Xpo Inc's Business Segments

XPO Logistics, Inc., a Delaware corporation, together with its subsidiaries (“XPO” or the “Company”), is a leading asset-light provider of third-party logistics services. Shippers and carriers outsource their transportation logistics to us, and we facilitate supply chain solutions.

As a third-party, asset-light logistics provider, we utilize our relationships with subcontracted transportation providers—typically independent contract motor carriers, railroads and charter aircraft owners for domestic loads, and air and ocean carriers for international shipments. We had approximately 4,100 trucks under contract to our intermodal, expedited and last mile business units. We have access to additional transportation capacity through our relationships with over 30,000 other carriers.

In September 2011, following the equity investment in the Company led by Jacobs Private Equity, LLC, we began implementing our strategy to leverage our strengths, with the goals of significant growth and value creation. Through the disciplined execution of our strategy, we have built leading positions in some of the fastest-growing sectors of transportation logistics in North America. XPO is:

The third largest freight brokerage firm and a Top 50 logistics company;

The largest provider of last mile logistics for heavy goods and a leading last mile provider to the e-commerce industry;

The largest manager of expedited shipments through our expedited ground, air charter and web-based managed transportation services;

The third largest provider of intermodal services; and

A leading provider of highly engineered, technology-enabled contract logistics services for large manufacturers and service companies.
We believe that our broad service offerings give us a competitive advantage, as many customers, particularly large shippers, increasingly seek to do business with fewer, larger third-party logistics providers that offer deep capacity across a wide range of services. Our services are provided by a well-trained employee base that understands the importance of providing world-class service.

Our Transportation segment consists of our truck brokerage, intermodal, last mile, expedited transportation and freight forwarding businesses. Our Logistics segment consists of our contract logistics business. The differences in our operating and reportable segments from our last annual report are related to an internal management reorganization and acquisitions during the year ended. Our previous Freight Brokerage, Expedited Transportation and Freight Forwarding reportable segments have been consolidated into the Transportation operating and reportable segment while our acquisition of New Breed (previously the Contract Logistics reportable segment) represents the Logistics operating and reportable segment.

XPO Inc Overview

XPO Inc is a global logistics and transportation services provider with a comprehensive range of segments, products, and services designed to facilitate the smooth movement of goods for businesses of all sizes. The company operates across multiple sectors, leveraging advanced technology and infrastructure to optimize supply chain solutions.

Transportation Segment

Transportation Brokerage Services:

XPOs Transportation segment manages a diverse array of logistics services tailored to meet the needs of multinational corporations, medium-sized enterprises, and small businesses. Services include:

- Carrier Selection: XPO identifies and selects qualified carriers or vessels to ensure efficient freight movement.
- Rate Negotiation: The company negotiates competitive rates to benefit both shippers and carriers.
- Shipment Tracking: XPO employs advanced tracking systems for real-time visibility of cargo.
- Billing and Dispute Resolution: The company manages comprehensive billing processes and resolves issues that arise during transit.

Key Services Offered in the Transportation Sector:

1. Truck Brokerage:
- XPO’s truck brokerage is a non-asset service that facilitates the placement of shippers freight with qualified carriers, primarily focusing on truckload (TL) and less-than-truckload (LTL) shipments. The brokerage system allows customers to provide shipping loads via various channels including phone, email, and electronic data interchange.
- Pricing is typically transactional, although contractual agreements for recurring shipments at predetermined rates are also common.

2. Intermodal Services:
- This asset-light approach integrates container capacity, rail brokerage, local drayage, and comprehensive shipment management.
- XPO partners with railroads for long-distance transport and local trucking companies for pickup and delivery, providing customized electronic tracking and optimal routing analysis.

3. Last Mile Logistics:
- XPO leads the last mile logistics sector in North America, particularly for heavy goods. This crucial service encompasses the final transportation leg from distribution centers to consumers locations.
- The company provides white-glove services that include delivery scheduling, unpacking, assembly, and installation, ensuring a high-quality customer experience.

4. Expedited Transportation:
- Operating under brands such as XPO Express, XPO NLM, and XPO Air Charter, this division manages time-critical shipments that often require special handling.
- XPO emphasizes building long-term relationships with independent fleet owners, and the service is characterized by direct transit movements, ensuring quick and efficient delivery.

5. Freight Forwarding:
- XPO’s freight forwarding services manage domestic and international logistics, accommodating both time-sensitive and cost-sensitive shipments.
- The operations are supported by partnerships with various transportation providers, comprehensive documentation handling, and customs brokerage services.

Logistics Segment

Acquisition of New Breed:

In a strategic move to enhance its logistics capabilities, XPO acquired New Breed Holding Company, a leading provider of complex, technology-enabled contract logistics services.

- Client Base: New Breed serves major markets including technology, e-commerce, aerospace, and medical equipment industries.
- Technology-Enabled Services: This acquisition allows XPO to implement sophisticated supply chain solutions that address challenges like high transaction volumes and demand for transparency.
- Experienced Workforce: The integration has resulted in a robust team of over 600 IT professionals dedicated to innovation and customer service, advancing XPOs competitive advantage across all sectors.

Summary

Overall, XPO Inc. represents a significant player in the global logistics and transportation arena, combining traditional logistics with advanced technology and operational expertise. From its services ranging from freight brokerage to last mile logistics and freight forwarding, XPO enables businesses to improve efficiency, reduce costs, and enhance their supply chain capabilities. The strategic acquisitions and technology integrations signify a strong commitment to providing innovative solutions tailored to the evolving needs of businesses in various industries.