Our guests on the show this week were Malcolm Wilson and Mark Manduca, the respective CEO and CIO of GXO Logistics. GXO is a $7 billion market cap company that provides logistics services to companies around the world. The company was recently spun off from XPO Logistics and now has the freedom to invest aggressively to help its customers with supply chain and warehouse automation. COVID, supply chain disruptions and rising labor rates around the world have made many companies start to think deeply about their supply chains and to consider outsourcing and automation. As such, given how well GXO would appear to be positioned for the future, I was really looking forward to talking to Malcolm and Mark about:
- The rationale for the spin and what having more autonomy will allow GXO to do;
- The structural tailwinds that are behind the company as it relates to e-commerce, outsourcing and warehouse automation;
- Why GXO is definitely not a commoditized warehouse company;
- Why the company is a buying Clipper; and
- The importance of return on capital when it comes to capital allocation
*For full disclosure, Cove Street is NOT a GXO shareholder.
Please enjoy the interview at the following sites:
YouTube: https://www.youtube.com/watch?v=CSzTAUKf03M
Spotify: https://open.spotify.com/episode/1C1rTQiQiqOaTFvBDLdhy1
Apple: https://podcasts.apple.com/us/podcast/riding-the-wave-of-warehouse-outsourcing/id1579124518?i=1000558832538
Podbean: https://compounders.podbean.com/e/riding-the-wave-of-warehouse-outsourcing-and-automation-with-malcolm-wilson-ceo-and-mark-manduca-cio-of-gxo-logistics-nyse-gxo/
As always, if you have any comments, feedback, or guest recommendations, please contact us at podcast@covestreetcapital.com. You can also follow the podcast on Twitter @ https://twitter.com/CompoundersPod.
If you missed our last Compounders episode with Viemed Healthcare CEO Casey Hoyt, you can view it here.
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