©2017 xpo logistics, inc. investor presentation...we’ve proven that rich data and industry...
TRANSCRIPT
©2017 XPO Logistics, Inc.
2©2017 XPO Logistics, Inc.
a g e n d a03 | Why XPO
TRANSPORTATION09 | Less-Than-Truckload
13 | Full Truckload
17 | Intermodal and Drayage
21 | Expedite
25 | Global Forwarding
29 | Last Mile
SUPPLY CHAIN34 | Contract Logistics
39 | Managed Transportation
APPENDICES43 | Customers
46 | BusinessProfile
48 | Culture
50 | Sustainability
3©2017 XPO Logistics, Inc.
O v e r v i e w
w h y x p oOur highly integrated network delivers customized supply chain solutions to the most successful companies in the world.
■ LESS-THAN-TRUCKLOAD
■ FULL TRUCKLOAD
■ INTERMODAL AND DRAYAGE
■ EXPEDITE
■ GLOBAL FORWARDING
■ LAST MILE
■ SUPPLY CHAIN LOGISTICS
■ MANAGED TRANSPORTATION
4©2017 XPO Logistics, Inc.
O v e r v i e w
w h y x p o
89,000employees
1,431locations
34countries
50,000customers
Companies choose XPO because we have the global scale to manage and transport their goods anywhere in the world.
5©2017 XPO Logistics, Inc.
W h y X P OO v e r v i e w
■ Largest last mile logistics provider for
heavy goods in North America
■ Largest manager of expedited shipments
in North America
■ Second largest contract logistics
provider worldwide based on facility
space, with the largest outsourced
e-fulfillment platform in Europe
■ Second largest provider of less-than-truckload transportation in North
America, and a leading LTL provider in
Western Europe
■ Second largest freight broker worldwide,
with a leading road fleet in Europe
■ Third largest provider of intermodal and drayage services in North America
Customers rely on XPO because of our experience. With
leadership positions
across the supply chain,
we’ve proven that rich data
and industry expertise give
our customers a
competitive advantage.
6©2017 XPO Logistics, Inc.
w h y x p oOur customers continue to grow with us because of our technology. It’s what
fuels our global network—
creating efficiency and visibility, and powering
innovation in automation
and customization.
We invest approximately $425 million a year in technology.
O v e r v i e w
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w h y x p oUnified by a single, unwavering principle:
Accountability is in our DNA.
Passion drives our people
to deliver for our customers.
O v e r v i e w
TRANSPORTATION
©2017 XPO Logistics, Inc.
LESS-THAN-TRUCKLOADThe leader in on-time pickup and delivery, damage-free
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L e s s - T h a n - T r u c k l o a d
Over 400 LTL locations in North America
■ Service to approximately 99% of U.S. zip codes
11©2017 XPO Logistics, Inc.
e x p e r i e n c eRanked #1 for on-time and damage-free performance.
■ Fastest transit times in
the industry
■ More next day and 2 day lanes than any other LTL carrier
in North America
■ Business intelligence reporting
and custom analytics drive
continuous improvement
■ A leader in Western Europe in
LTL (palletized) service
■ Over 30 years of experience
MAJOR CAPACITY Approximately 16,000 tractors and 39,000 trailers in North America
Safe, modern line-haul fleet
DAMAGE PREVENTION
Proprietary, heavy-duty decking system
Safety-alert technology installed in fleet
RELIABLE
13,000 uniformed, professional drivers
IT-enabled dock operations
Customer Care team dedicated to your business
L e s s - T h a n - T r u c k l o a d
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t ec h n o lo gy
■ Pre-populates information
and templates for frequently
used items
■ Reports on the up-to-the-
minute status of shipments
and manifests
■ Quotes rates on demand based
on your pricing agreement
■ Tracks intuitively, with
predictive search capabilities
LTL.xpo.com is a personal suite of shipping management tools and resources.
L e s s - T h a n - T r u c k l o a d
for ease-of-use as ranked by LTL shippers in North America#
full truckloadMassive capacity managed with cutting-edge technology
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F u l l T r u c k l o a d
Our robust capacity mix ensures optimal equipment and price.
■ Brokerage network of over 38,000 carriers with more than a
million trucks in North America
■ Dry vans, refrigerated,
specialized and permitted
flatbeds, and dropdecks
■ Constant influx of big data on
lanes, pricing, carrier ratings
and market conditions
■ Fierce commitment to execution
and follow-through
■ Single point of accountability
15©2017 XPO Logistics, Inc.
