Who Optimizes SG&A Costs Better? XPO Logistics, Inc. or ZTO Express (Cayman) Inc.

Optimizing SG&A Costs: A Tale of Two Logistics Giants

In the competitive world of logistics, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, XPO Logistics, Inc. and ZTO Express (Cayman) Inc. have taken different paths in optimizing these costs. From 2014 to 2023, XPO Logistics saw a significant reduction in SG&A expenses, dropping from 42% of their 2014 expenses to just 4% in 2023. This reflects a strategic shift towards leaner operations. In contrast, ZTO Express experienced a steady increase, with SG&A costs rising by 354% over the same period, indicating aggressive expansion and investment in infrastructure. This divergence highlights the contrasting strategies of these two industry leaders. While XPO focuses on efficiency, ZTO is investing heavily in growth. Understanding these trends provides valuable insights into the logistics sector's evolving landscape.