GXO Logistics to Buy Clipper Logistics, Solidifying Supply-Chain Management

GXO Logistics has reached an agreement to buy Clipper Logistics for £943 million ($1.28 billion), Bloomberg reported Sunday (Feb. 20).

This would combine two global supply-chain management giants.

Clipper is in charge of logistics for several major European retailers like Asda and Asos.

GXO also operates hundreds of warehouses around the world, and has said the purchase would add more eCommerce fulfillment customers and provide expertise in technology returns, bolstering the global reach in countries like Germany.

In addition, the cost savings from the combined companies would occur within two years.

The report also made note that supply chain management has been a “key focus” for international retailers and logistics partners. There have been bottlenecks from the pandemic, which have rolled into labor issues, port congestion and container shortages.

Read more: GXO and Saks Debut D2C eCommerce Platform

GXO also recently announced a partnership with Saks to debut a GXO eFulfillment center in Middletown, Pennsylvania.

It has started to ship out Saks’ luxury fashion apparel and goods, which will go to customers around the U.S. via shared space distribution that GXO has provided.

Na Li, senior vice president of Saks logistics and shipping, said with GXO, “we are in an even better position to meet the higher demand of our business while providing fast and flawless shipping to customers throughout the peak holiday season.”

GXO Direct has 41 U.S. locations, which limits shipping miles and carbon dioxide emissions by cutting down expedited air transportation, which is six times more carbon-intensive than road transport.

The GXO eFulfillment center in Middletown makes use of collaborative robots and other technologies, aiming to optimize efficiency, accuracy and the employee experience.

“Our new Middletown eFulfillment center allows us to respond to Saks’ eCommerce needs with speed and agility, which is particularly important at peak times such as the run-up to the holidays,” said Bill Fraine, GXO’s chief commercial officer, according to the report.