■ FINISHED GOODS OF ALL TYPES
■ RAW MATERIALS AND PARTS
■ TEMPERATURE-CONTROLLED
■ HIGH VALUE AND HIGH SECURITY
■ HEAVY HAUL AND OVERSIZED
■ SINGLE-SOURCE MULTINATIONAL
e x p e r i e n c eF u l l T r u c k l o a d
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t ec h n o lo gyFreight Optimizer combines the best in technology with the best in customer service.
Powerful tools source
the optimal capacity for
each load by analyzing
data from multiple
sources, weighted by
cost and performance.
F u l l T r u c k l o a d
INTERMODAL AND DRAYAGELarge, owned container capacity and national drayage network for seamless solutions
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I n t e r m o d a l a n d D r a y a g e
A top three intermodal provider in North America.
■ Approximately 9,500 53-ft. boxes and 8,000 chassis exclusively controlled by XPO, and access to small box capacity
■ Leading U.S. drayage capacity of 2,200 contracted
independent owner-operators
■ HazMat or tank certifications
held by majority of contractors
■ Access to over 25,000 additional drayage trucks
■ Network of over 40 terminals serving every major U.S. rail ramp and port
■ Large Mexico-based chassis
fleet and ramp personnel
■ Cross-docking and transloading
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E X P E R I E N C EWe analyze our customers’ shipping patterns and identify savings opportunities.
■ National rail ramp
drayage network
■ TWIC-compliant port drayage
■ Ocean drayage management
services
■ Certified HazMat handling
of freight
■ Safety-conscious contract carriers
■ A focus on visibility, follow-
through and communication
■ Over 30 years of experience
in Mexico
INTERMODAL SERVICE LOCATIONS
DRAYAGE U.S. SERVICE AREAS
Kansas City
I n t e r m o d a l a n d D r a y a g e
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t ec h n o lo gyProprietary Rail Optimizer intermodal management system is driving best-ever on-time performance.
■ Tracks door-to-door movements of long haul freight
with GPS on containers
■ Secures 53-ft. container, small
box and drayage capacities
■ Communicates constantly
with railroads to proactively
identify any delays
■ Fosters driver communication
during drayage legs
■ Keeps shippers informed through EDI integration and an online, self-service portal
I n t e r m o d a l a n d D r a y a g e
expediteTime-critical deadlines met by ground, air and automated TMS
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E x p e d i t e
GROUND TRANSPORTATION ■ Extensive North American
network of independent owner-
operators with capacities from
1 to 44,000 lbs.
■ Optimal equipment: cargo vans,
sprinters, straight trucks,
tractor-trailers, lift gate,
temperature-controlled
■ Special handling includes
blankets, straps and pads, thermal
mapping, debris removal and more
AIR CHARTER ■ Proprietary online bid system
collects competitive bids in a
transparent manner
■ Immediate access to quick-
launch carriers, project cargo
carriers and AN-124 operators
■ Air and ground combinations
for door-to-door service
■ Air freight services availablemanager of expedited shipments in North America#
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e x p e r i e n c eOVER 30 YEARS OF EXPERIENCE■ Rapid, reliable response
minimizes supply chain and
production disruptions
■ Experienced owner-operators
understand the urgent nature
of expedite
■ Disciplined processes for high-
value, high-security goods
■ Ability to pivot quickly between
modes as part of XPO’s integrated service range
CROSS-BORDER NETWORK ■ Expedited movements in and
out of Mexico and Canada
■ Urgent service to eight Mexican
airports and on to 18 cities
■ Intra-Mexico capabilities and
seasoned organization
■ Bilingual cross-border specialists
E x p e d i t e
24©2017 XPO Logistics, Inc.
T ec h n o lo gy
The entire expedite experience is rapid, disciplined and transparent.
XPO’s expedite capabilities include the largest web-based TMS for urgent load tendering in North America.
■ Over 700 qualified carriers can
potentially bid on your load
■ Over 95% of shipments are
sourced in 24 minutes or less
■ Loads are self-posted via
automated or manual order entry
■ Requirements are broadcast to carriers within minutes of receipt
■ Loads are assigned electronically
based on competitive carrier bids
■ Automated GPS and cellular track and trace, proof of delivery,
invoicing and reporting
E x p e d i t e
GLOBAL FORWARDINGShipments of any size, shape or weight, anywhere in the world
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G l o b a l F o r w a r d i n g
Our global footprint comes with local expertise in more than 15 countries.
Annually, we facilitate:
■ Over 86,000 customs entries
■ Over 157,000 TEUs of
ocean freight
■ Over 220,000 shipments worldwide including
44,000 in the U.S.
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e x p e r i e n c e
We have the expertise to guide your freight through the regulatory processes and
custom points at thousands of destinations in Asia, Europe and the United Kingdom.
