Solutions to Common Pain Points for FedEx Contractors
As former FedEx contractors ourselves, with decades of experience in the transportation and logistics space, we’ve developed a nuanced understanding of the challenges contractors face in running successful, profitable businesses. We’re committed to sharing our knowledge and expertise with others in the industry - we believe that shared knowledge and collective, collaborative success result in great things.
That’s why this month, we’re exploring common pain points for FedEx contractors and offering actionable solutions for some of the most pressing challenges faced by our community.
Challenge: Unpredictable Fleet Expenses
Fleet expenses can fluctuate wildly on a week-to-week basis. One week, it’s (relatively) smooth sailing, and the next, you’re on the hook for a transmission replacement. Do you repair your truck or make payroll? It’s an impossible choice.
Solution: Consistent Cash Outflows
Full-service leases with included repair and maintenance are game-changers for contractors. Never worry about extra fleet expenses again - you’ll be covered by your predictable weekly payment for oil and brake changes, engine or transmission failure, and license plate renewals and sales tax - not to mention you’ll have bumper-to-bumper service coverage nationwide on your fleet of new leased vehicles.
Challenge: Extensive Downtime for Vehicle Maintenance
Are you experiencing extensive (and, therefore, expensive) fleet downtime for maintenance and repairs? Are you dispatching older, run-down and unreliable spare trucks in order to service your main fleet? Many contractors struggle with running an optimized maintenance schedule that minimizes downtime. Efficiency affects your bottom line, and maintenance can become a distraction that diverts attention from other crucial areas of your business.
Solution: Predictive Maintenance Technology and On-Site, Overnight Service
Predictive maintenance technology can track your vehicles’ key metrics, identifying the need for oil changes or tire swaps. Moreover, on-yard, overnight fleet maintenance significantly reduces your fleet downtime. Generate new operational efficiencies, optimize fleet utilization, and focus on running a successful, profitable business. And if you can get that service for your leased vehicles for free? Even better.
Challenge: Driver Turnover
Driver turnover remains a consistent problem in our industry. Training costs and operational interruptions add up in expenses. Plus, having someone no-show, suddenly quit, or perform poorly affects operations at the business level. We know from experience that longer-tenured drivers tend to be happier and perform better. So the question is: how do we retain our drivers over the longer-term?
Solution: Increase Driver Retention via New, Safe Vehicles
Drivers feel safer, happier, and more valued when they are seated in new, safe, reliable vehicles. That’s their office for the day, every day: you want to make sure they’re satisfied and comfortable there. Upgrading older fleet vehicles or regularly refreshing a fleet can represent a significant cash flow challenge for small businesses - that’s why the consistent payment schedule of acquiring brand new vehicles on a lease presents such an attractive solution to contractors. Additionally, there’s a $0 down payment required to lease trucks - reducing the barrier to entry for new, safe, efficient vehicles.
Challenge: Keeping Up with FedEx Technology Requirements
Technology develops at a rapid pace these days, and FedEx’s regulations often change to match that development. Moreover, you’re typically on the hook for big expenses every year - like down payments to buy new vehicles and equipment. These financial hurdles can be daunting for a small business. An additional added stressor may come in the form of the operational inefficiencies and productivity challenges incurred by an older fleet.
Solution: Regularly Refreshed Fleet Vehicles
It’s considered an industry best practice to refresh the oldest 10%-20% of your fleet each year. This prevents catastrophically expensive maintenance issues like an engine failure, and also helps contractors stay current with safety technology and telematics. If you’re on a staggered lease schedule, you can upgrade a portion of your fleet each year with no down payment and no hassle trading in your old vehicles. Depending on your preference, you can either buy them or return them at the end of your lease. Never fall behind the times again with a lease program.
Operating a small business in the transportation and logistics space isn’t for the faint of heart. There are many uncertainties and stressors associated with being a business owner. It’s our commitment at Hello Truck Lease to provide solutions for contractors that address your most pressing pain points in a financially sustainable way. We’ve even added a new 15k/yr mileage band option to our leases to ensure that contractors aren’t paying for things they don’t need.
Interested in learning more about how Hello Truck Lease partners with vendors and contractors to offer collaborative, cost-efficient fleet solutions? Reach out to us today at contact@hellotrucklease.com or fill out our Learn More form.
