XPO Logistics

XPO Logistics, Inc.
Public
Traded as
Predecessor Express-1 Expedited Solutions
Headquarters Greenwich, Connecticut, United States
Number of locations
 1,505 (2018)
Key people
Services
Revenue Increase US$ 15.38 billion (2017)
Increase US$ 623.2 million (2017)
Increase US$ 360.2 million (2017)
Total assets Increase US$ 12.60 billion (2017)
Total equity Increase US$ 4.01 billion (2017)
Number of employees
 ~97,000 (2018)
Divisions
  • XPO Less-than-Truckload
  • XPO Global Forwarding
  • Intermodal
  • Freight Brokerage
  • Last Mile
  • Supply Chain
Website XPO.com
Footnotes / references
[1][2][3][4]

XPO Logistics, Inc. (NYSE: XPO) is a U.S. corporation and one of the world's ten largest providers of transportation and logistics services.[5] It was founded in 1989 as Express-1 Expedited Solutions, which specialized in moving time-sensitive freight. After Express-1 was purchased by Bradley Jacobs in 2011, it changed its name to XPO and began acquiring other companies in the transportation and logistics industries.

Today XPO operates in supply chain management; truckload, less-than-truckload and expedited shipping; freight brokerage; last-mile delivery; intermodal freight transport and drayage; and global freight forwarding. It has approximately 50,000 customers in 32 countries around the world, including 67 of the Fortune 100. XPO's corporate headquarters is located in Greenwich, Connecticut. Its European headquarters is in Lyon, France.[6]

History

XPO Logistics was founded in May 1989 by Michael Welch and Keith Avery as Express-1 Expedited Solutions.[7] In September 2011, American businessman Bradley Jacobs gained approximately 71 percent ownership in Express-1 with a $150 million investment through his firm, Jacobs Private Equity LLC.[8][9] He assumed the roles of chairman of the board and CEO, announced plans to move the company's headquarters from Michigan to Connecticut, and changed its name to XPO Logistics – a reference to Express-1's NYSE ticker symbol XPO, which had been in use since 2006.[10][11]

In March 2012, XPO made the first of 17 acquisitions in four years in the transportation and logistics sector (See § Acquisitions, below.), and opened a national operations center in Charlotte, N.C.[12] Three months later on June 14, the company listed its shares on the New York Stock Exchange.[13]

XPO joined the Fortune 500 in June 2016, and was named its the fastest-growing company the following month.[14][15] It is 186th on the list as of May 21, 2018.[16]

Acquisitions

XPO has acquired 17 companies between September 2011 and October 2015, with the goal of becoming a one-stop shop for supply chain services.[17] Some of the larger ones helped expand XPO’s role in different segments of the industry:

  • August 16, 2013: 3PD, Inc. This made XPO the largest provider of heavy goods home delivery (its last mile business) in North America.
  • December 28, 2013: National Logistics Management (a Landstar System business). This made XPO North America’s largest online manager of expedited shipments.[18]
  • March 31, 2014: Pacer International, Inc. Pacer was the third-largest intermodal provider in North America and the leading provider of these services between the U.S. and Mexico.[19]
  • September 2, 2014: New Breed Logistics. New Breed was a large U.S. provider of 3PL services for blue chip customers.[20][21]
  • June 8, 2015: Norbert Dentressangle. A French 3PL, this acquisition gave XPO the largest trucking fleet in Europe, and made it Europe's largest provider of e-commerce fulfillment.[22][23]
  • October 30, 2015: Con-way Inc. After purchasing Con-way, XPO became the second largest less-than-truckload transport provider in North America. Con-way also had operations in global contract logistics, managed transportation, truckload shipping, and freight brokerage.[24][25]

In June 2017, XPO announced plans to spend $6 to $8 billion on one or two new acquisitions,[26] more than the combined costs of Norbert Dentressangle and Con-way, XPO's two largest purchases to date.[27][28] Prospective companies are reportedly multinational, asset-light, and headquartered in North America or Western Europe.[29]

Operations

XPO Logistics handles the end-to-end management of goods for companies around the world. Its services include supply chain management; truckload, less-than-truckload and expedited shipping; freight brokerage; last-mile delivery; intermodal freight transport and drayage; and global freight forwarding. Many of these are consolidated under XPO Direct, a shared-space distribution model that "rents out" XPO's existing space to retailers, so they can offer two-day delivery to 95% of U.S. households.[30][31] XPO uses data analysis to predict demand and position goods within the XPO Direct network.[32]

