In the rapidly evolving logistics landscape, how can companies accurately gauge market trends, continuously improve operational efficiency, and ultimately win customer loyalty? XPO Logistics, an industry leader, is shaping the future of less-than-truckload (LTL) transportation and freight brokerage through visionary strategy and technological innovation.
Following the successful spin-off of GXO Logistics, XPO has intensified its focus on core operations—LTL and freight brokerage. To gain insight into XPO's strategic direction and market outlook, Logistics Management editor Jeff Berman interviewed Chief Strategy Officer Matt Fassler about critical topics including the LTL market, brokerage operations, and preparations for the 2021 peak season.
LTL Market: Triple Growth Drivers
"XPO ranks among the largest and most profitable LTL providers in the U.S. We see the market benefiting from three overarching growth drivers," Fassler stated.
- Transportation Outsourcing: The industry-wide shift toward outsourcing continues amid tight capacity. Enhanced shipment visibility through technology drives growth for both brokerage and LTL operations.
- Industrial Recovery: While consumer shipments grow, LTL remains closely tied to industrial activity. After pre-pandemic stagnation and COVID-era declines, the sector shows robust recovery expected to continue through 2022.
- E-Commerce Acceleration: Rising consumer expectations for rapid delivery and compressed supply chains increase LTL demand. XPO responds by positioning smaller shipments closer to end markets.
Technology Transforming LTL Operations
"We're making substantial technology investments across our LTL business and entire organization," Fassler emphasized, highlighting initiatives that enhance pricing strategy, customer value, and network efficiency.
- Intelligent Pricing: Balancing financial objectives, service requirements, and network fluidity through data-driven pricing models.
- Network Optimization: Automated loading tools improve trailer utilization while dynamic routing adjusts pickups and deliveries in real-time based on weather, traffic, and order changes.
"Even with drivers en route, we can seamlessly integrate new pickups by dynamically adjusting plans—this digital visibility transforms network responsiveness," Fassler explained.
E-Commerce Adaptation
The pandemic accelerated retail's digital transformation, with consumer spending growth straining supply chains. "We anticipated this shift and positioned ourselves to capitalize early," Fassler noted.
Freight Brokerage: Technology Meets Talent
Fassler described brokerage excellence as creating value through exceptional personnel and proprietary technology—particularly XPO Connect, their automated digital freight marketplace.
"Ninety-nine percent of orders incorporate some automation, with 60% of quotes generated digitally," he said. The platform streamlines operations through intuitive interfaces while empowering employees to deliver superior service.
"Our pricing intelligence, carrier relationships, and technology help secure capacity in constrained markets. We innovate continuously to maintain confidence in any environment."
Outsourcing Trends Validate Strategy
Two decades of growing transportation outsourcing—especially in truck brokerage—demonstrate customers voting with their wallets. "Despite hundreds of competitors, our asset-light technology leadership provides significant runway," Fassler asserted.
Preparing for Peak Season
Regarding the 2021 peak season, Fassler expressed optimism while acknowledging labor challenges. "We're advising customers to ship early and applying lessons from 2020, when extended e-commerce demand redefined traditional cycles."
As consumer behavior continues evolving, XPO stands ready to meet fluctuating demand through service excellence and technological advantage.