XPO Logistics Organization’s Analysis

Subject: Logistics
Pages: 2
Words: 558
Reading time:
2 min
Study level: Bachelor

The essence of creating outstanding logistics is to manage an organization’s resources to provide clients with a high-quality service. Indeed, leading companies know that a proper logistical system is a key to attaining a competitive advantage in the market (Bowersox, 2019). Logistical value generation results from collaborative work of the five main domains: transportation, inventory, warehousing and packaging, order processing, and facility network (Bowersox, 2019). Order processing deals with analyzing information about a specific purchase made by a customer. The inventory part is necessary for matching the consumers’ needs with storing capacity. The transportation strategy is aimed at relocating products geographically to deliver them to clients (Bowersox, 2019). Warehousing and packaging are crucial for handling, sorting, and loading materials intended for transportation (Bowersox, 2019). Lastly, a facility network “is designed with determining the number, location, and ownership arrangement of all types of facilities” (Bowersox, 2019, p. 45). Overall, the well-qualified and interconnected functioning of these five elements of the logistical system gives a company a competitive edge.

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XPO Logistics became one of the leading logistics firms due to its ability to organize its resources and competencies to meet the customers’ expectations. This company was listed among the ten most successful international logistics organizations in 2020 (United States Securities and Exchange Commission [USSEC], 2020). Its annual revenue reached $17 billion, which was generated from transportation and logistics (USSEC, 2020). XPO opened its offices in thirty countries, providing employment to more than 100,000 people worldwide, including managers, engineers, operators, and logisticians (USSEC, 2020). This company is involved in the transportation of various items, ranging from food and beverages to e-commerce and industrial products (USSEC, 2020). One of the strategies that made XPO successful was implementing machine learning software to assist its employees in logistical operations (USSEC, 2020). Furthermore, the firm owns 500 cross-docks, 15,000 tractors, and “200 million square feet of facility space” (USSEC, 2020, p. 5). All these supplies and materials allow for regulating product flow through warehouses and delivery to end-users.

In addition to physical resources, XPO employs talented personnel and intelligent machines capable of logistics value generation by coordinating the five essential components. For example, order processing and facility network management are done with the help of machine learning software (USSEC, 2020). Inventory strategies, warehousing, and packaging are more efficient due to the implementation of robots programmed and controlled by skilled workers (USSEC, 2020). Indeed, the process from receiving and confirming an order to preparing an item for delivery used to take five days. The automated process can now be completed in one day (USSEC, 2020). Fast transportation is enabled by the availability of more than 40,000 trucks of various capacities, which allows safe and quick shipping (USSEC, 2020). Moreover, the strategy that helped XPO retain leading positions in the logistics market is creating an inclusive, respectful, and supportive culture that values every employee’s contribution. This approach allowed growing a cohort of highly efficient and dedicated workers.

An organized operation of the five elements of logistical work allowed XPO to overpass its rivals and become one of the fastest-growing companies globally. In fact, this firm was listed in Fortune 500 and Fortune 50 as soon as five and seven years after its establishment, respectively (USSEC, 2020). Overall, XPO’s dynamic network of skilled staff, storage facilities, transportation, and technological advancements enabled logistics value generation to meet customer expectations.

References

Bowersox, D. (2019). Supply chain logistics management (5th ed.). McGraw-Hill Higher Education.

United States Securities and Exchange Commission. (2020). XPO Logistics, Inc. Web.