XPO Logistics

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XPO Logistics, Inc.
TypePublic
PredecessorExpress-1 Expedited Solutions
HeadquartersGreenwich, Connecticut, United States
Number of locations
1,540 (2019)
Key people
Bradley S. Jacobs
(Chairman and CEO)
Troy Cooper
(President)
David Wyshner
(CFO)
RevenueDecrease US$16.65 billion (2019)
Increase US$821 million (2019)
Decrease US$440 million (2019)
Total assetsIncrease US$14.13 billion (2019)
Number of employees
100,000 (2019)
WebsiteXPO.com
Footnotes / references
[1][2][3][4][5][6]

XPO Logistics (NYSEXPO) is an American transportation and contract logistics company that manages supply chains for 50,000 customers worldwide, including 69 of the Fortune 100.[7][8] It operates in 30 countries, with approximately 100,000 employees. XPO Logistics, Inc. was the 7th best-performing stock of the last decade on the Fortune 500, with share prices rising more than 1,000% from the time its CEO, Bradley Jacobs, took control.[9][10] XPO's corporate headquarters are located in Greenwich, Connecticut. Its regional headquarters for the European markets are located in Lyon, France.[11]

History[edit]

In September 2011, American businessman Bradley Jacobs[12][13] 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.[14][15] 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.[16] In June 2016, XPO Logistics was included in the Fortune 500 list of the largest U.S. corporations based on revenue.[17][18] By May 2019, XPO was ranked 180th on the Fortune 500 list.[19]

Spin-off of contract logistics[edit]

In December 2020, XPO announced an intent to spin off its global contract logistics business into a separate company. The new pure-play logistics entity will be the world’s second largest contract logistics operation.[20] The transaction is expected to be completed in the second half of 2021. [21]

Operations[edit]

XPO Logistics operates in two segments: transportation and contract logistics.[22]

Transportation[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.[23] 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.[24][25][26] Its North American LTL network includes 290 cross-dock facilities and more than 75,000 next-day and two-day lanes.[1][27][28] In freight brokerage, XPO connects independent road carriers with companies that need to ship materials, parts, or finished goods. XPO is the second-largest freight brokerage provider worldwide[29] with approximately 38,000 independent carriers operating over one million trucks.[30][31]

XPO is the largest provider of last mile logistics for heavy goods — arranging the home delivery of heavy goods that typically require assembly or installation, like washing machines, refrigerators, exercise equipment and home entertainment systems — in North America.[26][32]

Contract logistics[edit]

XPO operates approximately 800 warehouses with 200 million square feet of space, making it the second largest third-party contract logistics provider globally.[33] 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][34] Its contract logistics customers operate in retail, e-commerce, technology,[35] aerospace, telecom,[36] food and beverage,[37] healthcare,[38] agriculture and infrastructure.[39]

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.[40]

Technology[edit]

XPO spends $500–$550 million a year on software development, automation and technological hardware.[41][42] XPO 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.[43][44] XPO has implemented a variety of advanced robotics solutions.[buzzword][45] In October 2018, XPO began executing its plan to deploy 5,000 goods-to-person robots and collaborative robots ("cobots") to improve fulfillment time, increase productivity and manage peak holiday season volume in warehouses throughout North America and Europe.[46][47][48][49] In its LTL network, XPO Logistics uses machine learning and predictive analytics to improve pricing algorithms and network productivity.[50]

In October 2019, XPO Logistics 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.[51][52][53]

In 2020, XPO Logistics and Nestlé opened a joint-venture "warehouse of the future" in Leicestershire, U.K. The distribution center serves as a “testbed” for new technologies for the logistics space.[54]

Other technology initiatives include:

  • The proprietary XPO Connect digital freight marketplace and Drive XPO carrier mobile app,[55] which connect shippers with carriers, and enables real-time market visibility;[56]
  • A proprietary warehouse management platform that integrates advanced automation and consolidates common warehouse functions in one control center that evolves through machine learning;[57][58]
  • 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;[58]
  • Consumerization of the last mile experience, including smart-speaker tracking capabilities with voice-activated Amazon Alexa, Google Assistant, and on-screen Google Search;[59][60]
  • XPO is building VR and AR applications for internal staff, clients, and household customers.[61]

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.[62] XPO also manages logistics for other major events in France, including the French Soccer Cup, the Evian Golf Championship and the Paris Marathon.[63][64] 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.[65][66]

See also[edit]

References[edit]

