QXO Chairman and CEO Brad Jacobs recently shared details on the significant changes implemented since the acquisition of Beacon. The company has undergone a comprehensive transformation program, with various initiatives aimed at driving growth and operational efficiency.
One of the notable changes involves flattening the organizational structure from nine layers to four, enhancing decision-making speed and accountability. Additionally, QXO has established a national "win room" call center to reactivate dormant accounts and capture new customers, reflecting a proactive approach to customer engagement.
Furthermore, the company has accelerated the rollout of a centralized digital pricing platform and implemented stricter pricing override controls to protect against leakage. This addresses approximately $200 million of identified undisciplined discounting, demonstrating a focus on preserving margins.
In terms of salesforce reshaping, QXO has redefined sales roles with clear accountability and growth targets, introducing incentives for new accounts and margin improvement. The company has also invested in hiring "hunters" to win new customers and reactivate dormant accounts.
Regarding headcount, while the total number has remained relatively unchanged, approximately 250 mid-level and senior roles were removed, with resources being added in frontline sales, truck drivers, warehouse associates, and executives in procurement and tech.
QXO has made significant strides in improving inventory management, with a focus on enhancing inventory availability and introducing scanning, slotting, and placement discipline in warehouses.
On the financial front, Jacobs emphasized QXO's disciplined approach to acquisitions and highlighted the company's focus on intrinsic value and responsible capital allocation.
It's worth noting that QXO's growth prospects have garnered attention, with analysts expecting the company to grow EBITDA at a 34% CAGR between 2025 and 2030, potentially influencing the company's trading multiple.
The market has reacted to these announcements by moving the company's shares -1.0% to a price of $21.265. If you want to know more, read the company's complete 8-K report here.