XPO's operations are part of the SmartWay Transport Partnership, a program administered by the U.S. Environmental Protection Agency. Under the program, freight shippers, carriers and logistics companies voluntarily collaborate to improve fuel efficiency and reduce emissions.[33]

Expedited shipping

Before changing its name, XPO began as Express-1 Expedited Solutions, a company that specialized in transporting time-critical, high-value ground and air shipments.[7] XPO is now the largest manager of expedited shipments in North America.[34]

Freight brokerage

Freight brokerage involves connecting road carriers with companies that need to ship freight, whether it's raw material, parts or finished goods. XPO is the second-largest brokerage provider in the world,[35] with about 50,000 independent carriers who operate over one million trucks.[36] Brokerages are managed on XPO's Freight Optimizer platform, which ranks the carriers based on the amount and types of goods they move.[37]

Intermodal and drayage

XPO owns or leases 9,500 53-ft. intermodal containers and 5,000 chassis to transport them by road, making it the third-largest intermodal provider in North America.[38] It operates a drayage network of 2,200 independent owner-operators, with access to more than 25,000 additional trucks.[4][39] XPO's intermodal and drayage businesses have run on a custom platform called Rail Optimizer since 2015.

Last mile delivery

Last mile is the delivery and assembly of heavy or bulky goods that aren't handled by parcel carriers. XPO is the largest provider of last-mile deliveries in North America.[40] It facilitates over 13 million per year through a network of 5,000 contracted drivers and installers.[41]

About 77% of the U.S. population lives within 125 miles of an XPO last mile delivery center.[42][43] The company is increasing its U.S. footprint to 85 locations by the end of 2018, which would let it reach 90% of customers.[44] XPO is actively expanding services in Europe, with 750,000 last mile deliveries expected in 2018.[45]

Less-than-truckload transport

XPO is one of the world’s largest providers of less-than-truckload (LTL) transport: the shipment of pallets to different destinations using a hub-and-spoke distribution system. It is the second-largest LTL carrier in North America and the largest in Europe, with 16,000 tractors and 39,000 trailers.[22][23][40] XPO's network includes 457 cross-dock facilities and the most next-day and two-day shipping lanes in North America.[46][47]

Third-party logistics

XPO is the second-largest global provider of third-party contract logistics, or 3PL: the management of other companies' transportation and logistics needs over the long term.[18] It operates 810 warehouses with 183 million square feet of space for omnichannel order fulfillment; e-commerce warehousing and distribution; the handling of returned goods (reverse logistics); supply chain optimization; factory and aftermarket support; and managed transportation, including the transportation of hazardous or temperature-sensitive materials.[4][48] Its 3PL customers operate in retail, e-commerce, high tech,[49] aerospace, telecom,[50] food and beverage,[51] healthcare,[52] agriculture and infrastructure.[53]

Tour de France

XPO has handled logistics for the annual Tour de France bicycle race for 38 years. It transports 360 tons of official equipment over 270,000 kilometers during the event, including podiums, barriers and gates, furniture, audiovisual equipment, sponsor merchandise, and marking paint.[54] It also manages logistics for a Tour de France sister competition, the Tour de France à la voile yachting race.[55]

Technology

XPO Logistics spends $450 million a year on hardware and software development.[56] On the hardware side, the company is building robots and drones that handle inventory management with built-in RFID scanners and OCR cameras.[57][58]

XPO has built various software platforms to manage different operations. Its 3PL warehouses run a cloud-based, mobile-optimized manager called WMx, which consolidates common warehouse functions such as inventory, robot automation, order management, load assignment, GPS tracking, proof of delivery and invoicing.[59]

For its brokerage business, XPO's Freight Optimizer and Rail Optimizer use data mining to predict prices and position goods, both within warehouses and around North America as part of XPO Direct (see Operations above).[32][60] They also feed into XPO Connect, an online marketplace for different modes of freight transportation that works with Drive XPO, a mobile app for truck drivers.[61]

For its last mile business, XPO integrated support for Amazon Alexa, Google Assistant, and augmented reality into its Ship XPO app, which lets retailers and their customers track heavy-goods shipments.[62] Customers can ask for delivery updates from the voice assistants, and use AR visualization to preview furniture and appliances in their homes.[63][64]

XPO's expedite bid system uses an automated, web-based auction portal to match loads to carriers.[65]

