Ti: LSPs increasing M&A activity to provide specialist e-retailing services

Transport Intelligence writes:

The global transportation and logistics industry continues to be shaped by mergers and acquisition activity as companies seek to adapt to rapidly changing market conditions.

Whilst already growing at a rapid pace, the e-retailing logistics sector received a very strong boost in 2020 from the COVID crisis, as people increasingly undertook their shopping from home. This placed enormous pressure on many logistics and transportation providers, not only from the increased amounts of volumes but also from the changing characteristics of the business:

– Logistics operations need to deal with smaller, but more frequent deliveries

– Increased levels of automation are required in warehouses

– Increased visibility of shipments are required to provide end-recipients with details of delivery times

– There are increased levels of returns

– Cross border e-commerce volumes are growing

– Driver and truck assets need to be better utilised

– Better supply chain orchestration is required.

One of the results has been the increasing acquisition of companies which have been able to provide logistics companies with these specialist services…

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