Where Is QXO Headed? Jacobs Reveals Some Actions Under Way
- Craig Webb
- 3 hours ago
- 1 min read
Where is QXO headed? In a QXO-edited summary of remarks to analysts issued Sept. 11, Chairman and CEO Brad Jacobs said:
"Undisciplined discounting" was costing QXO $200 million in price leakage. A digital pricing platform has replaced manual overrides.
About 250 mid-level and senior positions have been eliminated and about the same number of new front line sales, truck drivers, and procurement people have been hired.
4% of QXO's SKUs account for about 80% of sales, but the company's fastest-moving items often were out of stock. "Our inventory availability has dramatically improved."
Procurement authority has been centralized. The top 20 vendors account for 70% of spend and QXO is "eliminating thousands of fragmented vendor agreements that caused leakage. We're now using bots and other automation for some of our procurement negotiations."
"We plan to win market share not by discounting price but by being in stock, quoting quickly, delivering on time and in full, and invoicing accurately."
For all of Jacobs' comments, see the transcript.