GO FIGURE …
$21 millionThe net profit earned by XPO Logistics Inc. on $3.86billion in revenue for its first quarter 2020, a drop of
51% from the same period in 2019.
SOURCE: XPO LOGIS TICS
The U.S. Postal Service (USPS)has confirmed former NewBreed Logistics and XPOLogistics Inc. executive LouisDeJoy to serve as its newestpostmaster general. DeJoy willbe taking the reins of a troubledagency that has reported severalconsecutive quarters of steepfinancial losses as it struggles tobalance the loss of stamp revenue in a digital age with thesudden rise of e-commerce parcel deliveries.
DeJoy comes to the job from a background as CEO ofNorth Carolina-based New Breed Logistics, a contract logistics firm that provided supply chain logistics, program management, and transportation support services. According toUSPS, DeJoy transformed New Breed from a small, fami-ly-owned transportation company with 10 employees into anationwide provider of technology-driven contract logisticssolutions employing more than 9,000 people.
New Breed was acquired by the upstart third-party logisticsservices firm XPO for $615 million in 2014. Subsequently,DeJoy served for about 16 months as CEO of XPO’s supplychain business in the Americas before retiring to join theXPO board of directors, where he served until 2018.
DeJoy will now take the mantle as the 75th postmastergeneral of the United States and chief executive officer ofthe world’s largest postal organization. He was scheduled toassume the position on June 15, replacing Megan Brennan,who became the first woman to hold the title when shebegan the job in 2015.
DeJoy’s confirmation follows recent reports of increasedefforts by President Trump to exert more direct influenceover the USPS in the face of its persistent financial losses.Trump has often asserted that the post office should chargemuch more than its current rates for delivering parcelsshipped by online retailers including Amazon.com Inc. n
Postal Service names former
New Breed Logistics, XPO
executive to top job
Venture capitalists have continued to funnel moneyto companies developing autonomous mobile robots(AMRs) for material handling applications, providing $36 million for Brain Corp. and $40 million forCovariant in recent weeks.
Brain Corp. has historically focused on the roboticfloor-care sector but is now looking to expand intoinventory delivery, shelf analytics, and other applications that improve employee productivity, reducecosts, and enhance the customer experience, thecompany said.
Covariant said it will use its new funding toexpand its AI (artificial intelligence)-enabled automation technology to new industries and acceleratethe building of partnerships like the ones it recentlyformed with industrial robotics supplier ABB andintralogistics systems supplier Knapp.
In addition to Brain Corp. and Covariant, severalother players in the sector recently announced roundsof venture funding. Startup SVT Robotics, which makesa software platform thatenables businesses to rapidly adopt robotics, saidit had landed $3.5 millionin funding in early May.Around the same time,Beijing-based ForwardXRobotics announced thatit had raised $15 millionto expand into the North American market. Althoughit’s mainly known for making the “Ovis” intelligentsuitcase that follows its owner through airports andhotel lobbies, ForwardX also offers intelligent warehousing robots. ForwardX AMRs have been deployedby e-commerce and third-party logistics (3PL) firmslike JD.com and DHL, according to the company.
“We are seeing huge challenges for supply chainleaders across the logistics and manufacturing industries, from growing labor shortages and consumerexpectations to a greater need for flexibility,” NicolasChee, founder and CEO of ForwardX Robotics, saidin a release. “Our AI-based automation solutionsallow our customers to adapt to a rapidly changinglandscape and boost their productivity and efficiencythreefold. With the fallout of Covid- 19 already here,enterprises will be looking to future-proof their operations, and we’re going to be there with them as theymake the transition.” n
Investors pour funds into roboticsector amid rising demand forautonomous operations
