Transport and logistics company, XPO Logistics, has been awarded a multi-year contract renewal by Arco, the UK’s largest supplier of safety equipment, workwear and safety services.
XPO Logistics provides Arco with an integrated, digitally managed transport solution for less-than-truckload (LTL) distribution in the UK. The shared network uses XPO technology to manage direct order entry, track freight consignments and deploy resources. 4G scanners at the Arco site improve trunk utilisation before onward shipping to 11 LTL sites.
“We have seen a continuous improvement in distribution performance over the two years of our partnership with XPO,” said Arco Divisional Director of Logistics, Neil Griffiths.
“This has helped us strengthen our supply chain relationships at all levels.
We look forward to our ongoing collaboration,” he said.
“Our team is excited to provide Arco with a transformative solution to support their UK expansion,” said XPO Logistics Managing Director – UK and Ireland, Dan Myers.
“Our investments in dynamic, multichannel solutions continue to deliver value for our customers,” he said.
In other news, XPO Logistics reported its Q2 2019 financial results in August. The company confirmed a revenue of $4.24 billion USD (€3.8 billion) compared with $4.36 billion (€3.9 billion) for the same period in 2018.
XPO Logistics Chairman and CEO, Bradley Jacobs, said the company “beat on EPS, adjusted EBITDA and free cash flow in the second quarter, offsetting a softer operating environment with cost discipline and margin gains”.
He added that North American freight brokerage improved net revenue margin to 20.4 per cent, up 360 basis points from Q2 2018.
“In North American less-than-truckload, we improved yield by 3.9 per cent and realised a record adjusted operating ratio of 80.3 per cent,” said Jacobs.
“We’re implementing innovations in North American LTL to drive the next leg of profit improvement.
“Our workforce productivity tools are returning positive results in 18 pilot service centres ahead of the national roll-out to all 290 LTL centres this year.
“In addition, we’re developing an entire suite of proprietary tools that utilise machine learning for dynamic pricing, route optimisation of pickup and delivery, linehaul efficiency and yard management. We’re on track to deliver at least $1 billion of EBITDA in LTL in 2021.
“Our updated guidance provides more visibility into our outlook on 2019. We’ve increased our free cash flow range by $50 million, and raised the low end of adjusted EBITDA by $25 million, while expecting revenue to remain flat,” he said.