Awards and recognition

Industry

Transport Topics listed XPO among the Top 25 Freight Brokerage Firms of 2012,[66] and the #1 logistics company in both 2017 and 2018.[67][68] Logistics Management named XPO to its list of the Top 50 Trucking Companies in 2016,[69] and Logistics Manager named it 3PL of the Year in 2017.[70] In Italy, Assologistica named XPO Logistics Company of the Year for 2017.[71]

In 2016, Forbes named XPO #17 on its list of the Most Innovative Growth Companies, and #263 on its list of America's Best Employers.[72] XPO was named the top performing U.S. company among Forbes' Global 2000 Growth Champions in 2017,[73] and #16 on the overall list in 2018.[74]

XPO was named fourth among transportation companies on Fortune's list of the World's Most Admired Companies of 2018.[75]

In May 2018, Gartner recognized XPO Logistics as a leader in its Magic Quadrant for global third-party logistics providers.[76]

Environment

In 2015, XPO earned the SmartWay Excellence Award for environmental improvement.[77] The company has been an Inbound Logistics G75 Supply Chain Partner since 2017.[78][79]

Workplace

XPO was named one of Italy's Best Places to Work by Panorama in 2017,[80] and one of Glassdoor's Best Places to Work for 2018 in the United Kingdom.[81]

