Being decisive in tough times

IF YOU are outperforming the macro now, you are doing a good job. Dan Myers, agrees.

“When I speak to customers and industry peers, everyone is working hard, but quite often it is working hard to stand still.

“Many business leaders expect 2026 to be flat, with many apprehensive regarding decisions made in the budget. Many are still digesting the National Insurance changes from last year, but these are economy-wide challenges; they affect everybody.”

Dan feels the companies that will succeed are those that are not too hesitant and map out a clear direction of travel, while remaining adaptable and focused on the end goal.

“Change has always been part of the human story, but it has never happened at a faster pace than now. The future is less certain, and planning long-term is more difficult than ever, so you need to be able to pivot and adapt to changing circumstances. Those who can do this successfully will prosper.”

XPO Logistics is seeing some customers analysing their network models and asking whether they are future-fit.

Dan says they recognise that while the 3PL sector is generally good at sweating assets and operating efficiently, you now need something more transformational.

“The expertise and support we are bringing to customers on network design and technology is super exciting and intellectually challenging, and it is where we are dialling up the value we can create – together.”

For Dan, there’s no one-size-fits-all when it comes to automation. He sees the role of a 3PL as offering unbiased, expert guidance to help customers find the right fit among a growing array of technology options.

“You need to make sure automation fits the customer’s requirements. You can design it around the profile or to accommodate evolution. You need to anticipate any potential changes and ensure the solution can adapt. This is where the challenge lies, as we spoke about earlier, predictability is one thing we don’t have a lot of – this is where we can help.”

These are significant investments, and end users need to think carefully about the longevity of the solutions.

“A key point for us is we want to be actively involved, start to finish. Defining and understanding every single nuance of the customer’s business, engaged in the detailed scoping and design of the requirements. Our role is to act as an agent, an extension of the customer, when coordinating the activities with the automation provider.

“In my view, automation providers understand technical elements incredibly well, but that doesn’t necessarily translate to a comprehensive understanding of the customer’s logistics needs. There needs to be engagement with the right skills and experience all the way through the process.”

Dan also sees the uncertain market conditions in 2026 favouring entry-level automation solutions.

“They are quicker to install, modular in nature and lower risk. We continue to see a trend towards less expensive automation, particularly in specific use cases, for example, in B2C activity.”

Ultimately, Dan sees this trend culminating in automation on a pay-per-movement, automation-as-a-service basis.

He explains: “Automaton will cease to be a capital project and will become automation-as-a-service. These providers aim to create models with recurring cash flow. Customers are looking to allocate and deploy capital expenditure more effectively, so they will move to a subscription model.

“We’ve seen it in other industries. The TotalCare ‘power by the hour’ service offered by Rolls-Royce for its aerospace business, for example. It makes sense that the airlines pay as the engine supports their revenue generation from transporting passengers.”

It is a similar story with software. Digitalisation continues to sweep across logistics, and Dan sees XPO’s position adding value.

“We are in the industry; we live and breathe it every day. We are not a software house that is on the outside looking in. I am a big believer in developing and building our own tech rather than taking products off the shelf. For us, the ability to bring systems together, combining their potential into a unique supply chain insights platform with the ability to tailor easily is key,” says Dan.

XPO builds a significant portion of its own software, including process automation tools to streamline back-office activities. The idea is not to take heads out but to allow the firm to scale more easily, freeing XPO’s people to create value and engage in more fulfilling activities.

Dan says: “We know having people conduct low-level repetitive tasks is very low value for customers, our people and XPO.

“We are incredibly invested in AI, which we have deployed in planning activities, and there is a considerable way to go with it. We’re leveraging it every day where AI can help us, help our customers.

“AI is an everyday tool for me, I’ve become incredibly aware of how it can support in many tasks, improving both quality and productivity. I encourage our teams to use it too, it’s an experiment, and it’s exciting watching how quickly it learns our business and how we relate to clients, and critically how it can apply this learning.”

Embracing change runs deep for Dan, though XPO Logistics has learned some tough lessons over the years. An immensely successful firm in the 1990s as Swift Service, the firm lost its way primarily due to its reluctance to embrace change.

Dan says, “You can’t go backwards. We’re not Marty McFly (Back to the Future – Dan loves a film reference!). We’ve learned from the past, but we’ve not forgotten it. Now, the culture in the business is that change is positive, it’s part of our DNA.

“Recent wins and the agility of the team illustrate this. We signed an agreement with a client on Tuesday, with no warehouse, people, or systems in place. By Friday, we were receiving products into a new warehouse for the client. Even I was impressed with the application and speed of the team – and I take some impressing.”

Further proof is XPO Logistics’ Highly Commended win in the Warehousing Business of the Year category at the recent Logistics UK awards.

With all that in mind, XPO expects to thrive in an admittedly tough market, as Dan says: “We get out of bed every day to make a difference.”