Of course, we’d be interested also in those. So I would say it’s about what’s out there in the market what we’re trying to accomplish at the time, and as Baris mentioned, overarching all of that it’s got to be delivering accretive benefits. It’s going to be in the interest of the company in the interest of our shareholders. That’s really how we look at the market.
Amit Mehrotra: Got it. Okay, very helpful, guys. Thank you. Appreciate it.
Operator: Thank you. Our next questions come from the line of Brian Ossenbeck with JPMorgan. Please proceed with your questions.
Brian Ossenbeck: Hey, thanks. Good morning. So maybe a question for you, Malcolm. Do you think this change we’ve seen more recently moving to more contracts that are outsourced for the first time? Is that durable on something we should expect will continue? Or do you think this is sort of like a lagged impact from several years of supply chain disruptions and now people are starting to really move forward with a tranche and there might be an air pocket next year or the year after? So just wanted to see how you thought through that and if there’s anything we should expect in the contracts in the structure? More tech, more efficiency, more automation, if those are going to change or if that more or less stays the same?
Malcolm Wilson: Hey, Brian, I think what we can see right now is a trend that’s going to continue. Remember that we called out this trend all the way back in, I think, 2020, even pre the spin of GXO that more and more companies were going to outsource their logistics. The reason we said that at the time and the reason it really still holds correct. It’s been reinforced, I think, through ’23 is the fact that, one, we’ve had several years of disruption, the pandemic, supply chain disruptions, manufacturing disruption. And then on top of that, we’ve had 1.5 years of really severe kind of inflationary pressure, interest rate pressure. That’s put a burden on so many organizations who don’t want to pass those incremental burdens on to the consumer.
So they look at how can they do things differently, how can they do things more efficiently. And the most organizations, it’s very daunting when the obvious solution probably involves bringing technology into the warehouse. They’re not generally equipped to do that. So it’s a logical step for them to look for an outsourced partner. And as the largest pure-play contract logistics company in the market with our reputation for delivering these big projects on time being a reliable partner. For us, it’s super. I mean, this is all playing into GXO’s wheelhouse. So we’re very excited about it. That trend is set to stay. It’s the very reason Baris just mentioned and Adrian, we’ve doubled down on our expenditure in terms of teams, deploying automation on our sales organization, I think it’s going to be a trend that’s going to service GXO very, very well in the future years.
Brian Ossenbeck: Thanks, Malcolm. Just a quick follow-up on the inventory dynamics and how they’ve been a bit more volatile than usual, and it sounds like you expect them to sort of normalize over time for the consumer-facing side. But how does the GXO direct offering with the multi-tenant warehouses, which expanded with Clipper as well. Is that something that’s sort of picking up some of that slack? Or is that not big enough to really make a dent in sort of these single-tenant facilities that can move up and down?
Malcolm Wilson: Yes, Brian, for us, it’s not a substantial enough amount of our capacity for it to make a real impact. But our GXO direct customers, just the same as pretty much all of the customers that we can think of, have not been immune to this last 12 months slower pace of consumer spending. So clearly, across all of our business, we’ve seen that. As I mentioned earlier, the vast majority of warehouses that we operate are fully back to back with our customers. So the smaller proportion that sit in our GXO direct world is really not — it’s not any material impact on our outlook.
Brian Ossenbeck: Okay, great. Thanks, Malcolm.
Operator: Ladies and gentlemen, that is all the time we have for questions today. I’d now like to hand the call back over to Malcolm Wilson for any closing remarks.
Malcolm Wilson: Yes. Thanks, Darryl. And again, as always, thanks for hosting our call today. We really appreciate it. ’23, it’s been a great year for GXO. So we’ve delivered huge free cash flows. That $1 billion of new business wins and towards the end, we are super excited about the acquisition of PFS, which is really performing incredibly well. We’re driving great service and efficient benefits for both our new and of course, our existing customers through deploying game-changing technologies right across all of our footprint. Looking forward, we’re excited by the future growth opportunities that we’ve been talking about on this call. We’re increasingly the partner of choice for the huge in-house portion of our market which is looking to more and more outsourced.
And we’re growing in a manner that’s delivering fantastic returns for our shareholders. So with that, we’d like to wish everybody a great rest of the day. Thanks so much for joining us on this call and your attendance and look forward to speaking to you again in the future.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time. Have a wonderful day.
