SCLM 429

Lecturer: Mr. Kha Kieu

XPO Logistics
[Document subtitle]

Team members:

Trnh Th Mai 1232300289

inh Th Thu Hin 1232300022

Nguyn Th Kim Nhung 1232300317

Trn Trn Tiu My 1232300372

 I-

II- Contents
III- I-...................................................................................... Industry Background
.................................................................................................................... 0
IV-II- Company overview.......................................................................................... 0
V- 1. Company summary......................................................................................... 0
VI-2. Company history............................................................................................ 0
VII- 3............................................................................................ Mission statement
.................................................................................................................... 2
VIII- 4.....................................................................................Technology and Service
.................................................................................................................... 2
IX-5. XPO focused Industries....................................................................................3
X- 6. Management team........................................................................................... 4
XI-7. Market share Market share.............................................................................. 4
XII- 8.......................................................................................................... Awards
.................................................................................................................... 4
XIII- III-............................................................................... XPOs core competencies
.................................................................................................................... 5
XIV- 1...................................................................................... In terms of technology
.................................................................................................................... 5
XV- 2..........................................................................In terms of Freight Forwarding
.................................................................................................................... 5
XVI- 3..................................................................In terms of Expedited Transportation
.................................................................................................................... 6
XVII- 4............................................................................In terms of Freight Brokerage
.................................................................................................................... 6
XVIII- IV-.................................................................................................... Strategies
.................................................................................................................... 7
XIX- 1.......................................................................................... Strategy for growth
.................................................................................................................... 7
XX- 2....................................................................Strategic solutions for Supply Chain
.................................................................................................................... 8
XXI-
XXII- Industry Background

3PLs is a term, which is used to describe independent companies those are

responsible for providing single or multiple logistics service to purchasing companies.

According to Papadopoulou (n,d.). although the 3PLs companies do not hold the

ownership of the products for distribution, they are legally bound and responsible to meet

the demands of logistics activities of the purchasing companies. This collaboration in the

long-term is beneficial for both parties. SELECTUSA (n,d.) reported that in 2014, the

total amount of money that the United State spent on logistics and transportation industry

was totally $ 1.45 trillion, which contributed to 8.3 percent of annual gross domestic

product (GDP). Obviously, it was a huge amount of money.

XXIII- Company overview

1. Company summary

XPO logistics was founded in May 1989 by Michael Welch and Avery. This

company operates at 1,440 locations across in 33 countries, with two main segments:

logistics and transportation. There are approximately 87,000 employees who work hardly

to serve over 50,000 customers and every major industry, including e-commerce,

manufacturing, retail, aerospace, chemical, healthcare and cold chain in North America as

well as around the world (XPO Logistics, n,d.).

2. Company history
In 1989
The company was founded.
In 2004
Express-1, Inc was founded.
 In 2006
Purchased by Segmentz, Inc. (SZI)
In 2008
The company changed its name to Express-1 Expedited Solutions, Inc. (XPO).
In 2009
Express-1 launched Bounce Logistics, Inc.
Express -1 acquired Concert Group Logistics, Inc. (CGL).
In 2011
Express- 1 acquired LRG, a CGL tuck-in.
Express-1 acquired First Class Expediting Services, an Express-1 tuck-in.
In 2012
XPO opened truck brokerage location in Phoenix, Arizona
In 2013
XPO opened a freight brokerage location in Montgomery, Alabama.
XPO opened a freight brokerage location in Jacksonville, Florida.
XPO opened a global forwarding location in Houston, Texas.
In 2014
XPO opened a freight brokerage location in Richmond, Virginia.

XPO opened a freight brokerage location in Cincinnati, Ohio

In 2015
XPO opened a freight brokerage location in Denver, Colorado.
XPO opened a freight brokerage location in Nashville, Tennessee.
XPO opened a freight brokerage location in Kansas City, Missouri.
Currently
XPO opened global forwarding location in Washington, DC.
XPO opened global forwarding location in Washington, DC.
XPO aligned all services under the single global brand of XPO Logistics.
3. Mission statement
The companys mission is to review and approve acquisition, divestiture and

related transactions proposed by the Companys management in which the total

consideration to be paid or received by the Company, for any particular transaction, does

not exceed the limits that may be established by the Board from time to time (XPO

Logistics, 2012).
4. Technology and Service
 The company spent over $400 million a year to innovate world-class service to

customers.
Expedite and Transportation Management: using the web-based TMS for expedite, which

can capture and broadcast shipment requirements within minutes of receiving an

automated or manual order entry.

