Parcel - June 2008 - (Page 15)

Regional carriers should be evaluating their independent contractor status right now and having discussions with labor law attorneys. is more suitable than one who only picks up and delivers in Los Angeles, even if the Los Angeles carrier has more same day deliveries. Remember that once they acquire a carrier, all other carriers become the competition. The technology a carrier uses or doesn’t use is an issue also. If UPS, DHL and FedEx choose to go the IC route, they may not allow, as they have done overseas, the IC to access their proprietary systems. So the bottom line is that if you are interested in hooking up with one of them as an agent or an acquisition, you will potentially need a compatible system to provide electronic pickup and delivery information, including digital signatures. Waiting to implement a system only if you receive interest from them is a deﬁnite deal killer. Last, but not least, is that they will target a professional company that mimics their values. Uniforms, clean trucks, professional looking drivers and customer service representatives are all a plus. Keep in mind also that if one of these companies does not target you for acquisition, you’ll be competing with them directly for years to come. So the word to the wise is to prepare for the future, one way or another. Bob Ferri and Rob Shirley own XPship, a company focused on future technology for the transportation industry. They can be contacted through the company’s website at www.XPship.com. ■ Whatever the future outcome of IC status, expect the IRS to take a hard look at the regional carrier industry where ICs are the norm. Regional carriers should be evaluating their independent contractor status right now and having discussions with labor law attorneys. You don’t want the IRS to determine that your ICs are actually employees and you are liable for all past employee taxes. So what will the “Big Three” look for in targeting a regional carrier? Typically, the ﬁrst thing they’ll look at is size and market dominance. Like the rest of us, if they’re going to spend money, they want the biggest bang for the buck. As they’ll want to consolidate and reduce costs whenever possible, they’ll also evaluate the speciﬁc geography covered and compare it to their own lane segments. A carrier that covers all of California www.PARCELindustry.com May 2008 15 http://www.XPship.com http://www.PARCELindustry.com

Table of Contents Feed for the Digital Edition of Parcel - June 2008

Parcel - June 2008 Contents Editor's Note What Would Augello Say? Success Means Never Being Satisfied Moving from Manual to Automated Fulfillment Regional Carriers Move to the Forefront Understanding Warehouse Management Systems Negotiating Carrier Contracts It’s All About the Data! How Long Will The East-West Trade Imbalance Last? Educate the Shipper, or Fix the Software? Product Profile On the Mark New Products & Services Advertiser Index Wrap Up

Parcel - June 2008

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