GXO
📦 GXO specializes in contract logistics, a growing sector driven by increasing complexity and outsourcing trends.
🌍 The company has a global reach with 1,000 facilities in 28 countries and a diversified customer base.
🤖 GXO is a leader in automation, with 30% of its operations automated, significantly higher than the industry average (8%).
🔒 High customer retention rates (95%) due to the specialized and critical nature of its services.
@emeritoquintana:
“Another one we have is GXO, which is one of the subsidiaries of XPO, which is interesting because they do what is called contract logistics. This is the part that I liked the most because logistics is becoming more complex, and there is a trend towards subcontracting, towards outsourcing, towards having someone do logistics tailored for you, even if you are a cosmetics or defense or clothing company or whatever, for you it is a small part of the costs, but you convert a fixed cost into a variable one. GXO has a 6% market share, although it is already large, so it has a long way to go, and no client weighs more than 4%. It is very diversified, they have 1,000 facilities in 28 countries. So, as it is something specialized and it is key for companies, well, you have long-term contracts and a customer retention, I think, of 95% on average. Advantages, especially economies of scale, the global reach for multinational companies, more automation than the average, 30% of what they have is automated, and the average is 8%, switching costs because once you are already working with someone, it is very risky to change because these take care of everything, they take care of storage and distribution of inventory, but also of returns and packaging, personalized packaging, and many details of each company and each industry. And it is very well managed because it has the culture of Bradley Jacobs, whom we already know. The problem is that it seems that they want to buy it from us, and it would be a shame, even with the rise it has had due to the rumors of purchase, it is worth 7,000 million. In 2027, of EBITDA, it could do 1,300 or maybe more, so it would be a shame if they bought it from us. Well, there we have it.”
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