Alex Lennane has written in the Loadstar about the merger or assimilation of six UK diverse logistics firms under one management. Perhaps this is what’s necessary to get firms to work together– a bigger hammer. If they cannot learn to do it on their own, let’s put them together under one management.
However, this approach is fraught with issues. Most mergers do not reach the state of grace they envisioned, because of resistance to change within. And much of the value of a firm is in its people, and their skills at dealing with the countless exceptions that mark any business. Another is the heterogeneity of the businesses– every firm in a merger thinks their way of doing something has to work that way for them. It might not be true, or it might, but even thinking it draws boundaries that can take considerable effort to crack.
We will have to see if this new management structure generates rewards the size the PE firm expects. Of course if they just make something big enough to sell publicly with temporary results, that will be enough for them to make their money and pass the risk on.
via PE firm puts six operators together to form the UK’s largest logistics company – The Loadstar
I saw this thanks to . It makes the point that use of a good ELD in trucks forces everyone– the firm, the trucker, support staff, and customers to focus on hitting the marks for serving the truck supply chain. This should make customer service improve all around, but also will save considerable money in administrative costs if properly integrated with other systems to make visualization easy. The article below identifies some of the extended cost savings and service improvements that can be made.
via How to cash in on ELDs
This is the first of two articles on the investment firm Stifel’s opinion of the top game changers in Logistics. It’s a summary of the report Stifel recently issued.
One of their interesting views is that for all the talk of automation coming, actually in logistics people are seeing shortages of blue collar workers to do the jobs that are needed now. the automation isn’t coming fast enough to help firms with a problem getting labor. Their argument points to autonomous trucks and the world wide driver shortage. Autonomous trucks are coming, but nowhere near fast enough to replace the dozens of folks leaving truck driving now. It won’t bail us out.
Another point they make is that the e-commerce strategy of placing inventory further forward in the supply chain to be closer to customers may come up against a real shortage of places to put it, particularly in urbanized areas. This makes Amazon’s purchase of Whole Foods look very good indeed as a strategy.
via Supply Chain News: Stifel Releases Its Top 10 “Game Changers” in the Logistics and Transportation Arena
Posted in Investing, Labor Economics, Logistics, Strategy, Supply Chains, Trucking
Tagged disruption, innovation, investment, Logistics, transportation, trends