G l o b a l F o r w a r d i n g
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t ec h n o lo gy
Our technology has eyes on the world, giving you shipper information, weight, tonnage, consignee, number of SKUs, transit time and real-time location status.
G l o b a l F o r w a r d i n g
last mileIndustry-leading consumer satisfaction for superior brand protection
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L a s t M i l e
We facilitate more than 12 million home deliveries and installations annually.
■ 45 market delivery centers with service across the U.S.
■ Over 500,000 installations
and assemblies a year
■ 35,000 thresholds crossed
every day
■ Professional deliveries to homes, businesses and
new construction sites
■ Pickup and delivery service in over 500 markets in
North America
■ Seven times larger than our
nearest competitor
■ European service available
in select countries
#last mile logistics provider for
heavy goods in North America
31©2017 XPO Logistics, Inc.
e x p e r i e n c eIndustry-leading track record for consumer satisfaction with retail and e-commerce deliveries.
■ Cutting-edge mobile technology
ensures process consistency
■ Code compliances rigorously
maintained and documented
■ Online order entries, street-
level geocoding and UPC label creation
■ Pre-delivery inspection,
with expert touch-up and
repair as needed
■ Shipment optimization, route-
building and delivery scheduling
■ Installer network includes
licensed master plumbers
and electricians
L a s t M i l e
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t ec h n o lo gyProprietary, customer-centric technology is developed exclusively for the last mile logistics of heavy goods.
■ Highly flexible and customizable
■ Powerful feedback loop identifies issues for quick resolution
■ Proactive exception reporting
within one hour or less
■ Automated notifications of
appointments and deliveries
■ GPS tracking with live ETA updates and PODs
L a s t M i l e
S u p p ly C h a i n
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contract logist icsCustomized solutions designed to give customers a competitive advantage
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s c a l eC o n t r a c t L o g i s t i c s
■ $85 billion in goods distributed across a broad
range of industries
■ 160 million square feet of
logistics facility space globally;
86 million in North America
■ Skilled workforce of
approximately 50,000 globally;
25,000 in North America
■ Global footprint ensures
consistent service for our
multinational customers
■ Use of automation, robotics
and other technical advances
■ Flexible solutions for
seasonal volumes
■ Ability to add sites quickly
in any market
750+Global Supply
Chain Locations
Second largest contract logistics provider worldwide based on facility space, with
the largest outsourced e-fulfillment platform in Europe.
36©2017 XPO Logistics, Inc.
C o n t r a c t L o g i s t i c s
e x p e r i e n c eWe collaborate with industry-leading companies to create customized solutions that deliver results.
■ Industry vertical expertise
■ Operational excellence
■ Long-term relationships
■ TECHNOLOGY Precise fulfillment, easy returns and repairs
■ OMNI-CHANNEL RETAIL
Retail and e-commerce solutions, brand protection
■ FOOD AND BEVERAGE
High-value-add services, all temperature ranges
■ AEROSPACE AND GOVERNMENT Highly engineered, critical supply chain solutions
■ CONSUMER PACKAGED GOODS Turnkey solutions, integrated packaging
■ CHEMICAL Safe, secure processes, environmentally sound
■ OIL AND GAS Upstream, midstream and downstream
■ AUTOMOTIVE AND INDUSTRIAL Global best practices, cutting-edge technology
■ AGRIBUSINESS Innovative storage, handling and distribution
■ HEALTHCARE Time-critical agility, consistently responsive
37©2017 XPO Logistics, Inc.
Our industry-leading technology solutions are designed and implemented to optimize your specific supply chain.
■ Secure, private cloud hosting
■ Real-time visibility of
transactions, order status,
and inventory
■ Rapid integration to leading
ERP Systems
■ Proprietary management systems for warehousing, order
processing and transportation
■ Highly scalable solutions
■ Our technology tracks more than
five billion inventory units a day
■ ISO 20000 and ISO/IEC 27001
certified
t ec h n o lo gyC o n t r a c t L o g i s t i c s
38©2017 XPO Logistics, Inc.
■ Real-time inventory and
transaction visibility
■ Singular integration for all
supply chain solutions, including
warehousing and transportation
■ Highly configurable, rules-based
engine enables customer-
specific business decisions
■ Integrated to all supply chain
applications
■ Alerts focused on addressing
supply chain exceptions and
improving customer service
■ Quick, easy search capabilities
with data extraction and download
■ Role-based security
■ Validated by auditing authorities
to satisfy general computing
practices and SSAE-16
t ec h n o lo gyC o n t r a c t L o g i s t i c s
MANAGED TRANSPORTATIONCustomized transportation solutions that decrease costs and increase efficiencies
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M a n a g e d T r a n s p o r t a t i o n
scale and experienceLeverage our technology, expertise and buying power to manage your freight expense.
