XPO Logistics, one of the ten largest transport and logistics companies in the world, drives its business in Spain. The multinational, which works with partners such as Inditex, H&M, Primark and Carrefour, has created a new region that encompasses the transport businesses of Spain, Portugal, Italy and Morocco. This business unit will be managed from Spain by the Italian Massimo Marsili, who has just been appointed the company’s new general director of Transport for southern Europe and Morocco.
“With this movement, we seek to obtain important synergies and maximize opportunities by using the flows that can be generated between these four countries,” he explains to Five days Marsili, who is especially confident in being able to use in Italy all the learning they have experienced in Spain in last-mile deliveries related to electronic commerce. “Spain has grown a lot in ecommerce and it is already ranked 24th worldwide, while Italy advances more slowly and is in 29th place. This opens up a huge opportunity for us, ”he says.
The American multinational had a turnover of 16,300 million dollars (about 13,600 million euros) last year at a global level; 6,072 million euros in Europe and 766 million in Spain, 0.8% more than in 2019 “despite the pandemic”, thanks to the pull of electronic commerce. The company has more than 6,000 employees in Spain, although it reaches peaks of up to 10,000 for campaigns such as Black Friday and Christmas. Spain is its fourth market in terms of turnover, after the United States, the United Kingdom and France.
Marsili says that daily last-mile deliveries in Spain have tripled in the last year, from 1,500 to 4,500, which has led them to increase their delivery fleet by 40%, to more than 300 vehicles in the Iberian Peninsula. .
The executive clarifies that they have focused on home deliveries of bulky goods such as televisions, kitchens, refrigerators or garden furniture. XPO Logistics has recently signed agreements with Ikea and MediaMarkt to provide last-mile services on their bulky products. “We deliver them using the 60 transportation and distribution centers that we have in the Peninsula, of which about 50 are in Spain,” continues Marsili, who highlights how important the capillarity of the company’s network of logistics centers is for its customers. , currently 6,000 in Spain, including most of the large retailers.
The manager also highlights that they have been able to develop a last-mile product thanks to their leadership in Spain in paletería. “We handle 20,000 pallets every day; that is, we deliver or collect a pallet every two seconds ”. “And more retailers they choose us for their deliveries of large products because we give them added value: we assemble the goods at the end customer’s home, for which we have specialized subcontracted teams ”, he remarks.
The manager does not give precise data on how his business will evolve in Spain this year, but he does assure that the vaccination will allow the economy to reactivate “and that will help boost our business in the four countries of the new region” .
These new perspectives have led the company to plan the opening of two new logistics centers in this first semester, one that they will use for international transport and which will be the hub in order to cross-docking largest company in the country, and another, located near Madrid capital, for the last mile. The company also plans to open two logistics centers to ecommerce before July, which will add a total of 80,000 m2 and create 600 new jobs.
These will be added to others that the XPO logistics unit is already operating, for example the Marchamalo center (Guadalajara), with 108,000 m2 from where it provides service to Inditex; Illescas (Toledo), with 44,000 m2, basically dedicated to providing service to H&M or the Torija center (Guadalajara), with 32,000 m2 and from where it serves Primark.
Marsili believes that the pandemic has put the company to the test and has led them to be better prepared to help their customers: “This crisis has forced us to be more flexible, digitize our business more and optimize our routes more and avoid kilometers in empty, “he says.
The manager also points out that the decision of the corporation to spin off XPO’s logistics business (which will be called GXO Logistics and will be listed independently on the Stock Exchange) will not have any impact in Spain, where each of the units already operates separately. . “What is sought with this decision is that there are two very specialized companies, one in transport and the other in logistics and that each one focuses on its area to maximize its business.
The operation is scheduled to take place in the second half of this year and will seek to take advantage of the structural tailwinds that the logistics sector is experiencing, thanks to the growth of electronic commerce and omnichannel retail distribution. Also the rapidly increasing demand for automation and digital capabilities from customers and a shift towards outsourcing supply chain services.
Massimo Marsili says that XPO has had to “pure genius”During the pandemic and technology is proving to be a key element. The firm, which invests around $ 500 million a year in technology, is testing the use of robots in its warehouses in Spain, but in the UK they have just built a warehouse with Nestlé with sophisticated robotics, automatic sorting systems and smart analytics to offer a faster and more efficient distribution.
Also in their logistics unit they have introduced RFID technology in several centers in Spain. Employee gloves have a built-in reader that facilitates the reading of codes, transmits automatic information to computers, improves product traceability and ergonomics at workstations.
Marsili also highlights that they have developed a new shipment communication system that allows the end customer to decide when the product is delivered, where and, “the most important thing”, he says, “can see the registration of the vehicle that is going to make the delivery and the driver’s file with his photo so that he knows which person is going to give him the product. And all by WhatsApp. In addition, the customer should not touch anything, since he signs the delivery on his own mobile “.