GXO, DHL and Outsourced Logistics: Cost-Plus vs Fixed-Variable Model
Former Director at Nike
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Former Director at Nike
Interview Transcript
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What do you mean by "different infrastructure in place"?
In wholesale, you can manage with one heavily centralized location that ships full truckloads to a customer. In digital, you're dealing primarily with last-mile deliveries and less-than-truckload shipments. That's when the fulfillment center and distribution center concept comes into play. For us, once shipments reach regional areas, we hand them off to FedEx or UPS for the final last-mile delivery. The more recent buildings that are 3PL operated are decentralized.
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