Customers trust us with approximately $2.7 billion of
freight under management.
SCALE Access to market intelligence and buying power
OPTIMIZATION
Proprietary technology that integrates with thousands of carriers
RELIABILITY 24/7 mission-critical control tower and expertise
41©2017 XPO Logistics, Inc.
t ec h n o lo gyFully customizable services that enhance flexibility and provide you with constant visibility and control.
■ TMS data sharing
■ Customized dashboards
■ Secure online portals
■ KPI performance scorecards
■ Door-to-door online visibility
■ Freight spend analysis
■ Shipping pattern analysis
■ Robust reporting, scheduled
and on-demand
■ ISO9001, ISO14001 and
Lean certified
M a n a g e d T r a n s p o r t a t i o n
APPENDICES
©2017 XPO Logistics, Inc.
46©2017 XPO Logistics, Inc.
B u s i n es s P r o f i l eXPO is a top ten global logistics company. 2016 Revenue of $14.6 billion
High-value-add services and engineered solutions
Freight moved using the most efficient and cost-effective mode
■ Omni-Channel and E-Commerce Fulfillment
■ Reverse Logistics
■ Technology-Enabled Managed Transportation
■ High-Value-Add Warehousing and Distribution
■ Supply Chain Optimization
■ Truckload Transport and
Brokerage, Expedite
■ Less-Than-Truckload
■ Intermodal and Drayage
■ Global Forwarding
■ Last Mile
37% of revenue 63% of revenue
Our highly integrated network of people, technology, assets and expertise helps our customers manage their goods more efficiently throughout their supply chains.
A p p e n d i x
47©2017 XPO Logistics, Inc.
Full-year 2016 highlights
■ $14.6 billion of gross revenue
■ $84.5 million of net income
■ $625.4 million of cash flow from operations
Named Fortune 500’s fastest-growing company
Ranked by Forbes as #17 among innovative growth companies and
#263 among best employers
B u s i n es s P r o f i l eA p p e n d i x
48©2017 XPO Logistics, Inc.
Our values drive our people. Our people drive our business.
As a global leader in
our industry, we have a
responsibility to set an
example that is beyond
reproach. Our XPO values are the heart of our culture.
They are the reasons
why our customers and
investors believe in us.
c u lt u r eA p p e n d i x
■ T r u s t w o r t h y
■ R e s p o n s i v e
■ U n i t e d
■ C o m m i t t e d
■ E n t r e p r e n e u r i a l
■ S a f e t y - F o c u s e d
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XPO is committed to safe practices throughout our global operations.
The disciplines,
certifications and insurances we have in
place are the framework
of our comprehensive
safety infrastructure.
■ A culture that engages our employees
in proactive safety awareness as a way of
doing business
■ Proprietary management software
and rigorous disciplines for health and safety
functions and regulatory compliance
■ Automated monitoring of carrier safety
ratings, insurance qualifications and operating
authorities in real-time
■ Corporate and local safety professionals
stationed in all of our operating regions to
encourage a zero-incident mindset
■ Company programs that reduce cargo damage,
improve cargo security and enhance worker safety
■ Customizable theft mitigation programs
and root cause damage analyses
■ Professional training for customer dock workers,
drivers and our owner-operators
c u lt u r eA p p e n d i x
50©2017 XPO Logistics, Inc.
As a leader in sustainability, we use our initiative and innovation to reduce environmental impact.
The range of supply
chain solutions we offer
presents numerous
opportunities to help
our customers achieve
their green objectives.
■ XPO owns the largest natural gas truck fleet in Europe and will lower the carbon footprint
of trucking in Paris by using natural gas trucks
for the road transport portion of France’s first
intermodal urban rail shuttle (2017)
■ Launched government-approved mega-trucks
in Spain, expected to reduce CO2 emissions by
over 25% (2016)
■ Named a Top 75 Green Supply Chain Partner by Inbound Logistics (2016)
■ Committed to a 6% CO2 reduction in 2018 vs. 2016 via the COÇ charter; and awarded
the label “Objectif CO2” for outstanding
environmental performance of transport
operations in Europe by the French Ministry of the Environment and the French Environment and Energy Agency (2016)
■ Honored for excellence in environmental
improvement by SmartWay (2015)
■ ISO14001-certified logistics facilities ensure
environmental compliance
S u s ta i n a b i l i t yA p p e n d i x