XPO Logistics


XPO Logistics is an American multinational transportation and contract logistics company that manages supply chains for 50,000 customers, including 69 of the Fortune 100. It operates in 30 countries, with approximately 100,000 employees. XPO Logistics, Inc. is 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. XPO's corporate headquarters are located in Greenwich, Connecticut. Its European headquarters are located in Lyon, France.

History

In September 2011, American businessman Bradley Jacobs 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. 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. In June 2016, XPO Logistics was included in the Fortune 500 list of the largest U.S. corporations based on revenue. By May 2019, XPO was ranked 180th on the Fortune 500 list.

Acquisitions

XPO Logistics acquired 17 companies between March 2012 and October 2015, serving a variety of sectors such as retail/e-commerce, technology, and aerospace. 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 ; Pacer International, Inc., intermodal transportation ; New Breed Logistics, contract logistics ; Norbert Dentressangle, contract logistics and transportation ; and Con-way Inc., less-than-truckload transportation.

Operations

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

Transportation

Freight brokerage

XPO connects independent road carriers with companies that need to ship materials, parts, or finished goods, and it is the second-largest freight brokerage provider worldwide with approximately 38,000 independent carriers operating over one million trucks.

Intermodal and drayage

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

Last mile

XPO arranges the home delivery of heavy goods that typically require assembly or installation, like washing machines, refrigerators, exercise equipment and home entertainment systems. The company facilitates about 10 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. About 90% of the U.S. population lives within 125 miles of an XPO last mile delivery hub.

Less-than-truckload

XPO's LTL unit ships freight on pallets using a hub-and-spoke distribution system. 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. Its North American network includes 290 cross-dock facilities and more than 75,000 next-day and two-day lanes.

Global forwarding

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

Contract logistics

XPO operates approximately 800 warehouses with 200 million square feet of space, making it the second largest third-party contract logistics provider globally. Its services include: e-commerce warehousing and distribution; omnichannel order fulfillment; the management of returned goods ; predictive analytics and supply chain optimization; and cold chain. Its contract logistics customers operate in retail, e-commerce, technology, aerospace, telecom, food and beverage, healthcare, agriculture and infrastructure.
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.

Technology

XPO is a tech leader in the transportation and logistics industry, spending $500–$550 million a year on software development, automation and technological hardware. 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. XPO has implemented a variety of advanced robotics solutions. In October 2018, XPO began executing its plan to deploy 5,000 goods-to-person robots and collaborative robots to improve fulfillment time, increase productivity and manage peak holiday season volume in warehouses throughout North America and Europe. In its LTL network, XPO Logistics uses machine learning and predictive analytics to improve pricing algorithms and network productivity.
In October 2019, XPO Logistics was the first global logistics company to join the Massachusetts Institute of Technology Industrial Liaison Program, a partnership organization that pairs MIT resources with corporations worldwide to solve global business challenges.
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.
Other innovations include:
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. XPO also manages logistics for other major events in France, including the French Soccer Cup, the Evian Golf Championship and the Paris Marathon. 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.

Awards and recognition

XPO Logistics has received the following awards.
In 2019, XPO was named an Inbound Logistics Green 75 Supply Chain Partner for the fourth consecutive year, based on: measurable green results, innovation in sustainability, continuous improvement and industry recognition.
In 2019, XPO released its first annual report on the company's sustainability initiatives in North America and Europe.
In Portugal and Morocco, XPO uses mega-trucks, which carry a maximum load of 60 tons, compared with the standard 40 tons. The larger capacity allows mega-trucks to reduce road miles and cut CO2 emissions by as much as 20% for the same freight volume.
XPO’s European fleet includes 170 natural gas tractors in France and 20 liquified natural gas and compressed natural gas vehicles in the UK, Spain and Portugal. These vehicles reduce fine-particle emissions and generate up to 70% fewer NO2 emissions.
Since April 2019, all of the electricity used by XPO offices and distribution centers in Spain is 100% renewable.
In 2018, XPO’s global trailer manufacturing team refurbished 1,289 trailer units. New trailers are constructed with 86% reused or recycled material. With a refurbished trailer, 94% of the material is reused or recycled.
In 2018, XPO invested approximately $90 million to purchase 500 new Freightliner Cascadia tractors, 270 Navistar International less-than-truckload tractors and 19 Freightliner M2 straight trucks, all of which meet global greenhouse gas regulations.
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 Logistics earned the SmartWay Excellence Award for environmental improvement in 2015;

Community

In January 2020, XPO Logistics was recognized by the Human Rights Campaign Foundation for taking steps to “ensure equality for lesbian, gay, bisexual, transgender and queer workers and their families.” XPO received a rating of 85 out of 100 on the Corporate Equality Index for these efforts.
In December 2019, 8,700 XPO employees delivered more than seven tons of food to 35 food banks across the UK to help families in need. The donation was the equivalent to providing 9,500 meals for vulnerable people across the UK.
In November 2019, The Down Syndrome Association honored XPO with a ‘Best Employer Practice’ award.
In October 2019, XPO Logistics partnered with Susan G. Komen for the Cure, the nonprofit breast cancer organization, in a campaign to raise awareness about the disease. XPO now carries Komen's iconic pink ribbon logo on more than 600 of its less-than-truckload trucks.
In September 2019, XPO Logistics moved more than 175 truckloads of goods, including water, plywood and generators, to aid Florida’s preparations for Hurricane Dorian.
In August 2019, XPO partnered with Operation Backpack, which provides school supplies for thousands of children in need across New York City.
In July 2019, XPO Logistics sent 33 drivers to the American Trucking Association’s National Truck Driving Championship in Pittsburgh, Pennsylvania.
In March 2019, XPO Logistics partnered with and invested in Girls With Impact, an online entrepreneurship program for teen girls.
In January 2019, XPO Logistics partnered with Feeding America to help deliver supplies to 60,000 soup kitchens and pantries nationwide.
In January 2019, XPO Logistics donated 4.5 tons of food to local food banks in Spain.
In November 2018, XPO Logistics sponsored an event to combat homelessness by raising awareness and money for a youth homelessness charity.