XPO Logistics Introduces New Labor Productivity System for Warehouse Operations

  • Expands XPO Smart technology suite with proprietary analytics to optimize fulfillment for customers

XPO Logistics, Inc. (NYSE: XPO), a leading global provider of supply chain solutions, today announced the launch of a new labor productivity system for XPO Smart, its technology suite of optimization tools. XPO has deployed the new system in 20 logistics facilities to date, including dedicated customer warehouses and hubs for XPO Direct, its shared-space distribution network. Approximately 200 total implementations are planned by year-end.

The company’s proprietary labor productivity system puts warehouse operations under a technological microscope, providing managers with insights at many different levels – from total facility output to the productivity of individual workers and teams. The software analyzes three key drivers in combination: labor output, including gaps that need resolution; fast-moving inventory SKUs for optimal placement within the warehouse; and outbound production measured against on-time targets.

Mario Harik, chief information officer of XPO Logistics, said, “We’re putting new technology in the hands of our logistics operators to realize efficiencies for our customers. Our labor productivity system uses proprietary algorithms and site-specific machine learning to determine how individual output contributes to collective goals. Very quickly, the system has had positive impacts with cost control and fulfillment speed.” 

XPO’s labor productivity system interfaces with the company’s warehouse management system and third-party workforce management applications. The system delivers data through a single dashboard, using machine learning to predict how a decision in one area will affect total operations. Managers gain deep visibility into workforce operations, including the number of scheduled versus active workers by job role in real time.

Labor productivity is the second major component of the XPO Smart technology suite, following the roll-out of the company’s warehouse management system in 2018.

Forward-looking Statements

This press release includes forward-looking statements within the meaning of United States federal securities law. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. All forward-looking statements set forth in this press release are qualified by factors that might cause or contribute to a material difference in actual results, as discussed in XPO's filings with the U.S. Securities and Exchange Commission and linked to the investor relations section of the company's website, www.xpo.com, including: economic conditions generally; competition; XPO’s ability to match its investments in equipment, service centers and warehouses with customer demand; XPO’s ability to attract and retain key employees; and XPO’s ability to develop and implement a suitable information technology system. Forward-looking statements set forth in this press release speak only as of the date hereof, and XPO undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.