XPO Logistics

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XPO Logistics, Inc.
TypePublic
Founded1989
HeadquartersGreenwich, Connecticut, U.S.
Number of locations
744 (2021)
Key people
Brad Jacobs
(Chairman and CEO)
Ravi Tulsyan
(CFO)
Mario Harik
(CIO; Acting President, LTL)
Drew Wilkerson
(President, Freight Brokerage)
RevenueDecrease US$12.81 billion (2021)
Increase US$616 million (2021)
Decrease US$341 million (2021)
Total assetsIncrease US$8.71 billion (2021)
Number of employees
44,000 (2021)
Websitewww.xpo.com Edit this at Wikidata
Footnotes / references
[1][2][3][4][5][6]

XPO Logistics is an American freight transportation company that primarily provides less-than-truckload and truck brokerage services in 18 countries.[7][8][9] XPO's corporate headquarters are located in Greenwich, Connecticut, U.S.[10]

History[edit]

XPO Logistics[edit]

In September 2011, American businessman Brad Jacobs[11][12] acquired Express-1 Expedited Solutions, Inc. and became its chairman and CEO. The company changed its name to XPO Logistics – a reference to Express-1's AMEX ticker symbol, "XPO" – and began acquiring other companies in the transportation and logistics sector.[13][14]

In March 2012, XPO opened a national operations center in Charlotte, N.C. and listed its shares on the New York Stock Exchange in June of the same year.[15]

On April 28, 2015 XPO Logistics announced a $3.56 billion (3.24 billion euros) deal to acquire the European based Norbert Dentressangle, including acquired debt.[16] The acquisition was completed on June 8th, 2015 and the Dentressangle brand was phased out from June 2015.[17] This helped XPO expand into the European trucking and logistics market.

On September 9th, 2015 XPO acquired Con-way for $3 billion, this move helped grow XPO's LTL operations in North America as XPO absorbed 16,600 employees, more than 365 operating locations, 16,000 dock doors and 32,750 tractors and trailers from the Con-Way purchase.[18] Roughly one year later XPO sold their truckload division (acquired from Con-Way) to the Canadian based TransForce for $558 million in cash.[19]

In June 2016, XPO was included in the Fortune 500 list of the largest U.S. corporations based on revenue.[20][21] By May 2019, XPO was ranked 180th on the Fortune 500 list.[22] XPO Logistics, Inc. was the 7th best-performing stock of the last decade on the Fortune 500, with its share price rising more than 1,000% from the time its CEO, Brad Jacobs, took control.[23][24]

Spin-off of contract logistics segment[edit]

In December 2020, XPO announced plans to spin off its logistics segment as GXO Logistics, creating two, independent companies: XPO as a provider of freight transportation services and GXO as the world's largest pure-play provider of contract logistics services.[25][26][27] The spin-off was completed in August 2021, with Brad Jacobs as Non-Executive Chairman and Malcolm Wilson as CEO.[28][29]

Spin-off of brokered transportation services[edit]

In March 2022, XPO announced plans to spin off its brokered transportation services in North America from its asset-based less-than-truckload service. In the same announcement, XPO shared intentions to divest its European transportation business through either a sale or listing on a European stock exchange, and to divest its intermodal and drayage business through a sale. The spin-off is expected to complete in the fourth quarter of 2022.[30]

Operations[edit]

XPO's transportation portfolio includes less-than-truckload (LTL), freight brokerage, last mile, intermodal, drayage and global forwarding services. XPO's LTL unit ships freight on pallets using a hub-and-spoke distribution system.[31] It is the third-largest LTL provider in North America and a leading LTL provider in Western Europe, with 16,000 tractors and 39,000 trailers.[32][33][34] XPO's North American LTL network includes 290 cross-dock facilities and more than 75,000 next-day and two-day lanes.[1][35][36] In freight brokerage, XPO primarily connects independent road carriers with companies that need to ship materials, parts, or finished goods. XPO is the second-largest freight brokerage provider worldwide,[37] with approximately 38,000 independent carriers operating over one million trucks.[38][39]

XPO is the largest provider of last mile logistics for heavy goods in North America — arranging the home delivery of heavy goods that typically require assembly or installation, such as washing machines, refrigerators, exercise equipment and home entertainment systems.[34][40]

Sustainability[edit]

XPO publishes an annual sustainability report[41] and ESG scorecard to track ongoing initiatives, including LED lighting, optimizing transportation routes, alternative-fuel trucks and electric delivery vehicle pilots.

