One of the world’s ten largest providers of transportation and logistics services US-based XPO Logistics have recently unveiled and launched XPO Direct, a new countrywide shared-space distribution model for e-commerce and omnichannel retail customers.
For many brick-and-mortar retailers, the omnichannel trend is a challenge as they continue to further broaden their reach and foothold through e-commerce.
Chief Executive Officer of XPO Logistics, Bradley Jacobs 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.”
Prohibitive costs associated with additional distribution centers can lead to a tradeoff of actual price versus speed, this results in the customer service level being compromised in turn damaging the reputation of a brand.
XPO’s solution to this is the highly responsive XPO Direct that will enhance service quality at a fraction of the usual cost.
XPO Logistics Chief Information Officer, Mario Harik 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.”
Along with XPO Direct, the company’s recent innovations include voice integration with Amazon Echo and Google Home to track last mile deliveries of heavy goods, this is the first of its kind in the industry. The company has also developed WMx, a cloud-based, mobile warehouse platform that provides cutting-edge logistics solutions by integrating advanced automation.
XPO Logistics invests over $450 million in technology each year.