As the logistics services industry becomes increasingly competitive it is inevitable that more companies operating in the sector will seek to grow through mergers and acquisitions.
By merging with or buying a controlling stake in a rival, a logistics specialist will expect to benefit from economies of scale and synergies across its expanded business and, of course, enjoy an increased market share.
But, for the clients of any company that has been absorbed either through merger or acquisition into the corporate framework of a bigger entity, the news that a trusted – often formerly independent – supplier is now part of a large corporation, will understandably be a cause of some anxiety.
Many people believe that a smaller 3PL is far better equipped to respond flexibly to their changing requirements than the biggest operators and, from conversations I have had, there is concern that this aspect of a relationship can be lost when a 3PL is taken over by, or merges with, a bigger player.
It is inevitable that if the quality of service and levels of customer care suffer following a 3PL’s merger or acquisition, the company’s clients will look to switch supplier. Indeed, across all industries, supplier acquisition is one of the most common triggers for terminating a business relationship.
Of course, exiting a supplier relationship can sometimes be less than straightforward and it is always a good idea to seek expert legal advice before making the split. Some contracts may contain termination penalties but these may be minimal compared to the damage that can be done to a business if the
Mar 18, 2019 Comments Off on Horyong picks Strenx steel for tallest truck-mounted aerial lifts & ladder cars
Mar 18, 2019 Comments Off on UKWA Conference 2019 – “e-Commerce has put retailers on “the road to less and less profit”
Mar 10, 2019 Comments Off on Platinum Deloitte Award for Combilift/Aisle-Master
Mar 10, 2019 Comments Off on Narrow Aisle & Flexi going for growth with new owners
Nov 13, 2018 Comments Off on HOIST TROLLEYS PROVIDE SAFE LOAD MOVEMENT
Oct 29, 2018 Comments Off on Yale expands reach truck range with tilting mast models
Mar 10, 2019 Comments Off on Platinum Deloitte Award for Combilift/Aisle-MasterCombilift/Aisle-Master has received the Deloitte Platinum Best Managed Company award for the 7th consecutive year. Combilift was awarded this prestigious award following a detailed...
Feb 09, 2019 Comments Off on UKWA National Conference 2019
Oct 29, 2018 Comments Off on Imperial Logistics to operate new Volkswagen Group packaging centre
Sep 16, 2018 Comments Off on Hyster Lift trucks shine with Marble movements
Jul 22, 2018 Comments Off on International companies confirm their place at IMHX 2019
Mar 02, 2019 Comments Off on Flooring service with JCB TeletrukThe risk of a delivery van’s floor suffering significant and costly damage during the loading process can be eliminated with the , says Paul Murray, JCB’s Teletruk general manager...
Dec 21, 2018 Comments Off on Fit for purpose: 5 resolutions to transform safety in your workplace
Nov 25, 2018 Comments Off on Agency workers at risk due to lack of lift truck training, warns RTITB
Nov 25, 2018 Comments Off on CFTS says no to rulers
Nov 25, 2018 Comments Off on Floor marking for all traffic levels with Brady