See also

References

  1. ↑ "US SEC: Form 10-K XPO Logistics, Inc". United States Securities and Exchange Commission. Retrieved February 15, 2018.
  2. ↑ "XPO Logistics Ranked Fourth Largest Freight Brokerage Firm and Top 50 Logistics Company". Reuters. Nov 13, 2013.
  3. ↑ "Profile:XPO Logistics, Inc". reuters.com.
  4. 1 2 3 "Facts and Figures" (PDF). XPO Logistics. August 1, 2018. Retrieved August 8, 2018.
  5. ↑ Ossenbeck, Brian P. (10 March 2017). XPO Logistics. J.P. Morgan Aviation, Transportation and Industrials Conference. J.P. Morgan.
  6. ↑ "XPO Logistics finalizes Con-way acquisition". American Shipper. Retrieved February 14, 2016.
  7. 1 2 "Express-1 Expedited Solutions CEO Speaks About His Company". seekingalpha.com. May 21, 2007.
  8. ↑ "Jacobs has big plans for Express-1". expeditersonline.com. September 8, 2011.
  9. ↑ "Jacobs has big plans for Express-1 expediter". greenwichtime.com. February 7, 2012.
  10. ↑ "Profitable Segmentz to Change Name". Journal of Commerce. Mar 6, 2006.
  11. ↑ "XPO Logistics, Inc, Form S-3, Filing Date Sep 6, 2011". secdatabase.com. Retrieved May 6, 2018.
  12. ↑ "XPO Logistics to Open Operations Center Creating Over 200 Jobs". charlotechamber.com. February 28, 2012.
  13. ↑ "XPO Logistics, Inc, Form 8-K, Current Report, Filing Date Jun 8, 2012". secdatabase.com. Retrieved May 6, 2018.
  14. ↑ "Here Are The 15 New Companies Joining The Fortune 500". fortune.com. 2016-06-06. Retrieved 2016-06-07.
  15. ↑ "XPO Logistics named 'fastest-growing company' in Fortune 500". July 12, 2016. Retrieved August 31, 2016.
  16. ↑ "Fortune 500: XPO Logistics". Fortune Magazine. May 21, 2018. Retrieved May 27, 2018.
  17. ↑ "Brad Jacobs' grand design for engineering growth". JOC.com. October 23, 2015. Retrieved November 17, 2016.
  18. 1 2 "XPO Logistics Completes Acquisition of NLM". Market Watch. Dec 30, 2013.
  19. ↑ Morris, Betsy (6 January 2014). "XPO Logistics Agrees to buy Pacer". Wall Street Journal.
  20. ↑ McCracken, Jeffrey (Jul 30, 2014). "XPO Pulls Off 500 Purchases While Bypassing Wall Street". bloomberg.com.
  21. ↑ "VIDEO: The M&A King Wheeling and Dealing Without Bankers". bloomberg.com. Jul 30, 2014.
  22. 1 2 "US logistics group XPO buying France's Dentressangle". Business Insider. 28 April 2014.
  23. 1 2 Picker, Leslie (April 28, 2015). "XPO Logistics Buying Norbert in $3.53 Billion European Deal". bloomberg.com. Retrieved June 1, 2015.
  24. ↑ "XPO Logistics to Acquire Trucker Con-way in $3 Billion Deal". wsj.com. Retrieved February 14, 2016.
  25. ↑ "Buying Con-way, XPO shifts from 'asset light' to 'asset right'". joc.com. Retrieved February 14, 2016.
  26. ↑ Edgecliffe-Johnson, Andrew (2018-05-02). "XPO Logistics eyes up to $8bn in deals". Financial Times. Retrieved 2018-06-06.
  27. ↑ Smith, Jennifer (2017-08-02). "XPO Logistics May Spend Up to $8 Billion on Acquisitions". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-08-28.
  28. ↑ Solomon, Mark B. (2017-08-02). "XPO's Asian growth to be fueled by joint ventures, not mergers, Jacobs says". DC Velocity. Retrieved 2017-08-28.
  29. ↑ "For U.S. 3PLs, can the world be their oyster?". DC Velocity. Retrieved 2017-10-19.
  30. ↑ Duprey, Rich. "XPO Logistics Wants to Level the Retail Playing Field". The Motley Fool. Retrieved 2018-06-06.
  31. ↑ "We're facilitating growth at Amazon and other e-commerce giants: XPO Logistics CEO". Mad Money. Retrieved 2018-06-06.
  32. 1 2 "Profit, Revenue Grow at XPO as It Invests in Tech". Transport Topics. 2018-05-02. Retrieved 2018-06-06.
  33. ↑ "XPO Logistics Q3 revenue is up 173.3 percent". XPO Logistics. Jan 2014. Archived from the original on December 9, 2013.
  34. ↑ Cassidy, William B. (May 13, 2013). "Managing Growth, In the Slow Lane". Journal of Commerce: 40.
  35. ↑ "XPO to Purchase Con-way". Transport Topics. Retrieved February 14, 2016.
  36. ↑ "XPO Completes Con-way Purchase; Picks LTL Chief, Begins Cost Cuts". Transport Topics. Retrieved February 14, 2016.
  37. ↑ "XPO Logistics and the US Freight Brokerage Industry". The Transport Intelligence Blog. September 22, 2015. Retrieved November 15, 2016.
  38. ↑ "Transport Topics Top 100" (PDF). Transport Topics. 2015. Retrieved March 21, 2016.
  39. ↑ "XPO Investor Presentation February 2007". XPO Logistics. Retrieved March 21, 2017.
  40. 1 2 Brian P. Ossenbeck (11 July 2016). North American Equity Research: XPO Logistics (Report). JP Morgan. p. 8.
  41. ↑ "XPO to roll out new last mile technology offering in November". www.logisticsmgmt.com. Retrieved 2017-10-22.
  42. ↑ Berman, Jeff (2017-05-11). "XPO Logistics takes steps to expand last mile network in Chicago area". Logistics Management. Retrieved 2017-08-27.
