2023-04-10 21:40:36 ET
Summary
- Companies operating in the logistics sector were hard hit by Covid disruptions.
- As a result, they started investing in automation to make operations more efficient, with this thesis focusing on two of them GXO Logistics and Ryder System.
- This increase in efficiency is illustrated by the margin gains for both in a period where inflation has soared.
- I also highlight the difficulties in a high-inflation environment as well as the high debt levels since investing in robotics is far from being capital-light.
- Ryder is better as it is able to squeeze more cash out of operations after accounting for capital expenses.
For further details see:
GXO Logistics And Ryder: Increasing Supply Chain Efficiency Through Automation