Description: The article expresses the topic which is about xpo employee portal. XPO Logistics CEO will be interviewed talking about the innovation in technology recently on e-commerce that has become one of the biggest drivers of the economy. Thanks to the rise of e-commerce, XPO has been a terrific performer over the years.
Ecommerce has become one of the biggest drivers of the economy these days, as I said at the top of the show, we are constantly looking out for companies that benefit from the boom we are getting.
But if you’re in Europe copies like XP logistics, the global provider of transportation logistics services that’s been making a killing, thanks to the rise of e-commerce, XPO has been a terrific performer over the years.
In fact, it’s so good, my only real issue with the stock is that it gives you any pull backs which is the reason why we gave up building position my child, it doesn’t come in the darn thing which is up more than 15 percent for 2018.
It’s been a great stock, it reported a fantastic quarter, don’t take it from me, let’s check him with Brad Jacobs, he’s the chairman CEO, that’s Bill of Justice, but not more about how his company’s doing where he’s headed.
Mr. Jacobs, welcome back to man money, good to see you, Brad, the companies have reported so far this year there’s you and there’s amazon that have blown away the numbers and I think that they are synergistic, particularly because you have teamed up with Alexa and Google, because I love it.
Amazon’s growing so much faster than we are, so we’re proud that we grew 11% organically in the first quarter, so compared to other transportation companies where we’re at the top, Amazon, I grew 45%, they’re twice the size of themselves every two years.
But you play a big role in trying to get bigger prodigious to people’s everywhere absolutely and we have Amazon as a customer, many other e-commerce players, the customers were facilitating their growth.
Now one of the things that I thought was interesting of the many things that happened this quarter, you introduced you had reverse logistics, there’s a 170 million return packages that you ant every year.
They are not only the packages, they are telephones, they are large pieces of equipment, it is everything across the board. How about xpo Direct that was something you introduced xpo which is very exciting.
So the old model retailers would have a distribution center in the west coast and have something in the middle of country, there’s something on the East Coast and we take several days or a week even more than a week to get the goods to the end customer.
They have inventory costs, what we’ve done is that we’ve opened up our network, so we’ve opened up 70 five facilities across the whole country warehouses cross dock facilities LTI and last-mile hubs.
We’re renting it out for our customers giving them flexible capacity so that the problem that we’re solving for them is that they’re now closer to the customer, they’re within ninety five percent of the whole population within one or two days.
So it’s very big, that is why in the comm school someone was saying why don’t you partner with UPS, you said you did partner, so the logistics business is very incestuous, so we have certain capacity, we make that available to our competitors.
Sometimes, we need capacity from our competitors, we partner with them, so that happens all the time in a lot of companies, this court has been saying freight costs, can’t you help those companies with your logistics outfit?
So we have almost 20,000 trucks, we have 40,000 trailers, we have ten thousand containers, we have 780 warehouse facilities, so we have capacity, we have wide amount of capacity all around the globe 32 countries.
So when I look at Europe, you’re saying that you’re the first, when you got new Europe, it was not so hot, it’s tighter than North America, how did that happen? It’s the economy over there, the US has tight capacity as well, he says it’s not quite as tight capacity as it was two months ago.
What happened in the list last a few months, it got a little less crazy, a little more capacity, that’s a way to keep inflation down, that’s what I want to hear, it’s balancing, that’s great news.
But Europe is even tighter than it was last month, which was tighter than it was two months before that, but now I’m going to circle back to what I said about the Amazon, I know you’re not as fast Amazon, but you are one of the few companies that the street has been willing to let you invest in a conference.
Most of the conference calls when you talk about invest like today Disney, we’re investing and nobody wants Walmart to invest, but people recognize how much business you have and you are allowed to invest absolutely.
We are investing in technology, we’re investing in sales, we hired a hundred and ninety new salespeople in our LTL or less than truckload operation, we opened a whole new strategic account management or sales organization and you’re up technology.
We’re spending almost a half a billion dollars a year in innovation in technology, what is innovative about sending a package from here to there, so many things that were automating that humans were doing that on my machine, so drones are doing inventory in the warehouse.
If you want to flee the dress, we have drones in our warehouses, they go in it two o’clock in the morning and they do the inventory and the accuracy is almost 100%, they use the barcodes like we’re using from Z Bay, they’ve come down.
Then they look at each unit and they zero, they take a picture of it, it integrates over Wi-Fi into the software, it’s very slick, so other things that we’re doing on there is that we have robots, we called cobots, because they go together with our workers and they do the picking in the package.
It’s a whole slew of toy, you came up with this idea, it turned out to be the right idea at the right time, that’s Brad Jacobs, the chairman CEO of xpo, you have bought this stock, because I have said that.
I think you should continue to buy it, we have monies back, after the break, Jim Cramer is here from there, thanks, see you on YouTube, click here to subscribe and get the jump on my exclusives with CEOs plus market news investing advice and a whole lot more.