GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, has unveiled a strategic partnership with Blue Yonder, a leading provider of intelligent supply chain software. The collaboration aims to revolutionize GXO Direct, its shared warehousing solution in the United States, through the deployment of an advanced end-to-end supply chain software solution.
Eduardo Pelleissone, President of GXO’s Americas and Asia Pacific division, expressed excitement about the partnership, saying, “By leveraging Blue Yonder’s solutions, we’ll enable customers to add features and customized capabilities on an open WMS platform. Customers will now have an agile and cost-effective order management solution with real-time visibility of inventory and orders across all sites. Customers will also have access to value-added services, such as kitting and assembly, to optimize their time and cost to serve. This strengthens our position as a shared warehousing leader as we expand GXO Direct globally.”
GXO Direct is renowned for its innovative, flexible, and cost-effective warehousing solution, providing expertise, technology, capacity, and resources on demand. In North America, GXO Direct operates a network of 14 strategically located hubs comprising more than a hundred sites across the U.S. and Canada. This network enhances operational efficiency for all warehousing services, including returns management, while also positioning goods closer to the end consumer, facilitating one-day nationwide delivery.
The new software solutions from Blue Yonder are expected to significantly expedite customer onboarding, startups, and tech integration. Moreover, they will harness real-time data to enhance inventory management, further elevating the capabilities of GXO Direct.
Steve Lewis, U.S. Division President of GXO Direct, emphasized the importance of flexibility in today’s business landscape. “We’re excited to work with Blue Yonder to enhance our warehouse capabilities and deliver even faster speed-to-market for our customers across the GXO Direct network in the U.S. Today, businesses require more flexibility than ever. To meet their needs, we are deploying Blue Yonder’s SaaS-based supply chain execution solutions. We’re seamlessly onboarding new customers twice as fast and giving them greater insight into operations, better forecasting with real-time data, and updates on order fulfillment.”
GXO is set to implement a range of Blue Yonder solutions to support GXO Direct in the U.S., including Warehouse Management System (WMS), Labor Management, Order Management (OMS), Warehouse Execution System (WES) featuring Robotics Hub and Warehouse Tasking, Billing Management, and more.
Mark Nordick, Senior Vice President and General Manager of Global Logistics Service Providers at Blue Yonder, expressed enthusiasm about the collaboration, stating, “We’re excited to work with GXO since they are known for helping businesses around the world realize the cost-saving benefits of flexible and automated warehouse solutions. With Blue Yonder technology, GXO will be able to onboard new customers in a matter of weeks and help them grow quickly.”
Since its introduction in the U.S. in 2018, GXO Direct has experienced exponential growth, consistently expanding its network of fulfillment centers. GXO Direct’s value proposition lies in its ability to boost scalability, flexibility, and end-to-end visibility through technology. It also transforms reverse logistics from a cost center into a profit center. Additionally, the strategic location of GXO Direct’s warehouses near major metropolitan markets enhances operational efficiency, enabling one-day delivery for brands, reducing transportation costs, and contributing to reduced carbon emissions from shipping. The success in the U.S. market has prompted GXO to expand GXO Direct into the United Kingdom, with plans for further expansion across Europe.
This partnership marks a significant step toward redefining the logistics industry’s approach to supply chain management, with GXO Logistics and Blue Yonder at the forefront of innovation.