CHARLOTTE, N.C. – RXO has become the official full-truckload and less-than-truckload freight provider for Enterprise Purchasing Group, a purchasing organization that negotiates supplier terms for small and midsize businesses.
The partnership gives participating companies access to pre-negotiated RXO pricing and the Charlotte logistics company’s carrier network, which includes more than 125,000 vetted carriers and about 1.7 million trucks. For shipments that do not require an entire trailer, RXO says its less-than-truckload network includes more than 125 providers.
The arrangement is aimed at a familiar problem for smaller shippers: individually, they may lack the freight volume needed to secure the pricing, capacity and technology available to much larger companies. Enterprise Purchasing Group says it combines billions of dollars in purchasing activity across its membership to negotiate enterprise-level terms. Under the agreement, it will be the sole logistics group purchasing organization offering RXO’s services.
Members also will be able to use RXO Connect to quote, book and track shipments. The platform is designed to provide shipment visibility and consolidate freight activity that might otherwise be managed across multiple carriers and systems.
RXO freight brokerage President Lou Amo said in the Sept. 3 partnership announcement that the companies intend to help members reduce transportation costs and improve efficiency. Enterprise Purchasing Group CEO Scott Campbell said the deal adds a national transportation provider to the organization’s negotiated supplier portfolio.
The companies did not disclose financial terms, the agreement’s duration, the number of participating members or expected freight volume. They also announced no hiring, capital investment or revenue target tied to the partnership. Claims about lower pricing and improved service reflect the companies’ expectations; neither party provided operating results from the arrangement.
RXO is headquartered in Charlotte and provides technology-enabled freight transportation services. The partnership broadens the sales channel for its truckload brokerage and less-than-truckload offerings without requiring smaller businesses to negotiate separate terms on their own.
Additional information is available from Enterprise Purchasing Group. Independent coverage was published by Supply Chain Digital and Investing.com.
Sources: Sept. 3 partnership announcement: https://rxo.com/news/enterprise-purchasing-group-and-rxo-launch-new-strategic-partnership/ Enterprise Purchasing Group: https://www.enterprisepurchasing.com/ Supply Chain Digital: https://supplychaindigital.com/news/rxo-partners-with-epg-to-boost-freight-efficiency Investing.com: https://www.investing.com/news/company-news/rxo-partners-with-enterprise-purchasing-group-for-freight-services-93CH-4887896 Image credit: Photo and logo courtesy of RXO. Louis Amo, president of truck brokerage.