Sunday, April 28, 2019

What Small Courier Businesses Need To Know About The New FedEx ISP Model

By Pamela Olson


FedEx is considered one of the most popular courier services in the world. One major reason why it has continued to gain recognition is the fact that it often collaborates with smaller, local delivery services. However, by next year, loyal contractors are expected to adapt to the latest framework. Here are some facts you need to know about FedEx ISP.

First is the change is to create more clarification in the process. Many people claim that the IC framework is complicated because it blurs the lines on the duties and responsibilities of a contractor. In fact, many smaller businesses argue that they should be treated as employees instead of a different party entirely.

The second fact is that employees working under third party couriers will have a different salary and benefit package in comparison to FedEx employees. This is to clarify the different roles, duties, and responsibilities of the persons involved. As independent employees, your direct employer is solely in charge of determining your wage and other benefits provided.

Next, as independent parties, these contractors will not receive the same salary and benefit package as actual workers under the major company. This means that owners that operate such party shall remain solely responsible for their employees until such contract ends. This is to reinforce the idea that they are not under FedEx company policies.

Another requirement is that small business owners will be responsible in choosing their own vehicles so long as it fits FedEx standards. Additionally, small courier owners will also have the freedom to renegotiate their contract after it finishes as well as arbitrate on the clauses available on the contract. This is so they play an active role in finding out which system works best for them.

For people who are currently under the IC model, they also may have the option to transition into the new model before next year. During this process, companies agree to operate both Home and Ground deliveries within their area while also adopting new resources. Additionally, business owners are expected to know certain information regarding their own courier operation.

Owners who intend to shift to the new framework will have to come prepared. This means identifying the clauses they wish to negotiate on as well as exchange multiple proposals with a FedEx negotiator. If you are still confused about the terms of the new structure, consider scheduling an appointment with a routing consultant first. Many of which have worked with various negotiators that have more or less worked with other companies as well.

The negotiation process itself can be lengthy and can average to around six weeks which can also be costly. For people who are more or less unable to decide on whether or not they should make the switch should consider hiring an ISP expert. In fact, there are various companies that help small business owners negotiate and decide on what terms they can argue and what they can settle on.

While seemingly tedious, this process is necessary especially if you want to continue your business operation. To make sure you get the best agreement possible under the new model, remember to make it a point to do as much research as you can. This allows you to list down questions and concerns while also helping you decide on whether you wish to continue working with FedEx or not.




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