DC Velocity - December 2015

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2015 has been a transformational year for XPO Logistics. We became a truly global company with the addition of a leading transport and logistics platform in Europe and Asia. We completed our supply chain range in North America with extensive less-than-truckload capabilities. And we expanded our presence in contract logistics, last mile, drayage and truckload. There’s no question that we are a different and better company now than 12 months ago.

This is purpose-driven growth. We are executing a disciplined response to the requirements of our customers – the requirements we meet now on multiple levels, and the services we anticipate our customers will need in the future.

While there are many nuances to our approach, the two main considerations for us in creating value for customers are scale and technology.

Scale matters in our industry. By growing XPO into a $15 billion company, we’ve positioned ourselves to provide value for our customers. We can invest more in technology. We control deep capacity on both sides of the Atlantic. We hold leading positions in the fastest-growing areas of transportation and logistics because they are the areas customers need most. And we operate as a highly integrated organization to provide intense customer service across our supply chain range.

The other area is technology – and scale plays a part here as well. XPO has an IT budget of over $400 million this year, with more than 200 projects under development. We’re happy to make that investment, because we see the ongoing enhancement of our proprietary technology as being critical to our ability to continually improve customer service.

We’re also looking to the future, when trends such as artificial intelligence and nanotechnology are likely to disrupt our industry – we’re poised to embrace innovation, no matter how dramatic the change, for the benefit of our customers. Furthermore, as more companies seek end-to-end supply chain solutions from fewer, larger providers such as XPO, technology is the glue that continues to deliver our solutions to customers with the utmost efficiency.

These are exciting times for XPO Logistics and for transportation and logistics overall. We are committed to delivering world-class customer service every day.