  43. ↑ "XPO Logistics doubles last-mile footprint in Chicago". JOC.com. May 11, 2017.
  44. ↑ "XPO Logistics doubling last-mile footprint". www.joc.com. Retrieved 2017-10-22.
  45. ↑ "XPO Logistics expects 750,000 European home deliveries for 2018". Reuters. 2018-02-15. Retrieved 2018-03-07.
  46. ↑ Sean Kilcarr (Sep 10, 2015). "XPO Logistics to buy Con-way for $3 billion". Fleet Owner.
  47. ↑ Eric Kulisch (September 20, 2015). "XPO goes long in LTL". American Shipper.
  48. ↑ Tran, David (2017-08-01). "XPO Logistics awarded VWR International UK contract". SHD Logistics News. Retrieved 2017-08-27.
  49. ↑ "Promethean en XPO Logistics breiden contract uit • TTM.nl". TTM.nl (in Dutch). 2017-08-02. Retrieved 2017-10-22.
  50. ↑ "JLG places XPO Logistics in charge of aftermarket parts distribution, will close Ohio distribution center". Equipment World. Retrieved 2017-10-22.
  51. ↑ Pegden, Tom (2017-09-10). "Revealed: Nestlé 'planning vast new county warehouse'". leicestermercury. Retrieved 2017-10-22.
  52. ↑ "XPO wins contract with VWR International - Logistics Manager". Logistics Manager. 2017-07-27. Retrieved 2017-10-22.
  53. ↑ "XPO Logistics wins Highways England contract renewal". CILT(UK). Retrieved 2017-10-22.
  54. ↑ "XPO Moves the Tour". XPO Newsroom. Retrieved 2018-08-08.
  55. ↑ "Golf: XPO Logistics nominato partner ufficiale per i trasporti della Evian Championship". SPORTFAIR (in Italian). 2017-09-15. Retrieved 2017-10-22.
  56. ↑ Gara, Antoine. "Better Than Amazon? How Bradley Jacobs Turned A $63M Bet Into A $12 Billion Transportation Empire". Forbes. Retrieved 2018-07-15.
  57. ↑ "XPO and Mars collaborate to 'transform' supply chain". www.supplychaindigital.com. Retrieved 2018-03-07.
  58. ↑ "XPO Logistics identifies four top technology priorities". Supply Chain Quarterly. Retrieved 2017-10-19.
  59. ↑ Cassidy, William B. (2018-02-07). "XPO to boost tech spending, make acquisitions in 2018". www.joc.com. Retrieved 2018-02-14.
  60. ↑ Larkin, John G. (February 9, 2016). XPO Still in "Heads Down" Mode; Continues to Focus on Improving Current Business. Stifel Transportation & Logistics Conference. Key Biscayne, Florida: Stifel.
  61. ↑ "XPO Connect has a chance to make a statement for incumbent logistics providers in the digital marketplace". FreightWaves. Retrieved 2018-08-11.
  62. ↑ "XPO to offer interactive last-mile technology". American Shipper. Retrieved 2017-10-22.
  63. ↑ Johnson, Eric M. (2018-04-18). "'Hey Alexa, where's my delivery?' XPO Logistics unveils voice tracking". Reuters. Retrieved 2018-08-11.
  64. ↑ "XPO "augments" home delivery service". DC Velocity. 2018-08-11. Retrieved 2018-08-11.
  65. ↑ "XPO to Buy Web-Based Freight Auction Site From Landstar System for $87 Mln. in Cash". Transport Topics. December 16, 2013. Retrieved November 17, 2016.
  66. ↑ "Top 25 Freight Brokerage Firms" (PDF). ttnews.com. December 1, 2012. Archived from the original (PDF) on December 3, 2012. Retrieved December 18, 2012.
  67. ↑ "Logistics Market Continues to Evolve; XPO Jumps to No. 1 on Top 50 List". Transport Topics. April 3, 2017. }
  68. ↑ "2018 Top 50 Logistics Companies: XPO Retains Its Place at the Top". Transport Topics. April 9, 2018. }
  69. ↑ Schulz, John (2017-03-28). "Top 50 Trucking Companies of 2016: Reinventing the fundamentals". Logistics Management. Retrieved 2017-08-27.
  70. ↑ "2017 Supply Chain Award winners revealed". Logistics Manager. November 15, 2017. }
  71. ↑ "XPO Logistics, Empresa Logística del Año en Italia - Novologistica.com". Novologistica.com (in Spanish). 2017-10-25. Retrieved 2017-12-27.
  72. ↑ "America's Best Employers". Forbes. Retrieved July 23, 2016.
  73. ↑ "XPO Logistics Named Forbes Growth Champion as Revenue Rockets to $14.6 Billion". Transport Topics. 2017-10-11. Retrieved 2017-10-22.
  74. ↑ "XPO Logistics on the Forbes Growth Champions List". Forbes. Retrieved 2018-08-11.
  75. ↑ "World's Most Admired Companies for 2018". Forbes. Retrieved 2018-01-22.
  76. ↑ "XPO lands on Gartner logistics leadership list". Furniture Today. 2018-05-15. Retrieved 2018-06-06.
  77. ↑ "EPA Honors Freight Companies with SmartWay Awards". Transport Topics. October 13, 2015. Retrieved May 20, 2016.
  78. ↑ "75 Green Supply Chain Partners". Inbound Logistics. 2017-06-20. Retrieved 2017-08-27.
  79. ↑ "75 Green Supply Chain Partners". Inbound Logistics. 2018-06-13. Retrieved 2018-08-11.
  80. ↑ panorama (2017-11-15). "Ricerca Panorama-Statista: le aziende dove si lavora meglio in Italia - Panorama". Panorama (in Italian). Retrieved 2017-12-27.
  81. ↑ "XPO Logistics honoured with Glassdoor Employees' Choice Award | SHD Logistics News". SHD Logistics News. Retrieved 2017-12-27.
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