Total CO2e Emissions (Kt)
Dec 2017 Dec 2018 Dec 2019 Dec 2020
1,208[42] 1,243[43] 1,278[44] 1,230[41]

Technology[edit]

XPO employs IT professionals and data scientists who work on automation and intelligent machines, forecasting demand, predictive analytics, pricing algorithms, workforce planning, load and route optimization, customer service and its digital freight marketplace.[45][46][47] In its LTL network, XPO uses machine learning and predictive analytics to improve pricing algorithms and network productivity.[48][49]

In 2019, XPO was the first global logistics company to join the Massachusetts Institute of Technology (MIT) Industrial Liaison Program, a partnership organization that pairs MIT resources with corporations worldwide to solve global business challenges.[50][51][52]

Other technology initiatives include:

  • The proprietary XPO Connect digital freight marketplace and Drive XPO carrier mobile app,[53] which connect shippers with carriers and enable real-time market visibility;[54]
  • An expedited bid system for truck transportation that uses an automated, web-based auction portal to match loads to carriers, as well as an online bid platform for air charter and air freight shipments requiring expedited service;[55]
  • VR and AR applications under development for internal staff, clients, and household customers.[56]

Tour de France[edit]

Due to their European acquisitions, XPO Logistics has handled logistics for the annual Tour de France bicycle race since 1981.[57] In July 2019, XPO was awarded a contract extension through 2024 to be the official transport and logistics partner of the Tour de France.[57] XPO also manages logistics for other major events in France, including the French Soccer Cup, the Evian Golf Championship and the Paris Marathon.[58][59] In 2019, XPO Logistics released a mobile game app called XPO Moves the Tour to simulate how drivers and proprietary logistics technology support the Tour de France.[60][61]

See also[edit]

References[edit]

