New Key Indicators: What Contractors Need to Know

07/27/2023

Effective June 1, 2023, FedEx introduced new key indicators (KIs) under the Video Event Data Recorder (VEDR) system for grading contractors. The changes, pivoting from supervisor-based behaviors to driver-focused metrics, necessitate adjustments in management practices to ensure continued success in monthly grading. This blog breaks down these changes and how contractors can effectively navigate them.

Understanding the Past to Embrace the Future

Although the previous KIs, which centered around supervisor behaviors, are no longer in play, they continue to be valuable for shaping supervisor tasks. These encompassed punctual coaching, regular camera check-ins, and coaching effectiveness grading. Supervisors should carry forward these practices, notably the timely review of camera dashboards and driver coaching.

Decoding the New KIs

The new KIs under the VEDR system focus on driver behavior, using an average of active and available tractors with VEDR per calendar month as a parameter. Each month, data collected from approved VEDR vendors is processed by a third-party entity. The contractors receive a simple PASS or FAIL grade based on these new KIs, which are:

1. Speeding - Greater than 10 MPH: Speeding can occur anywhere, and the VEDR system can identify this, including in special zones like construction and school areas. Two (2) speeding events per normalized active & available tractor per month are allowed.

2. Distracted Driving - Use of Handheld Electronic Devices: Contractors are assessed on drivers' distracted driving behaviors, with up to two (2) distracted driving events per normalized active & available tractor allowed each month.

3. Failure to Wear Seat Belts (Any Person in the Vehicle): This KI focuses on the consistent use of seat belts by any person in the vehicle, with up to two (2) seat belt-related events allowed per normalized active & available tractor per month.

4. Following Distance <3 Seconds: This KI tests if the vehicle keeps the safe distance of at least 3 seconds from the vehicle in front. Each normalized active & available tractor can have up to five (5) following-distance events per month.

Managing the KIs: A Six-Step Guide

To navigate this transition smoothly, contractors need a proactive approach. Here is a simple six-step guide to managing these changes:

1. Know the Numbers: Determine the number of normalized active & available tractors per month and calculate the allowed number of events for each KI. Monitor these daily and take corrective actions quickly.

2. Create Policies and Procedures: Develop written policies and procedures that define expectations, parameters, and non-compliance consequences for each KI. Update safety bonuses or driver incentive programs to reflect these new KIs.

3. Coach the Drivers: On the first offense, verbal coaching should be provided to correct behavior. Third-party software like Loom or Vimeo Record can help record the session as documentation.

4. Retrain Drivers: On the second offense, retrain drivers with video training focusing on the specific KI. This will reinforce the significance of the KI and how to avoid future events.

5. Discipline Drivers: A third offense within a month should result in written disciplinary action, potentially leading to the driver being removed from dispatch or even terminated.

6. Challenge Events: Check with your VEDR provider for the process to challenge any inaccurate events. Dispute these as soon as possible to avoid end-of-the-month rush.

In Conclusion

The transition to the new KIs requires a proactive, organized approach. It is crucial to manage driver teams effectively, with coaching, retraining, and disciplinary procedures in place for repeated offenses. Reviewing VEDR dashboards daily, preparing retraining videos, having written disciplinary actions in place, and disputing inaccurate events promptly are key steps towards success. Adapt to these changes swiftly and increase your chances of passing your KIs every month.