Kelron’s built up strong relationships in the industry over 20 years. They serve more than a 1,000 customers, with about 2,500 carriers. With the addition of Kelron’s relationships and lane history, there should be a positive effect on the whole XPO system, both in terms of pricing and in finding trucks. We’re giving the Kelron team access to our carrier capacity in Charlotte, and moving them onto our IT system. We expect this to create efficiencies that will pay off as we add sales people to each of their locations.This is the same model we implemented with Continental Freight Services, which we purchased in May. The Continental team has been a great addition to XPO. Continental has already integrated on to our IT and accesses our carrier capacity on a daily basis. This is working exactly like we anticipated. For example about a third of the loads originating at the Continental branches are being covered through our operation center in Charlotte, the majority of these loads are ones that Continental would not have been able to cover before the acquisition, so it’s incremental business. We expect to continue to see a significant increase in the number of continental’s loads flowing through Charlotte from continental in the third quarter.
XPO Logistics' CEO Discusses Q2 2012 Results - Earnings Call Transcript
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