XPO launches shared-space distribution model for e-tailers

XPO Logistics has launched a US-wide shared-space distribution model for omnichannel retail and e-commerce customers.

In a statement about the new “XPO Direct” service issued yesterday (24 April), the company said: “XPO warehouses and last mile hubs serve as flexible stockholding sites and cross-docks utilized by multiple customers at the same time. Transportation needs are supported by the company’s brokered, contracted and owned capacity. XPO’s broad North American footprint can position goods within two days’ delivery of 95% of the U.S. population and in close proximity to retail stores for inventory replenishment.”

Bradley Jacobs, chief executive officer of XPO Logistics, said, “Retailers and e-tailers are looking for new ways to position goods more efficiently to shorten delivery transit times without adding overhead. XPO Direct offers customers industry-leading flexibility by sharing our technology, trucks and workforce at over 100 sites, with hundreds of additional sites at the ready. In essence, we’re renting out our scale and disrupting traditional thinking about the capital-intensive, regional distribution model.”

Mario Harik, chief information officer of XPO Logistics, added: “XPO Direct uses our proprietary technology to link multiple sites with cross-network visibility. Our algorithms analyze customer data to identify patterns in consumer behavior and seasonality. We use this information to predict when and where to place products by SKU number, and reflow goods to other sites as needed.”