Freight brokerage with more than 6,700 trucks to deliver goods worldwide.
Global Forwarding.
Intermodal: Rail Optimizer system is used to provide intermodal team with a suite of

proprietary tools for seamless, door-to-door movements of long haul freight.

Last Mile: Using the desktop DMS software, which allows customers to create, manage

and track orders online via eTrack software that is a mobile application utilized by

independent drivers and installers.

Less-than-truckload systems: are designed to facilitate customers demands, with

efficient damage-free transportation of customers freight and the safety of their drivers.
Supply chain: the companys IT operations are ISO/OEC 20000 certified, there are

million transactions flowing through those systems daily (XPO Logistics, n,d.).
(Peterson, n,d.).
5. XPO focused Industries
 E-commerce: the company focuses on e-commerce around the world, especially in

Europe and the US with nearly 20 percent of its revenue comes from e-commerce

(Prince, 2016).
Manufacturing
Retail.
Aerospace.
Chemical.
Health care.
Cold chain (XPO Logistics, n,d.).

6. Management team
7. Market share Market share
8. Awards

XPO is ranked in the second largest logistics provider according to Transport

Topics (2016).
Forbes (2016) ranks XPO #17 among innovative growth companies, and #263

among Americas best employers.

Home Depot (2015) names XPO mid-size truckload carrier of the year
Whirlpool Corporation (2015) names XPO intermodal and LTL carrier of the year
SmartWay (2015) honors XPO for excellence in environmental improvement
Logistics dellAnno Award (2015) honors XPO in Italy for supply chain

innovation
Shippers surveyed in the LTL Carrier Customer Value and Loyalty Report (2015,

Mastio & Company) ranked XPO #1 among national LTL carriers.

XXIV- XPOs core competencies

1. In terms of technology
Tradekey (n, d.). reported that XPO technology is a leading supplier in the field of

access control and supervise products. There are a variety of products from single doors

and alarm monitoring points at different points around the world. The company also

ensures that their technology is committed to continually developing state-of-the-art

technology in order to give provide customers with total system solutions for their access

control needs.
 2. In terms of Freight Forwarding

With up-to-date information, modern technology and vehicles, XPO logistics

offers their customers a variety of service packages, including: Air Freight, Sea Freight,

Time Critical Service, and customs Engineering. Those services allow the company to

handle all kinds of products, giving by their customers in order to make sure that the

products will be delivered at the right time and right place (XPO Logistics, n,d.).

3. In terms of Expedited Transportation

XPOs expedited transportation division is considered as the largest manager of

expedited shipments that cover almost every part in North America. There are hundreds

of trucks driving under exclusive authority, and a huge North American network of

carrier relationships, which allow the company to deal with the most challenging

circumstances (XPO Logistics, n, d.).

Ground Expedited: Using mainly cargo can, straight truck or tractor-trailer, which are

under controlled by the network of owner operators

Web-based managed transportation: XPO is the market leader for web-managed

services for the expedite sector

Air charter expedite: Allows customers to be able to update frequently through a single

point of communication as well as while the load is in-flight (XPO Logistics, n,d.)
Select services
4. In terms of Freight Brokerage
XPOLogistics (n,d.). stated that in North America, XPO Logistics is considered as

the second largest freight brokerage firm after C.H. Robinson Worldwide (ttnews, 2015).

The company has more than 6,700 trucks, and carrier relationships representing over

750,000 trucks. XPO aims to achieve on-time service at competitive prices.

XXV- Strategies
1. Strategy for growth

In 2011, XPO Logistics decided to implement the new Strategy for Growth to

encourage its strengths to develop in order to increase a profitable growth. The strengths

include management expertise, substantial liquidity and potential access to additional

capital. The strategy was planned to manage acquisitions, cold-starts, scale and

optimizations (XPO Logistics, n.d.).

Acquisitions

Since applying the new strategy, XPO tried to acquire to non-asset based logistics

businesses to get benefits from bigger scales and take advantage of the easier access to

capital.
In 2012, XPO acquired 3 big logistics businesses which were Turbo, Kelron and

Continential Frieght Services and Birdbog Logistics.

In 2013, many famous logistics businesses were acquired such as 3PD, NLM.
In 2014, Pacer International was acquired ad made XPO become the third largest

intermodal logistics provider in North America.

Then XPO continues to acquire more highly scalable last mile logistics companies

(XPO Logistics, n.d.).

