XPO Logistics Launches New Flexible Distribution Model for Omnichannel Retail and E-Commerce Customers

  • “XPO Direct” speeds shipments to consumers using shared network capacity
  • XPO to mark launch by ringing Opening Bell at New York Stock Exchange on April 25

XPO Logistics (NYSE: XPO), a leading global provider of supply chain solutions, today launched XPO Direct, a new, nationwide shared-space distribution model for omnichannel retail and e-commerce customers. XPO warehouses and last mile hubs serve as flexible stockholding sites and cross-docks utilized by multiple customers at the same time. Transportation needs are supported by the company’s brokered, contracted and owned capacity. XPO’s broad North American footprint can position goods within two days’ delivery of 95% of the U.S. population and in close proximity to retail stores for inventory replenishment.

Brad Jacobs, chief executive officer of XPO Logistics, said, “Retailers and e-tailers are looking for new ways to position goods more efficiently to shorten delivery transit times without adding overhead. XPO Direct offers customers industry-leading flexibility by sharing our technology, trucks and workforce at over 100 sites, with hundreds of additional sites at the ready. In essence, we’re renting out our scale and disrupting traditional thinking about the capital-intensive, regional distribution model.”

The omnichannel trend is a challenge for many brick-and-mortar retailers as they seek to broaden their reach through e-commerce. The prohibitive fixed cost of adding distribution centers can result in a trade-off of price versus speed, compromising customer service and damaging brand reputation. XPO Direct is a highly responsive solution designed to increase service quality at a fraction of the usual cost.

Mario Harik, chief information officer of XPO Logistics, said, “XPO Direct uses our proprietary technology to link multiple sites with cross-network visibility. Our algorithms analyze customer data to identify patterns in consumer behavior and seasonality. We use this information to predict when and where to place products by SKU number, and reflow goods to other sites as needed.”

XPO invests more than $450 million in technology annually. Recent innovations include XPO’s industry-first voice integration with Amazon Echo and Google Home to track last mile deliveries of heavy goods, the XPO Connect digital freight marketplace with multimodal infrastructure, and WMx, the company’s cloud-based, mobile warehouse platform that creates cutting-edge logistics solutions by integrating advanced automation.

XPO to Ring NYSE Opening Bell on April 25

Chairman and CEO Brad Jacobs will ring the Opening Bell® at the New York Stock Exchange on Wednesday, April 25, 2018, to mark the launch of XPO Direct.

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 attract and retain key employees; the ability to develop and implement a suitable information technology system; and the ability to maintain positive relationships with third-party providers. 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.