5 Simple Tips to Run an Efficient FedEx Route Business
Efficiency is the key to any successful business, and your FedEx route business is no exception.
But how do you achieve the optimum level of efficiency in your FedEx business? And what are some of the strategies that smart contractors use to ensure they stay productive and profitable? We asked a few experts in the biz and here is what they said.
- Hire smart.
Finding, recruiting, and retaining quality drivers is one of the most important things you can do for your route business. Though you may need to pay them a bit more or offer more competitive benefits, it is worth it in the long run to build a solid, reliable team that will add to your overall efficiency. While many FedEx route owners start with popular job posting sites such as Indeed, Glassdoor, or SimplyHired, several industry-specific recruiting companies have emerged in recent years to help contractors hire professional, experienced delivery drivers.
Using these businesses can help you weed out the less qualified applicants and focus primarily on the best potential additions to your team; you can even reach out to other contractors in your area to see who they recommend. Another great idea? Some of the best hires come from referrals from other drivers, so don’t forget to ask your team for their input.
- Leverage driver feedback.
Routinely checking in with your delivery drivers and listening to their feedback is an excellent way to improve efficiency. Because your drivers are the ones who are actually out on the road making the deliveries, they know their areas the best and have a better understanding about when and where traffic bottlenecks may occur. They also know which businesses require additional time per stop and can help you determine the most efficient route.
- Take care of your vehicle fleet.
This is just common sense. Staying on top of regular maintenance ensures your trucks and vans will continue to operate safely and efficiently. While occasional setbacks may happen (e.g., potholes, fender benders), keeping your vehicle fleet in peak condition means fewer problems over time and less time in the shop—which allows your drivers to deliver packages on schedule and gives you one less thing to worry about.
- Take advantage of new technology.
Route optimization (or route planning) software is one of the best things to happen to FedEx contractors in recent years. Several applications now exist that now allow drivers to find the shortest, most efficient routes possible so they can make even more deliveries while spending less time behind the wheel. You can read about the benefits of route optimization software here.
- Continuously review your processes.
Set aside time each quarter or at the end of each year to review your current processes and see what’s working and what’s not. Are there areas of your operation that could be enhanced for greater efficiency, either on the road or in the office? Has new technology emerged that can help you run your FedEx route business even better? Avoid being complacent and thinking things are good enough. Instead, always be looking for ways to improve and increase efficiency. Doing so will definitely pay off in the long run.
Want even more tips to improve efficiency?
The KR Capital blog is the premier resource for FedEx contractors, as well as for individuals who are considering buying or selling FedEx routes. As the leading FedEx brokerage firm in the country, with nearly 10 years of experience and more than $150 million in route sales, our expert team has the knowledge and best practices you need to grow and scale your FedEx route business.
Call KR Capital today at (503) 664-0753 or fill out our online form to learn more.