2020-03-02
Category:
Author:
Rob

XPO Logistics was listed as the no. 1 Logistics Company in North America following a
fast growth related to their key acquisitions in the past eight years. XPO seems to be firmly
rooted in the position. According to Brad Jacobs, logistics is the last considerable industry
standing that hasn't yet to form a merger. He claimed that the company has plenty of
opportunities yet no other company owns even just 10% of their shares. He reiterated that
consolidation is beneficial to both the customers and the economy at large.

XPO had to temporarily halt their acquisition of assets to try to look into the loss of $600 million
and the issue of their stagnated growth in Europe. The trouble at XPO is, of course, a loophole
that most companies have exploited to pose a challenge to Jacob’s position about logistics and
their abilities.

UPS Supply Chain Solutions and DHL Supply Chain pose a great competition to XPO as
they are ranked at no. 2 and three respectively. They two experienced more growth in the
previous year compared to XPO in terms of revenue, which was much closer to what XPO had
amassed. They also heavily remained to steadfast on their quest to expand their capabilities. J.B.
Hunt Transport Services rose above C.H. Robinson Worldwide, and further, they claimed to be
in for more resources to boost their shares in the market.

Penske Logistics and Lineage Logistics also registered positivity by rising in the ranks making
quite a right amount of acquisitions in the previous year. Lineage was able to surpass Americold
in their line of business in North America due to the purchase of Preferred Freezer Services.
Americold ranked at no. 17 from 9 which they had occupied the previous year while Lineage displaced them at position nine from last year’s 18. Most of the companies aim at making more assets.

Amazon has called off several third-party logistics companies they were working with.
Themselves, have decided to invest in being a third-party logistics company. There is a claim
that there should be a mechanism to evaluate the number of revenues accrued by Amazon
through their devices to their customers. Some people have had their reasons to claim that
Amazon is more prominent.

Evan Amstrong, through his research, he shows that different scenarios lead i.e., averaging from
maintain their position and secondly, buying necessary resources. Jim Rice said that Amazon
makes losses due to logistics and therefore they wouldn’t be interested in venturing into it more.
It is claimed that the main focus by Amazon is to be able to grow and not making profits.

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