QXO is accelerating efforts to become a digital-first building-products distributor under chairman and CEO Brad Jacobs, who outlined a sweeping transformation plan following the company’s acquisition of Beacon earlier this year.
In a series of investor Q&A sessions, Jacobs described how QXO is rebuilding its technology foundation, streamlining its structure, and embedding data-driven processes to position the company for long-term growth, with a stated goal of reaching $50 billion in revenue.
Jacobs said QXO launched its transformation program immediately after closing the Beacon deal, targeting every part of the business — sales, pricing, procurement, logistics, and organizational design. One of the first steps was rebranding Beacon’s branches, fleet, ecommerce site, and mobile app under the QXO name, while cutting corporate layers from nine to four to speed decision-making and improve accountability. The company also opened a national “Win Room” digital call center to reengage dormant accounts and pursue new customers.
QXO’s digital overhaul
A major focus is overhauling QXO’s pricing and analytics systems. The company is deploying a centralized digital pricing platform with
- Stricter override controls.
- Real-time contribution-margin dashboards.
- New compensation plans that tie pay to both sales and profitability.
Jacobs said QXO is embedding artificial intelligence across its operations, from quoting and routing to machine-learning demand forecasting. The company is also upgrading its enterprise resource planning, warehouse and transportation management systems, and business intelligence tools to give employees and customers real-time visibility into orders, inventory, and logistics.
“We’re building best-in-class platforms across the stack, from CRM and pricing engines to ecommerce and BI tools,” Jacobs said. He added that improving inventory accuracy and product availability will be critical to gaining market share. “Four percent of SKUs drive about 80% of sales, and those must always be in stock.”
Jacobs said QXO will stay disciplined on acquisitions, focusing on targets it can improve operationally while avoiding overbidding. About 80% of the company’s revenue comes from the repair and remodel segment, which he described as more resilient than new construction. The company plans to concentrate on the U.S. market, with Canada as a secondary priority and Europe pursued selectively.
“We’ve built companies in industries where we weren’t the biggest player but created enormous shareholder value by staying disciplined,” Jacobs said. “That’s exactly what we’ll do here.”
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