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XPO Logistics blog writeup

The transport sector has been significantly impacted by the recent disruptions in global supply chains. However, there is positive news amidst the uncertainty. XPO Logistics, a top logistics provider, has been selected by Japanese company Shiseido Company, Limited to provide omnichannel logistics throughout the UK. Shiseido is the largest cosmetic company in Japan and the 5th largest in the world. It markets well-known beauty brands such as bareMinerals, Issey Miyake, NARS, Dolce&Gabbana Beauty, Laura Mercier, SHISEIDO, Narciso Rodriguez, Elie Saab, and Clé de Peau Beauté.

The contract won by XPO covers Shiseido’s business-to-business replenishment as well as e-commerce fulfillment of its beauty and personal care brands. XPO has an 80,000-square-foot warehouse in Derby, UK from where it will manage Shiseido’s logistics. This warehouse is slated to expand to 100,000 square feet. The Derby distribution facility also happens to be a green facility that aligns with Shiseido’s sustainability commitments.

According to Gavin Williams, managing director supply chain at XPO Logistics for UK & Ireland, “We are delighted to welcome Shiseido and their prestigious portfolio of brands. This partnership underscores our e-commerce expertise in the cosmetics sector. Our solutions for Shiseido are customized to support their channel strategy and continuously improve the customer experience.”

Beauty and cosmetic products have had a significant fall in sales due to retail store closures and reduced footfalls. Many of the top brands have instead focused aggressively on e-commerce to sustain sales. A lot of the marketing campaigns are also being conducted online. In such an environment, having a strong logistics partner will enable Shiseido to ramp up its e-commerce operations quickly while complying with health and safety guidelines.

For XPO, the contract win provides a boost and further reinforces its resilience to withstand the pandemic. Shares of XPO Logistics, Inc. closed at $63.81 on May 13, down 4.39% for the month.


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