XPO Logistics

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XPO Logistics, Inc.
Public
Traded as
ISINUS9837931008 Edit this on Wikidata
PredecessorExpress-1 Expedited Solutions
Founded1989 Edit this on Wikidata
HeadquartersGreenwich, Connecticut, United States
Number of locations
1,540 (2019)
Key people
RevenueIncrease US$ 17.28 billion (2018)
Increase US$ 704 million (2018)
Increase US$ 444 million (2018)
Total assetsDecrease US$ 12.27 billion (2018)
Total equityDecrease US$ 3.97 billion (2018)
Number of employees
100,000 (2019)
WebsiteXPO.com
Footnotes / references
[1][2][3][4][5]

XPO Logistics, Inc. (NYSEXPO) is one of the 10 largest providers of transportation and logistics services in the world.[6] It operates in 30 countries, with approximately 100,000 employees and over 50,000 customers, including 69 of the Fortune 100.[7] XPO's corporate headquarters are located in Greenwich, Connecticut. Its European headquarters are located in Lyon, France.[8]

History[edit]

XPO Logistics was founded in May 1989 as Express-1 Expedited Solutions by Michael Welch and Keith Avery.[9] In September 2011, it was purchased by American businessman Bradley Jacobs,[10] who became its chairman and CEO. The company changed its name to XPO – a reference to Express-1's AMEX ticker symbol “XPO”, which had been in use since 2006 – and began acquiring other companies in the transportation and logistics sector.[11][12]

In March 2012, XPO Logistics 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.[13]

In June 2016, XPO Logistics was included in the Fortune 500 list of the largest U.S. corporations based on revenue and was identified by Fortune as the list’s fastest-growing company the following month.[14][15] It was ranked 180th on the Fortune 500 list in May 2019.[16]

Acquisitions[edit]

XPO Logistics acquired 17 companies between March 2012 and October 2015, with the goal of providing a comprehensive range of transportation and logistics services to customers in a variety of industries, including retail/e-commerce, technology, and aerospace.[17] Five of the acquired companies were recognized as market leaders, with primary operating areas in either North America or Western Europe: 3PD, Inc., last mile logistics for heavy goods (August 2013, North America); Pacer International, Inc., intermodal transportation (March 2014, North America); New Breed Logistics, contract logistics (September 2014, North America); Norbert Dentressangle, contract logistics and truck transportation (June 2015, Europe); and Con-way Inc., less-than-truckload transportation (October 2015, North America).

Operations[edit]

XPO Logistics manages the end-to-end supply chain movement of goods for companies with multinational, national, multiregional and local markets. It operates in two segments: transportation and contract logistics.[18]

Transportation[edit]

Freight brokerage[edit]

XPO connects independent road carriers with companies that need to ship raw materials, parts or finished goods. XPO Logistics is the second largest freight brokerage provider globally,[19] with approximately 38,000 independent carriers operating a total of over one million trucks.[20]

Intermodal and drayage[edit]

XPO combines railroad and truck (drayage) transportation, and owns or leases 9,500 53-ft. intermodal containers and 5,000 chassis, making it the third largest intermodal provider in North America.[21] Additionally, it operates a drayage network of 2,400 independent owner-operators, and has access to more than 25,000 additional drayage trucks.[5][22]

Last mile[edit]

XPO arranges the home delivery of heavy goods that typically require assembly or installation, like washing machines, refrigerators, exercise equipment and home entertainment systems. XPO Logistics facilitates approximately 14 million last mile deliveries per year through a network of 5,000 independent drivers and technicians, making it the largest provider of heavy goods last mile logistics in North America.[23][24] About 90% of the U.S. population lives within 125 miles of an XPO last mile delivery hub.[25]

The company does have numerous Better Business Bureau violations for refusing to deliver as contracted, not having the equipment to off-load heavy / oversized loads. The company has a long history of also not showing-up when scheduled

Less-than-truckload[edit]

XPO’s LTL unit ships freight on pallets using a hub-and-spoke distribution system. XPO Logistics is the third largest LTL provider in North America and a leading LTL provider in Western Europe, using 16,000 tractors and 39,000 trailers.[26][27][23] Its North American network includes 290 cross-dock facilities and more than 75,000 next-day and two-day lanes.[1][28][29]

Global forwarding[edit]

XPO transports freight between cities, countries and continents. Cross-border shipments travel by ground, air or ocean.

Contract logistics[edit]

XPO Logistics operates in approximately 805 warehouses with 194 million square feet of space, making it the second largest third-party contract logistics provider globally.[1] Its services include: e-commerce warehousing and distribution; omnichannel order fulfillment; the management of returned goods (reverse logistics); predictive analytics and supply chain optimization; and cold chain.[5][30] Its contract logistics customers operate in retail, e-commerce, high tech,[31] aerospace, telecom,[32] food and beverage,[33] healthcare,[34] agriculture and infrastructure.[35]

XPO Direct is a shared-space distribution network for omnichannel retail and e-commerce customers. XPO Direct enables customers to share or rent parts of distribution centers to store their products. XPO warehouses and last mile hubs serve as stockholding sites and cross-docks utilized by multiple customers at the same time. Algorithms analyze customer data to identify patterns in consumer behavior and seasonality.[36]

Technology[edit]

XPO spends $500–$550 million a year on hardware, software development and advanced automation. It employs 1,800 IT professionals, including 100 data scientists, working on automation and intelligent machines, forecasting demand, predictive analytics, pricing algorithms, workforce planning, load and route optimization, customer service and its digital freight marketplace.[37][38]

