As service businesses continue to deal with labor shortages, XPO Logistics Inc XPO is finding unique ways to bring people on board.
Navigating Labor Shortages: The transportation industry has been experiencing driver shortages, but XPO Logistics has developed solutions to combat the labor issues, XPO Logistics chief strategy officer Matt Fassler said Tuesday on Benzinga's YouTube show "Power Hour."
The best solution for the company has been its driver schools, Fassler told Benzinga.
"We operate one of the largest less-than-truckload transportation businesses in the U.S. This year, the schools that we operate are going to graduate roughly 1,000 drivers."
He described the XPO Logistics driver schools as a self-help solution for the company and noted that he believes XPO Logistics is "getting past the peak of that shortage challenge."
Supply Chain Impact: The company has also been affected by supply chain issues, which Fassler attributes to the strength of the recovery in the U.S. However, XPO logistics isn't being negatively impacted, rather it acts as the solution for supply chain problems, he said.
"At a moment in time when supply chains are challenged, people really want capacity, people really want visibility and they look for partners who have the technology to help them achieve those solutions."
XPO Logistics' large less-than-truckload business offers capacity, Fassler said: "If you don't run your own fleet and you need to move your goods from point A to point B, we help you find the truck at the best possible price."
XPO Logistics then offers visibility by helping its customers track the truck once it's on its way, he explained.
Rising Fuel Costs? Fassler told Benzinga that XPO Logistics is able to manage rising fuel costs by passing along the expense.
"That is more or less a pass-through for us so we don't take the hit when fuel prices go up. Obviously, it raises the costs of doing business for everyone but that's not a problem for XPO."
XPO Logistics is set to announce its third-quarter financial results after the market closes on Nov. 2.
See the full interview here:
XPO Price Action: XPO Logistics has traded as high as $153.45 and as low as $75.29 over a 52-week period.
The stock closed down 1.81% at $75.43 on Tuesday.
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