XPO recently saw a historic surge in service levels, signaling a brand new era for its less-than-truckload business.
With this service quality achievement, the freight giant isn’t just moving goods — it’s raising the bar for efficiency and customer satisfaction.
In a recent discussion with FreightWaves’ Isaiah Buchanan, Anthony Hoereth, senior vice chairman of sales at XPO, explained how the corporate has been in a position to reach the very best service levels in its 40-year LTL history.
In 2021, the corporate laid out its LTL 2.0 plan to strengthen its operations. Then, in 2022, XPO transitioned to a stand-alone North American LTL carrier, committing its entire focus to providing world-class LTL services to its customers. With this shift, XPO has seen a 35 percentage point improvement in service levels year-over-year and a 70% increase in damage-free delivery.
“As recently as November, we set an organization record for damage-free delivery,” Hoereth said. “These improvements are translating into really blissful customers who’re giving us more business.”
To raised deal with its customers’ freight, XPO has enhanced its training programs and loading procedures to equip its field operations with recent service tools. For instance, XPO launched a brand new airbag system that’s driving significant improvements in damage frequency. XPO also began using high-caliber straps to raised secure freight. The corporate also has launched recent programs with its employees to make sure even higher quality loading of its customers’ freight. This mixture has led the corporate to succeed in recent service quality records previously 12 months while also paving a transparent runway for further service improvements across the board.
Under its LTL 2.0 strategy, XPO has been focused on preemptive investments within the network to remain ahead of customer demand. With the expansion of 10 service centers and the addition of 500 net recent doors, XPO’s investments in capability are driving the corporate’s improved service levels and growth. Recent investments include expansions in Garland, Texas to cater to the nearshoring trend and in Salt Lake City to support outbound shipping within the rapidly growing freight market.
XPO can also be making investments to reinforce its fleet. With the addition of two,000 recent tractors and 10,000 trailers — manufactured in-house at its Searcy, Arkansas, facility — the corporate is doubling-down on its efforts to deal with customers’ shipments with more efficiency.
“The investments within the network and the fleet are really on the core of what’s driving the service and quality improvements we’re seeing without delay,” Hoereth said.
XPO’s operational excellence and recent service offerings
Hoereth also shared that XPO is constructing out its premium service offerings as the corporate continues to give attention to quality, on-time service performance and network investments. Notably, XPO’s “retail rollouts” service is offering dedicated support for time-sensitive retail displays, meeting the high demands of retail clients.
Moreover, XPO is launching a “must arrive by date” (MABD) service to offer tiered delivery options for retail customers, from basic transit time guarantees to dedicated shipment monitoring. This recent service will ensure on-time deliveries to big box retailers, providing customers with peace of mind.
XPO has also responded to the growing must ship heavier-weighted LTL-type shipments. As the corporate continues so as to add capability, XPO will likely be higher equipped to handle volume LTL shipments for its customers.
“At XPO, we’re all the time focused on how we are able to higher serve our customers,” Hoereth said.
XPO’s strategic growth and market expansion
XPO is looking forward to continued strategic growth with its recent acquisition of 28 service center locations from Yellow. This move, which XPO describes as a “once-in-a-generation opportunity” for network expansion, will fuel the corporate’s next decade of growth because it focuses on providing best-in-class service to customers.
Hoereth shared that the combination of those centers is being meticulously planned to keep up XPO’s high service standards. The plan includes bringing some centers online as early as the primary quarter of 2024, with most becoming operational over the 12 months and into early 2025.
Through the acquisition, XPO gained access to service centers in prime locations which are optimally situated to serve customers. The extra locations will allow XPO to handle additional shipments more efficiently, decrease transit times in some lanes, and deliver even higher service quality.
These 28 service center properties are also primed to reinforce its service offerings for patrons. For instance, XPO will likely be strengthening its cross-border offerings with additional service centers in Nogales, Arizona, and Minneapolis. In Las Vegas, which is a serious hub for tourism and conventions, XPO’s recent location in town will higher support its trade show offering for patrons.
Looking ahead, XPO’s outlook is concentrated on continued growth and being an awesome carrier partner to its customers. With a pointy give attention to operational efficiency, world-class service and continued investments within the network, XPO isn’t only catering to evolving market demands but additionally paving the way in which for future opportunities for its customers.
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