The Benefits of FedEx ISP Compliance and P&D Route Overlap

Photo by Vidar Nordli-Mathisen

Photo by Vidar Nordli-Mathisen

In past years, FedEx Ground contractors might have owned home delivery routes, grounds routes, or both. As part of the FedEx transition to ISPs, FedEx Ground requires a single contractor to operate both home delivery routes and ground routes within a given area by Summer 2020.

The process of merging these two segments is frequently referred to as overlap. You may also hear some contractors or consultants refer to it as ISP compliant routes, though this is only one component of ISP compliance. The two merged routes—home delivery and ground—are collectively known as FedEx Ground pickup and delivery (P&D) routes.

There are many benefits to P&D route overlap, but before we dive into those benefits: a quick reminder about what FedEx Ground home delivery and ground routes look like.

  • The FedEx Ground home delivery routes:

  • Primarily deliver to residential households.

  • Operate Tuesday through Saturday.

  • Have smaller to medium trucks and boxes.

  • Have high seasonality (with businesses often making a large part of annual revenue in the four weeks leading up to Christmas).

Ground routes are the other side of P&D routes. Ground routes:

  • Deliver primarily to commercial businesses.

  • Feature heavier packages and larger trucks.

  • Run Monday through Friday.

  • Have less seasonality than home delivery routes.

Route Overlap Highlights

One of the clearest benefits of route overlap is that it is ISP compliant. By ISP transition completion in 2020, all FedEx Ground contractors will need to operate both home delivery and ground routes in a given geographical territory on a six days-per-week schedule at scale. Most terminals minimum transition scale is 5 PSAs or 500 stops (although those numbers may be lower in designated terminals).

Moreover, overlapped P&D routes are more efficient for contractors as you can schedule your drivers so that they complete both ground and home delivery routes in a more concentrated area. In some cases, this can reduce your fuel and vehicle expenses per route.

Similarly, if you have more stops in a concentrated area you may be able to complete more stops per driver/route. This may have a positive impact on your variable stop charge.

Prepare for Overlap and Increase Your Efficiency

As you begin to think about route overlap and the six-day-per-week schedule, consult with us on how to prepare as a contractor.

If you need additional help increasing your efficiencies and planning for these changes, our team is ready to work with you!

Reach out for a free initial consult to get a sense of our consulting services and results.