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    4 Replies Latest reply on Oct 15, 2014 1:28 PM by krroutebrokers

    P and D vs ISP???

    soesahead Wayfarer

      Can someone explain the difference......thanks S

        • Re: P and D vs ISP???
          Marketing Guy Adventurer

          Silly question, but what does P & D stand for in this case?

          • Re: P and D vs ISP???
            krroutebrokers Newbie

            FedEx is in the process of transitioning much of its independent contractors from the IC (independent contractor) model to the ISP (independent service provider) model.  P&D (pickup and delivery) refers to the type of service the contractor provides, not the model under which they provide it.  FedEx ground contracts with independent contractors on the P&D side, as well as the linehaul side.  P&D refers to "ground" (essentially local commercial deliveries) and "home delivery" (residential deliveries).  In contrast, the linehaul side of the business consists of long-distance runs that often travel state to state utilizing large tractor trailers.

             

            The "ISP" model outlines how the local P&D (ground and home delivery) contracts with FedEx.  Some of the main differences between the ISP model vs. the IC model include:

             

            • ISP contracts are multi-year, whereas IC contracts are 1 year
            • ISP contractors have the ability to negotiate their contracts/compensation with FedEx, whereas IC contractors are paid based upon a more fixed set of metrics
            • ISP contracts define the area to be serviced, allowing contractors to put on as many or as few trucks to service the area, so long as the packages are being efficiently delivered.  IC contracts define the service areas by "route" and FedEx mandates that each route (called a "PSA") run at least 1 truck full-time.

             

            Hopefully this helps.  More information can be found on our website at http://www.KRRouteBrokers.com