XPO Logistics Achieves Reduction in Damage Claims and Pursues Further Improvements
XPO Logistics has achieved a reduction in its damage claims ratio as a percentage of LTL (Less Than Truckload) revenue, which remained at 0.7% in Q2, showing improvement from the previous year. The company implemented internal upgrades, including the use of technology and incentive-based compensation initiatives, to drive these improvements. Incentive compensation plans were tied to service improvements, and a rating system was introduced where workers rate how well trailers are loaded and unloaded, providing valuable data for evaluation and coaching. These efforts resulted in the best damage claims per shipment in over seven years in June.
To further enhance their results, XPO is introducing more tools, such as a new airbag system, storage racks, and higher-quality straps. The company is also improving training and loading procedures for dockworkers to enhance service. XPO aims to achieve a damage claims ratio of 0.1% in the long term, recognizing that it may take several years to reach this goal.
IRS Commissioner Danny Werfel has ordered the immediate suspension of new claims for the employee retention credit (ERC), a pandemic-era small business tax break, due to a surge in questionable claims.