DC Velocity - March 2020

18 DC VELOCITY MARCH 2020 www.dcvelocity.com XPO Logistics Inc., which built a sprawling transport and logistics empire through a series of high-profile acquisitions, is now looking to unwind some of those moves by selling or spinning off “one or more” of its business units, the company said.

Greenwich, Connecticut-based XPO said it has not set a timetable for completion of the review process and has not determined which, if any, business units would be sold or spun off. However, the company has said it does not intend to sell or spin off its North American less-than-truckload (LTL) unit.

The company views the divestiture as the “best way to continue to maximize shareholder value,” Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said in a statement, indicating that the stock prices of individual business units would be greater split up than combined. The company defines itself as a network of people, technology, and physical assets in 30 countries, with 1,531 locations and 100,000 employees.

The move represents a sharp reversal in strategy on the transportation conglomerate’s part. Just two years ago, XPO was still on the lookout for new acquisitions and even poached a top logistics executive from Amazon. com Inc., hiring Kenneth Wagers as its chief operating officer in April 2018 “in anticipation of significant M&A activity.” n

Football fans who tuned in to the 54th Super Bowl last month probably just expected to see a sports contest, but “the big game” sent ripples throughout the logistics world as well.

On the field, the game featured a subplot that echoed the long-running battle between two foundational freight transportation modes—ground delivery versus air express. On the ground side, the San Francisco 49ers deployed their reliable offensive line and a bruising running game. In contrast, the Kansas City Chiefs took to the air with their high-scoring attack formed around long passes.

As for the logistics-related impacts, parcel delivery giant UPS Inc. warned before the event of possible service delays for customers in neighborhoods around Miami’s Hard Rock Stadium, where the game took place, due to government security measures and potential road closures.

Viewers may also have noticed Super Bowl ads centered on one of the
retail supply chain’s hot-button issues: e-commerce order fulfillment.
Retail giant Walmart ran a spot promoting its “click-and-collect” service
that featured a parade of TV and movie characters lining up at stores to
pick up their orders from a bemused curbside attendant. Seen as a push-
back against Amazon.com Inc.’s vaunted e-commerce delivery network,
the ad included cameos by characters from movies like “Star Wars,” “Toy
Story,” “Bill & Ted’s Excellent Adventure,” and “Back to the Future.”
When the dust had settled, Kansas City’s express-air strategy had pre-
vailed over San Francisco’s ground-delivery approach, and the winners
hoisted a trophy delivered by another industry powerhouse, FedEx Corp. n

NEWSMAKERS

Software company Trimble’s board of directors has elected Robert G. Painter to succeed Steven W. Berglund as president and CEO. … Wildeck Inc., a manufacturer of material handling equipment and safety products, has welcomed Richard Day as its new chief financial officer. … Magline Inc., manufacturer of Magliner aluminum material handling equipment, has added John Baird as chief financial officer. … Transportation and logistics company Comcar Industries has appointed Randall T. Clark president and CEO, and Christopher Shepherd vice president of purchasing and fleet management. … Iptor Supply Chain Systems, a distribution and supply chain management, planning, and logistics software and services provider, has appointed Jim Smith president of its operations in the Americas. … Prashant Shah has joined last-mile delivery company LaserShip as vice president, supply chain. He comes to the company with 10 years of senior management experience in logistics, operations, and distribution. … Heinz Hössli has joined material handling solutions provider Interroll as chief financial officer. In other Interroll news, the company has appointed Carlos Álvarez García-Luján managing director for Interroll España S.A. … California’s Port of Oakland has named Danny Wan executive director. … IT company Ingram Micro Inc. has promoted Mike Zilis to executive vice president and chief financial officer.