  1. ^ a b "XPO Logistics announces fourth quarter and full-year 2019 results". XPO Logistics. Retrieved 1 February 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. Nov 13, 2013.
  4. ^ "Profile:XPO Logistics, Inc". Reuters.
  5. ^ a b "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. Dec 30, 2013.
  8. ^ Ossenbeck, Brian P. (10 March 2017). XPO Logistics. J.P. Morgan Aviation, Transportation and Industrials Conference. J.P. Morgan.
  9. ^ Sozzi, Brian (Jan 15, 2020). "XPO Logistics explores sale or spin-off of one or more of its businesses". Yahoo Finance.
  10. ^ Cornell, Joe (Jan 21, 2020). "XPO Logistics to explore breakup". Forbes.
  11. ^ "XPO Logistics finalizes Con-way acquisition". American Shipper. Retrieved February 14, 2016.
  12. ^ "Bradley Jacobs: The maestro of mergers". Forbes India. Retrieved 2019-07-23.
  13. ^ Smith, Jennifer. "Bradley Jacobs Has Acquired More Than 500 Companies. Here's What He Has Learned". WSJ. Retrieved 2019-11-18.
  14. ^ "Jacobs has big plans for Express-1". expeditersonline.com. September 8, 2011.
  15. ^ "Jacobs has big plans for Express-1 expediter". greenwichtime.com. February 7, 2012.
  16. ^ "XPO Logistics, Inc, Form 8-K, Current Report, Filing Date Jun 8, 2012". secdatabase.com. Retrieved May 6, 2018.
  17. ^ "Here Are The 15 New Companies Joining The Fortune 500". fortune.com. 2016-06-06. Retrieved 2016-06-07.
  18. ^ "XPO Logistics named 'fastest-growing company' in Fortune 500". July 12, 2016. Retrieved August 31, 2016.
  19. ^ "Fortune 500: XPO Logistics". Fortune Magazine. May 21, 2018. Retrieved May 27, 2018.
  20. ^ "XPO to Split Logistics, Trucking Into Separate Companies". Bloomberg.com. 2020-12-02. Retrieved 2020-12-03.
  21. ^ Smith, Jennifer. "XPO Logistics to Split Company in Two, Spin Off Contract Logistics Business". Wall Street Journal. Retrieved 2 December 2020.
  22. ^ Gara, Antoine (11 May 2018). "Bradley Jacobs: The maestro of mergers". Forbes. Retrieved 24 July 2019.
  23. ^ "Deutsche Bank turns bullish on transports for 2020". FreightWaves. 2019-09-24. Retrieved 2019-12-02.
  24. ^ "US logistics group XPO buying France's Dentressangle". Business Insider. 28 April 2014.
  25. ^ Picker, Leslie (April 28, 2015). "XPO Logistics Buying Norbert in $3.53 Billion European Deal". bloomberg.com. Retrieved June 1, 2015.
  26. ^ a b Brian P. Ossenbeck (11 July 2016). North American Equity Research: XPO Logistics (Report). JP Morgan. p. 8.
  27. ^ Sean Kilcarr (Sep 10, 2015). "XPO Logistics to buy Con-way for $3 billion". Fleet Owner.
  28. ^ Eric Kulisch (September 20, 2015). "XPO goes long in LTL". American Shipper.
  29. ^ "XPO to Purchase Con-way". Transport Topics. Retrieved February 14, 2016.
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  31. ^ FreightWaves (2019-09-23). "Traditional Freight Brokers Investing Millions To Stay On Top". Benzinga. Retrieved 2019-12-02.
  32. ^ "XPO to roll out new last mile technology offering in November". www.logisticsmgmt.com. Retrieved 2017-10-22.
  33. ^ "XPO Investor Presentation February 2020".|
  34. ^ Tran, David (2017-08-01). "XPO Logistics awarded VWR International UK contract". SHD Logistics News. Retrieved 2017-08-27.
  35. ^ "Promethean en XPO Logistics breiden contract uit • TTM.nl". TTM.nl (in Dutch). 2017-08-02. Retrieved 2017-10-22.
  36. ^ "JLG places XPO Logistics in charge of aftermarket parts distribution, will close Ohio distribution center". Equipment World. Retrieved 2017-10-22.
  37. ^ Pegden, Tom (2017-09-10). "Revealed: Nestlé 'planning vast new county warehouse'". leicestermercury. Retrieved 2017-10-22.
