packages with optimal customer service and efficiency. Not only will this help your reputation, but it will result in more money based on your FedEx contract.

Understand Your Bonuses

All FedEx contractors are entitled to bonuses for service that goes above and beyond. This can include things like customer service and safety incentives, meaning that you if you do the best job to deliver packages safely, securely, and with your customer in mind, you stand to benefit. This is one of the main reasons why people invest in FedEx routes because they believe they can do it better (and profit).

Hire The Right People

Directly building off the idea of performance incentives, one of the best things that you can do when buying a FedEx route is investing in the right people. Owners who manage from afar can be successful, but it always helps to run your route yourself (even in the beginning) so that you can get a sense of the work involved, and the kind of attitude you need to succeed. When you have on-the-ground experience, your eye for talent will considerably improve.

Know Your Margins

One of the biggest mistakes that investors make when purchasing a FedEx route is not understanding the margins. When it comes to pick-up-and-delivery routes, the typical margin is between 15 – 20% of revenue. While not over the moon, this is obviously a healthy business to run! If something is advertised as higher, it is typically being exaggerated, which is why most investors know that the real money is in owning multiple routes.

Optimize Your Success Today

If you want your FedEx route operations to be successful, you need to be doing the things that you set you up for success today, tomorrow, and years down the road. When you know your route’s potential, its actual returns, and when you have the right people by your side, your operations are bound to succeed. In fact, it can be the difference between a wasted investment and the best of your life. How will you make it your own?

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