GXO Logistics: Culture Post-XPO Spin-Off, TAM & Value-Added Services

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How do you approach clients and source contracts? Is it solely internal, or do you work with brokers? What are the different channels?

Even though this is a large-scale business with contracts like the one I'm working on, which is a couple hundred million dollars over time, much of this business is based on relationships and trust. The people we deal with need to trust the company, but ultimately, they're working with people. My network, for instance, includes connections with hundreds of companies, including the C-suite, senior executive teams, operations teams, and procurement teams. I have a robust network of people I've kept in contact with and built up over the years. They trust me and my reputation, knowing I won't position something in an RFP or negotiate a contract we can't service. Trust and relationships are crucial.

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How do you approach an RFP from a client outsourcing their logistics activities for the first time versus someone who already has a provider that is not GXO, and you're competing for it?

For companies that haven't outsourced their supply chain, the success rate is very low, less than 10%. It's a significant hurdle to overcome.

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Regarding the TAM question, you're suggesting that only 10% of logistics operations that haven't been outsourced could potentially be captured by players like GXO?

I don't see many insourced operations being outsourced for the first time. Out of the last 10 engagements I've been involved in, not one has been an insourced operation transitioning to outsourcing.

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