  38. ^ "XPO wins contract with VWR International - Logistics Manager". Logistics Manager. 2017-07-27. Retrieved 2017-10-22.
  39. ^ "XPO Logistics wins Highways England contract renewal". CILT(UK). Retrieved 2017-10-22.
  40. ^ Ames, Ben (24 April 2018). "XPO launches shared-space model for retail distribution". DC Velocity. Retrieved 24 July 2019.
  41. ^ Smith, Jennifer. "C.H. Robinson Worldwide to Double Spending on Freight Technology". WSJ. Retrieved 2019-11-18.
  42. ^ Smith, Jennifer. "Deutsche Post DHL Targets $2.2 Billion in Tech Upgrades". WSJ. Retrieved 2019-11-18.
  43. ^ DePillis, Lydia (15 July 2019). "America's addiction to absurdly fast shipping has a hidden cost". CNN. Retrieved 24 July 2019.
  44. ^ Stinson, Jim (12 March 2019). "XPO Installs Two Tech Platforms to Meet Freight Challenges". Transport Topics. Retrieved 24 July 2019.
  45. ^ Shah, Agam. "Government Urged to Boost R&D Spending". WSJ. Retrieved 2019-11-18.
  46. ^ Smith, Jennifer. "'Tis the Season for Surge Robots as Holiday Hiring Finds Automation". WSJ. Retrieved 2019-11-18.
  47. ^ "XPO to deploy 5,000 GreyOrange robots for e-commerce fulfillment – DC Velocity". www.dcvelocity.com. Retrieved 2019-11-18.
  48. ^ "Collaborative robots' safety stalls enterprise implementation". SearchEnterpriseAI. Retrieved 2019-12-02.
  49. ^ "How XPO Logistics Uses Robots to Meet E-Commerce Demand". Robotics Business Review. 2019-10-17. Retrieved 2019-12-02.
  50. ^ Matthews, Kayla (September 25, 2019). "Six advanced technologies that could assist in LTL shipping". Freight Waves. Retrieved December 2, 2019.
  51. ^ "XPO Logistics joins MIT's Industrial Liaison Program – DC Velocity". www.dcvelocity.com. Retrieved 2019-12-02.
  52. ^ "XPO enters into partnership with MIT's Industrial Liaison Program and adds new board member". www.logisticsmgmt.com. Retrieved 2019-12-02.
  53. ^ "The Morning Download: New Iron Mountain CIO Comes With G Suite". createsend.com. Retrieved 2019-12-02.
  54. ^ Ashe, Ari (27 June 2017). "XPO Plans 'Testing Ground' for the Future of Logistics". Transport Topics. Retrieved 24 July 2019.
  55. ^ "XPO Connect has a chance to make a statement for incumbent logistics providers in the digital marketplace". FreightWaves. Retrieved 2018-08-11.
  56. ^ "XPO Logistics is expanding its digital platform to Europe". Business Insider. 11 March 2019.
  57. ^ "XPO and Mars collaborate to 'transform' supply chain". www.supplychaindigital.com. Retrieved 2018-03-07.
  58. ^ a b "XPO Logistics identifies four top technology priorities". Supply Chain Quarterly. Retrieved 2017-10-19.
  59. ^ Smith, Jennifer (2018-10-03). "From Reindeer to Robots, Automation Set to Deliver This Holiday Season". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-10-20.
  60. ^ "XPO Logistics Will Add 5,000 Smart Robots to Help Speed Up Deliveries | Digital Trends". Digital Trends. 2018-10-05. Retrieved 2018-10-20.
  61. ^ Cassidy, William B. (2018-02-07). "XPO to boost tech spending, make acquisitions in 2018". www.joc.com. Retrieved 2018-02-14.
  62. ^ "XPO Logistics to Move the Tour de France for Another Six Years". finance.yahoo.com. Retrieved 2019-07-22.
  63. ^ "Golf: XPO Logistics nominato partner ufficiale per i trasporti della Evian Championship". SPORTFAIR (in Italian). 2017-09-15. Retrieved 2017-10-22.
  64. ^ "XPO Logistics Keeps the Tour de France on the Road for the 37th Year | XPO Logistics Europe". europe.xpo.com. Retrieved 2019-07-22.
  65. ^ "XPO Logistics Mobile Game Invites Players to Move the Tour de France | XPO Logistics Europe". europe.xpo.com. Retrieved 2019-07-22.
  66. ^ "XPO Moves The Tour: The Game". App Store. Retrieved 2019-07-22.

External links[edit]