In June 2018, XPO Logistics and Nestlé announced plans to build a "warehouse of the future" in Leicestershire, U.K. The distribution center, which is expected to be completed in 2020, will serve as a “testbed” for new technologies for the logistics space.[39]

In October 2018, XPO Logistics began deploying 5,000 collaborative warehouse robots (co-bots) to improve fulfilment time and cut costs throughout its logistics sites in North America and Europe.[40]

Other recent innovations include:

  • The proprietary XPO Connect digital freight marketplace and Drive XPO carrier mobile app,[41] which connect shippers with carriers, and enables real-time market visibility;[42]
  • Inventory management drones in XPO warehouses that document stock counts with built-in RFID scanners and OCR cameras;[43][44]
  • A proprietary warehouse management platform that integrates advanced automation and consolidates common warehouse functions in one control center that evolves through machine learning;[45]
  • 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;[46]
  • XPO is building VR and AR applications for internal staff, clients, and household customers. In June 2018, XPO launched an augmented reality application which allows household customers to place purchased items in their homes using a mobile app.[49]

Tour de France[edit]

In July 2019, XPO was awarded a contract extension through 2024 to be the official transport and logistics partner of the Tour de France. XPO Logistics has handled logistics for the annual Tour de France bicycle race since 1981.[50] XPO also manages logistics for other major events in France, including the French Soccer Cup, the Evian Golf Championship and the Paris Marathon.[51][52] XPO Logistics released a mobile game app in 2019 called "XPO Moves the Tour" to show how its drivers and proprietary logistics technology support the Tour de France.[53][54]

Awards and recognition[edit]

XPO Logistics was ranked as the #1 transportation company on Fortune's list of the World's Most Admired Companies for 2019,[55][56] and #19 on the Fortune Future 50.[57]

General Motors named XPO as GM Supplier of the Year in 2019 for managing GM's North American aftermarket parts distribution network.[58]

XPO Logistics was named a Ford Excellence Award winner in June 2019. [59]

FreightWaves named XPO Logistics to the Freight.Tech 100[60] and Freight.Tech 25 in 2018.[61]

Transport Topics listed XPO Logistics among the Top 25 Freight Brokerage Firms of 2012,[62] and as the #1 logistics company in 2017 and 2018.[63][64]

XPO Logistics was named to the Logistics Management list of Top 50 Trucking Companies in 2016;[65] the Logistics Manager 3PL of the Year in 2017;[66] the Assologistica Logistics Company of the Year in 2017 and 2018 (Italy);[67] and the Transplace LTL Carrier of the Year in 2018.[68]

XPO received the 2017 Boeing Performance Excellence Award for its supply chain management services.[69]

Forbes named XPO Logistics the top-performing U.S. company on the Forbes' Global 2000 Growth Champions list in 2017,[70] 17th on its list of the Most Innovative Growth Companies, and 263rd on its list of America's Best Employers in 2016.[71]

Sustainability[edit]

XPO Logistics earned the SmartWay Excellence Award for environmental improvement in 2015;[72] was named an Inbound Logistics Top 75 Green Supply Chain Partner for 2016, 2017 and 2018.[73][74][75]

The French Ministry of the Environment and the French Environment and Energy Agency awarded XPO Logistics the label “Objectif CO2” for outstanding environmental performance of transport operations in 2016.

XPO released its inaugural annual report on the company's sustainability initiatives in North America and Europe in April 2019.[76]

Workplace[edit]

XPO Logistics was named one of Italy's Best Places to Work by Panorama in 2017,[77] and one of Glassdoor's Best Places to Work in the United Kingdom in 2018 and 2019.[78][79] Glassdoor ranked XPO #3 on its list of Best Places to Work in the UK for 2019.[80] In March 2019, Forbes España named XPO one of the 50 best places to work in Spain.[81]

Between October 2018 and February 2019, The New York Times published an investigative series on pregnancy discrimination across corporate America. In October 2018, they reported on allegations of pregnant worker discrimination that led to at least four miscarriages in early 2014 at a warehouse facility in Memphis, Tennessee. XPO Logistics acquired the facility in September 2014, after all but one of the miscarriages occurred.[82]

The workers stated that their miscarriages were caused by their supervisors’ refusal to transfer them to lighter duties, despite having provided doctors’ notes recommending less taxing workloads. XPO said its executives found no record of such incidents in the due diligence performed before acquiring the facility, and that there had “been no reports of such incidents at the warehouse in the four years after XPO took control of it”.[83]

Tina Tchen, a lawyer spearheading the Time’s Up movement and former chief of staff to Michelle Obama, conducted an independent investigation of XPO’s workplace culture “as it relates to gender equity”.[84] Before Tchen’s investigation began, XPO committed to implement her recommendations.[85] Following her investigation, Tchen said: “I am pleased that the company responded immediately and, even before our investigation was completed, adopted a new Pregnancy Care Policy announced in December 2018 that far exceeds any federal, state or local requirements, and is one of the most progressive policies in place around the country”.[86]

In December 2018, XPO Logistics initiated a pregnancy care policy for new and expectant parents. The policy change provided up to four weeks of prenatal paid leave, six weeks of postpartum paid leave to primary caregivers enrolled in XPO benefits, two weeks of postpartum paid leave to secondary caregivers and up to 12 additional weeks of unpaid leave. XPO also partnered with Maven Clinic, a virtual network of healthcare practitioners, to provide new parents and expectant mothers additional support services.[87][88]

See also[edit]

References[edit]

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External links[edit]