US-based business, XPO Logistics, has been awarded a multi-year contract by Electrolux Logistics SAS to manage its logistics operations in France.
The agreement marks the start of Electrolux’s outsourcing strategy for distribution to its trade customers in France, after previously managing these channels in-house from its distribution center in Marly-la-Ville (Val-d’Oise).
XPO is managing the logistics activities at the site using technology-enabled solutions integrated on its proprietary warehouse management platform. Approximately 90 per cent of the inventory is comprised of refrigerators, washing machines and other large products, with the remainder being smaller appliances and parts. All logistics processes — receipt of goods, storage, tracking and order preparation — have been customised by XPO to deliver greater efficiencies for Electrolux.
The two companies will also partner on Electrolux’s upcoming launch of its direct-to-consumer e-commerce site this year. XPO will provide this additional fulfilment from the same 58,000-square-metre distribution centre in Marly-la-Ville, which is staffed in part by 46 colleagues who transferred from Electrolux Logistics SAS.
“We’re confident that XPO has the expertise, scale and technology to support our growth ambitions and make our logistics a strength for our customers and our e-commerce channel,” said Electrolux France President and CEO, Pierre Perron. “This new collaboration is at the heart of our strategy.”
XPO Logistics Europe CEO, Malcolm Wilson, said: “We’re proud that Electrolux, one of the world’s largest appliance manufacturers, has entrusted its outsourced logistics in France to XPO. Our team worked with our new colleagues at the distribution centre in Marly-la-Ville to manage a seamless transition.”
XPO’s leading capabilities in e-commerce and omnichannel logistics, including the largest outsourced e-commerce fulfilment platform in Europe, are expected to begin operating as GXO when XPO’s plan to spin off its global logistics segment in the third quarter is complete. Completion of the spin-off is subject to various conditions, and there can be no assurance that the transaction will occur or, if it does occur, of its terms or timing.
In related news, Meagan Fitzsimmons has been appointed to the leadership team of GXO Logistics, Inc.
Fitzsimmons currently serves as XPO’s Chief Compliance Officer for the logistics segment. She will be responsible for GXO’s global ethics and compliance infrastructure when the planned spin-off is complete.
Fitzsimmons has 14 years of senior experience with premier global corporations and law firms. Prior to XPO, she served as chief compliance officer and assistant general counsel for Revlon, Inc., and as senior compliance counsel with the Colgate-Palmolive Company. Earlier, she was an attorney with Paul, Weiss, Rifkind, Wharton & Garrison LLP, and with Williams & Connolly LLP. She holds a juris doctorate degree from Georgetown University Law Center and a bachelor of arts degree from Northwestern University.
“Meagan’s experience in blue-chip corporate and legal environments is a strong addition to the executive team. GXO’s growth will be supported by high standards of business conduct and risk management,” said XPO Logistics Chairman and CEO, Brad Jacobs.
As previously announced, XPO expects to spin off its logistics business as a separate, publicly traded company in the third quarter of 2021. As the second largest contract logistics provider in the world, GXO will be well-positioned to capitalise on the big three secular tailwinds of e-commerce growth, customer demand for logistics automation and the burgeoning trend toward supply chain outsourcing. The business currently includes approximately 885 logistics locations in 27 countries.