Apart from seeing more brown trucks, and less orange ones, what will UPS’s bid for TNT Express mean for shippers in Europe or the USA?
The combined size of the UPS/TNT European express-parcels operations could be close to the DHL/Deutsche Post market share. So, how will DHL, Fedex and the other key players in European package-delivery react?
Size is obviously important. But mid-term profits often play a major role in mergers like this. Economies of scale are likely, where the companies have parallel investments in freight networks, warehousing or administration operations.
Positive impacts on customer service and on-time delivery are expected, but obviously remain to be seen. We believe that the high level of competition in the market will only intensify further with this move.
Shippers can take advantage of this change if they take an agile approach to evaluating and reviewing the various service provider offerings in the market. In order to maximize savings opportunities, Polygon users are able to regularly review their logistics pricing, by means of its powerful analysis and what-if capabilities. This can be done on a lane-by-lane basis and as often as they choose – typically once a quarter, or at least once a year.
How does your company evaluate the impact of such market changes?
One thing is clear however – “Things are moving in the European freight market!”
The Polygon Team