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FedEx Minimum Scale And Overlap Requirements

Within the next few years, FedEx will require contractors to meet certain standards regarding scale and sector mix of their business.  They call it Minimum Transition Scale.  Changes have already been implemented in many states which is a key requirement to the transition towards FedEx’s Independent Service Provider (ISP) business model.  Another transition to the FedEx Ground sector is overlapping contracted service areas, consolidating Ground and Home Delivery routes in one area. The following excerpt from the FedEx “Sample ISP Transition Workbook” will illustrate these changes.

FedEx - Less-than-truckload shipping

FedEx provided data on ISP minimum scale and service area overlap

Contact Premier Route Consulting for more information on the ISP and Overlap transition