  1. ^ a b "XPO Logistics announces fourth quarter and full-year 2019 results". XPO Logistics. Retrieved February 1, 2020.
  2. ^ "US SEC: Form 10-K XPO Logistics, Inc". United States Securities and Exchange Commission.
  3. ^ "XPO Logistics Ranked Fourth Largest Freight Brokerage Firm and Top 50 Logistics Company". Reuters. November 13, 2013.
  4. ^ "Profile:XPO Logistics, Inc". Reuters. Archived from the original on October 10, 2010.
  5. ^ "Facts and Figures" (PDF). XPO Logistics. October 31, 2018. Retrieved November 1, 2018.
  6. ^ "XPO Logistics hires new CFO as it weighs asset sale". The Wall Street Journal. February 10, 2020.
  7. ^ "XPO Logistics Completes Acquisition of NLM". Market Watch. December 30, 2013.
  8. ^ Ossenbeck, Brian P. (March 10, 2017). XPO Logistics. J.P. Morgan Aviation, Transportation and Industrials Conference. J.P. Morgan.
  9. ^ "XPO Logistics Announces Public Filing of Form 10 Registration Statement for Planned Spin-Off of GXO Logistics". xpo.com. June 9, 2021. Retrieved August 2, 2021.
  10. ^ "XPO Logistics finalizes Con-way acquisition". American Shipper. Retrieved February 14, 2016.
  11. ^ "Bradley Jacobs: The maestro of mergers". Forbes India. Retrieved July 23, 2019.
  12. ^ Smith, Jennifer. "Bradley Jacobs Has Acquired More Than 500 Companies. Here's What He Has Learned". WSJ. Retrieved November 18, 2019.
  13. ^ "Jacobs has big plans for Express-1". Expeditersonline.com. September 8, 2011.
  14. ^ "Jacobs has big plans for Express-1 expediter". greenwichtime.com. February 7, 2012.
  15. ^ "XPO Logistics, Inc, Form 8-K, Current Report, Filing Date Jun 8, 2012". secdatabase.com. Retrieved May 6, 2018.
  16. ^ "US logistics group XPO buying France's Dentressangle". Business Insider. April 28, 2014.
  17. ^ "Norbert Dentressangle disappears from roads as XPO starts marketing push". SHD Logistics News. Retrieved July 12, 2018.
  18. ^ Chao, Brian Baskin And Loretta (September 9, 2015). "XPO Logistics to Acquire Trucker Con-way in $3 Billion Deal". Wall Street Journal. ISSN 0099-9660. Retrieved August 5, 2021.
  19. ^ Bookmark +, Deborah Lockridge •. "CFI Name Returns With TransForce Acquisition". www.truckinginfo.com. Retrieved August 5, 2021.
  20. ^ "Here are the 15 New Companies Joining the Fortune 500". Fortune. June 6, 2016. Retrieved June 7, 2016.
  21. ^ "XPO Logistics named 'fastest-growing company' in Fortune 500". July 12, 2016. Retrieved August 31, 2016.
  22. ^ "Fortune 500: XPO Logistics". Fortune. May 21, 2018. Retrieved May 27, 2018.
  23. ^ Sozzi, Brian (January 15, 2020). "XPO Logistics explores sale or spin-off of one or more of its businesses". Yahoo Finance.
  24. ^ Cornell, Joe (January 21, 2020). "XPO Logistics to explore breakup". Forbes.
  25. ^ Sharkey, Grace. "XPO Announces Logistics Spinoff GXO". Freightwaves. Retrieved March 19, 2021.
  26. ^ Bowman, Jeremy (August 17, 2021). "Why You Should Take a Closer Look at the New XPO Logistics". Motley Fool. Retrieved September 9, 2021.
  27. ^ Whiteman, Lou (August 2, 2021). "Why Shares of XPO Are Plunging Today". Motley Fool. Retrieved September 9, 2021.
  28. ^ "XPO Logistics Announces Second Quarter 2021 Results". July 28, 2021. Retrieved August 2, 2021.
  29. ^ Cassidy, William (September 3, 2021). "After 10 years, XPO still surprises". William Cassidy (JOC). Retrieved September 9, 2021.
  30. ^ "XPO Logistics Announces Plan to Create Two Standalone, Publicly Traded Industry Leaders in Less-Than-Truckload and Tech-Enabled Brokered Transportation". www.xpo.com. XPO Logistics. Retrieved March 11, 2022.
  31. ^ "Deutsche Bank turns bullish on transports for 2020". FreightWaves. September 24, 2019. Retrieved December 2, 2019.
  32. ^ "US logistics group XPO buying France's Dentressangle". Business Insider. April 28, 2014.
  33. ^ Picker, Leslie (April 28, 2015). "XPO Logistics Buying Norbert in $3.53 Billion European Deal". bloomberg.com. Retrieved June 1, 2015.
  34. ^ a b Brian P. Ossenbeck (July 11, 2016). North American Equity Research: XPO Logistics (Report). JP Morgan. p. 8.
  35. ^ Kilcarr, Sean (September 10, 2015). "XPO Logistics to buy Con-way for $3 billion". Fleet Owner.
  36. ^ Kulisch, Eric (September 20, 2015). "XPO goes long in LTL". American Shipper.
  37. ^ "XPO to Purchase Con-way". Transport Topics. Retrieved February 14, 2016.
  38. ^ "XPO Completes Con-way Purchase; Picks LTL Chief, Begins Cost Cuts". Transport Topics. Retrieved February 14, 2016.
  39. ^ FreightWaves (September 23, 2019). "Traditional Freight Brokers Investing Millions To Stay On Top". Benzinga. Retrieved December 2, 2019.
  40. ^ "XPO to roll out new last mile technology offering in November". Logisticsmgmt.com. Retrieved October 22, 2017.
  41. ^ a b "XPO Logistics's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on June 6, 2021. Alt URL
  42. ^ "XPO Logistics's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on June 6, 2021. Alt URL
  43. ^ "XPO Logistics's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on June 6, 2021. Alt URL
  44. ^ "XPO Logistics's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on June 6, 2021. Alt URL
  45. ^ DePillis, Lydia (July 15, 2019). "America's addiction to absurdly fast shipping has a hidden cost". CNN. Retrieved July 24, 2019.
  46. ^ Stinson, Jim (March 12, 2019). "XPO Installs Two Tech Platforms to Meet Freight Challenges". Transport Topics. Retrieved July 24, 2019.
  47. ^ Shah, Agam. "Government Urged to Boost R&D Spending". WSJ. Retrieved November 18, 2019.
  48. ^ Matthews, Kayla (September 25, 2019). "Six Advanced Technologies that Could Assist in LTL Shipping". Freight Waves. Retrieved December 2, 2019.
  49. ^ Cassidy, William and Hugh R. Morley (March 3, 2020). "XPO's Jacobs aims to 'revolutionize' LTL". Journal of Commerce. Retrieved September 9, 2021.
  50. ^ "XPO Logistics joins MIT's Industrial Liaison Program – DC Velocity". DCVelocity.com. Retrieved December 2, 2019.
  51. ^ "XPO enters into partnership with MIT's Industrial Liaison Program and adds new board member". Logisticsmgmt.com. Retrieved December 2, 2019.
  52. ^ "The Morning Download: New Iron Mountain CIO Comes With G Suite". Createsend.com. Retrieved December 2, 2019.
  53. ^ "XPO Connect has a chance to make a statement for incumbent logistics providers in the digital marketplace". FreightWaves. Retrieved August 11, 2018.
  54. ^ "XPO Logistics is expanding its digital platform to Europe". Business Insider. March 11, 2019.
  55. ^ "XPO Logistics identifies four top technology priorities". Supply Chain Quarterly. Retrieved October 19, 2017.
  56. ^ Cassidy, William B. (February 7, 2018). "XPO to boost tech spending, make acquisitions in 2018". Joc.com. Retrieved February 14, 2018.
  57. ^ a b "XPO Logistics to Move the Tour de France for Another Six Years". finance.yahoo.com. Greenwich, Connecticut. July 3, 2019. Retrieved August 4, 2021.
  58. ^ "Golf: XPO Logistics nominato partner ufficiale per i trasporti della Evian Championship". SPORTFAIR (in Italian). September 15, 2017. Retrieved October 22, 2017.
  59. ^ "XPO Logistics Keeps the Tour de France on the Road for the 37th Year". europe.xpo.com. XPO Logistics Europe. Retrieved July 22, 2019.
  60. ^ "XPO Logistics Mobile Game Invites Players to Move the Tour de France". europe.xpo.com. XPO Logistics Europe. Retrieved July 22, 2019.
  61. ^ "XPO Moves The Tour: The Game". App Store. Retrieved July 22, 2019.

External links[edit]