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Thread: XPO Logistics to Shutter Rialto Warehouse After Losing Amazon’s Business

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    Default XPO Logistics to Shutter Rialto Warehouse After Losing Amazon’s Business

    XPO Logistics will close its warehouse in Rialto and lay off 126 people who work there next month, after one of its clients decided to cease local operations. The company, which is one of the world’s largest trucking and distribution companies, posted the layoffs to California’s WARN Act website, which lists all major layoffs statewide.

    XPO declined to disclose the name of the Rialto client, and the company’s CEO Brad Jacobs warned in a recent earnings call that this year would be considerably weaker because its largest customer was canceling about two-thirds of its business. He also did not identify the customer.

    However, multiple sources have named Amazon as XPO’s largest customer. Industry experts said the move is part of the Amazon’s decision to run its own delivery service.

    “We believe the shipper that is paring down its parcel injection, brokerage, last mile, and logistics activity with XPO is Amazon,” J.P. Morgan analyst Brian Ossenbeck told Reuters.

    XPO is also closing distribution centers in Maryland and Kansas, where Amazon also is the customer, according to Reuters.
    https://www.connect.media/xpo-logist...azon-business/
    fedexnuno likes this.

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    Default Re: XPO Logistics to Shutter Rialto Warehouse After Losing Amazon’s Business

    https://www.freightwaves.com/news/lt...79175252108775

    It seems odd that arguably the world’s most powerful company would get bent out of shape over one executive’s departure. But Kenneth Wagers was not just any executive, and he didn’t go to just any company.

    At Amazon.com, Inc. (NASDAQ:AMZN), Wagers, known to nearly everyone as “Kenny,” ran a far-reaching portfolio. As finance head of the company’s global transportation business, Wagers headed up the financial operations for last-mile, middle-mile, Amazon China, air and ocean operations, the “Amazon Fresh” grocery delivery business, and the “Prime Now” same-day operation. Given Amazon’s profound transition from simple e-tailing to a complex model emphasizing transportation and logistics, it would be hard to imagine an Amazon executive whose skills and knowledge would be in more demand by transport and logistics folks.

    To complicate matters, Wagers was wooed from Amazon by transport and logistics giant XPO Logistics, Inc. (NYSE:XPO), which he joined last April as its chief operating officer, adding the title of interim head of its less-than-truckload unit in June. XPO had created a service called “XPO Direct,” which integrates contract logistics, middle and last-mile transportation into an end-to-end network aimed at businesses that don’t want to manage the process themselves. The service resembles Amazon’s “Fulfillment by Amazon” (FBA) operation, where the company provides merchants with an online storefront, warehousing, fulfillment, distribution and delivery. FBA accounts for more than half of Amazon’s sales.

    As it happens, Amazon is a user of XPO Direct, presumably for heavier consignments. XPO does not handle parcels, which still accounts for the vast majority of Amazon’s traffic.
    fedexnuno likes this.

 

 

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