Experienced contractors know that the late summer and early fall are perfect opportunities to prepare for the 4th quarter - peak season will be here before we know it. It’s going to be a busy year, according to the latest projections: e-commerce sales YTD are up nearly 10% compared to 2025.*
Between 2.0 integrations, contingency, staff turnover, and the inevitable unpredictable events that we’ll encounter between now and the end of the year, it pays - sometimes literally - to be prepared.
Keep reading for 4 key operational improvements that can transform your business in advance of peak season.
1. Right-Size Your Fleet for a Better P&L
We talk about this fleet strategy principle often - that’s because it can make or break an operation. “Right-sizing” a fleet means aligning the number and size of the vehicles in your fleet with the operational demands you experience.
This principle can have massive implications for your P&L: every unnecessary, extra route you run can cost up to $120,000/year! Are you running two extra routes? Three? It adds up fast. With fleet vehicles optimized to your routes, you’re well-positioned to save significant funds year after year.
2. Preventative Maintenance Improves Your Bottom Line
Preventative maintenance might feel like a hassle, or just another thing to get through in an already busy day, but it’s actually a major cost-saver. Identifying repair & maintenance issues early, before they become catastrophic and/or prevent dispatch, reduces your vehicle downtime and saves on the R&M costs.
Rely on your telematics data and on regularly scheduled service appointments to keep your fleet running smoothly. If you’re concerned about maximizing your fleet uptime, consider a service partner that offers on-yard, overnight maintenance.
3. Retaining Your Top Talent Preserves Your Margins
It’s more expensive to hire and train new drivers than it is to retain your experienced drivers. New drivers require onboarding, training, and time to ramp up their efficiency. Your top drivers already know their routes, their trucks, and their game plan. If they hit a bump in the road - literally or figuratively - they know what to do.
High driver turnover is an operational risk and can negatively affect your bottom line. It may sound counterintuitive, but you can secure your margins by investing in your team.
4. Plan Early For Seasonal Volume
We mean this in two ways: 1) plan your peak season to avoid needing to rely on FedEx intervention that will result in liquidated damages to handle the seasonal volume, and 2) if you have capacity, plan to take on contingency routes in and/or around your terminal - it can be a great profitability opportunity.
The prospect of liquidated damages stresses out even the most seasoned contractors - it occurs when a contractor can’t successfully complete their routes. FedEx intervenes to complete your routes, and then charges you for the expense of reallocating your volume. The consequences of failing to service your territory are, well, not great. They can include things like receiving an OTC, FedEx intervention in your operations, or even the loss of your contract.
From another angle, though, taking on contingency in your terminal represents a great profitability opportunity. If you have capacity, you can take on additional routes, which means more money in your pocket - and FedEx pays a premium for contingency service.
Have Questions on Your Fleet Strategy?
Contact us today, so you can prepare your operation well in advance of peak season. We know it’s a stressful time to be a contractor, and we want to use our 10+ years of industry expertise to help.
Whether your question is about right-sizing your fleet, vehicle procurement, repair & maintenance, or something else entirely, we’re happy to tackle your most pressing questions.
*Source: U.S. Census Bureau