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IP Interview
Published December 27, 2024

GXO, DHL and Outsourced Logistics: Cost-Plus vs Fixed-Variable Model

Executive Bio

Former Director at Nike

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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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.

This is a snippet of the transcript.to get full access.

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