Cold-starts

XPO planned to open new locations in North America to take advantage of this

rich area because it many qualified salespeople. Moreover, XPO has 23 cold-starts and

expects to plan to hire new branch presidents to record the brokerage operations (XPO

Logistics, n.d.).

Scale and Optimization

 XPO is trying to increase the revenues and profit from the current activities and

tries to invest in an expanded sales and service workforce as well as applying new

technology and engages infrastructure into the best incorporating practices to utilize the

scale and capacity (XPO Logistics, n.d.).

2. Strategic solutions for Supply Chain

This practice is operated at many levels:

Omni-channel fulfillment: XPO tries to expand the network of distribution centers,

increase value-added in warehouse service, specialized technology and retail and e-

commerce fulfillment capabilities which offer the convenience of a single-source

provider.
Reverse logistics: XPO offers tailored solutions for business or consumer product

returns processing, returns management, warranty adjudication, repair and refurbishment,

parts procurement, dispositioning and financial processing.

Factory support: XPO supports the services include demand planning and

procurement, management of inbound supplier materials, vendor-managed inventory,

kitting and sub-assembly, and just-in-time delivery to the manufacturing line.

Manufacturing: XPO expects to find out the solutions for product development,

product stability, packaging design and compatibility, label compliance assistance,

thermoforming, and the filling of bottles, tubes and jars in a variety of sizes. It tries to

train the staff to follow GMP (Current Good Manufacturing Practices) standards.
Packaging: XPO offers full-service secondary packaging capabilities and can provide

materials sourcing, sub-assembly and other single-source packaging solutions, including

design and development, as part of a turnkey offering.

 Aftermarket support: XPO applies cost-saving solutions for critical and service parts

management and delivery, with capabilities that include an in-place depot network,

contact center and meticulous tracking systems.

Transportation management: XPO utilizes robust technology, including many

proprietary applications, for network design, dynamic freight optimization, carrier

selection and management, load tendering with freight audit and payment, and private or

dedicated fleet management.

4PL solutions: XPO can provide fourth-party logistics (4PL) services that align your

global supply chain with your long-term business strategies, increase flexibility and

ensure continuous improvement using Lean tools and methodologies. These solutions

can help to reduce risks and achieve greater efficiency.

Supply chain consulting: This method is XPOs experts will work with partners team to

use sophisticated analysis tools to arrive at the optimal solutions. Moreover, XPO will

give the recommendations for improving infrastructure and other fields for partners

whom need to enhance companies (XPO Logistics, n.d.).

 REFERENCES

Peterson, L. (n.d.). Supply Chain Solutions: XPO Logistics. Retrieved from

http://www.cnsc.net/publications/Documents/xpo-logistics-cns-focus-fall-2015.pdf
Prince, S. (2016, May 9). XPO Logistics Beat Analyst Estimates. Retrieved from
http://marketrealist.com/2016/05/majority-analysts-recommend-buy-xpo-logistics/
Tradekey. (n.d.). Shenzhen Xpo Technology Co., Ltd. Retrieved from
http://www.tradekey.com/company/Shenzhen-Xpo-technology-co-ltd-6877238.html
Transport Topics 2015 Top Brokerage Firms (2015, April 13). Retrieved from
http://www.ttnews.com/articles/basetemplate.aspx?storyid=37885
UNITED STATES SECURITIES AND EXCHANGE COMMISSION. (n.d.) Annual Report.
Retrieved from http://marketrealist.com/2016/05/majority-analysts-recommend-buy-xpo-
logistics/
XPO Logistics. (2012). COMMITTEE. Retrieved from
http://investors.xpologistics.com/phoenix.zhtml?c=204615&p=irol-
govCommittee&Committee=10346
XPO Logistics. (n.d). Global Forwarding. Retrieved from http://uk.xpo.com/Global-
Forwarding/Time-Critical-Services/Solutions
XPO Logistics. (n.d). OUR COMPANY. Retrieved from http://www.xpo.com/content/our-
company
XPO Logistics. (n.d.) Strategy for growth. Retrieved from http://www.xpoaq.com/about/about-
xpo/strategy-for-growth
XPO Logistics. (n.d.). Expedited Transportation Services. Retrieved from
http://www.xpoaq.com/about/our-services/expedited-transportation
XPO Logistics. (n.d.). Supply chain: Strategic solutions. Retrieved from
http://www.xpo.com/services/contract-logistics/strategic-solutions