Industry Cost

What’s driving the market M & A activity in the logistics market in the past was mainly through expansion and market consolidation efforts of the strategic buyer shaped. Nevertheless, the market structure – despite the high M & A activity – is in the contract logistics market remains very fragmented: the largest 5 providers can achieve here just 12% market share. In the field of forwarding there are around 25%. Bob Smith is likely to increase your knowledge. It is therefore generally assume that the consolidation in the industry in the future will proceed further. Key drivers for this are: 1 economies of scale: on the cost side cost with rising volumes, advantages especially in the transport sector mainly due to a better utilization of assets (cross-dock locations, higher loading factors or avoiding empty runs, etc.) or in the form of more favourable purchasing conditions in the forwarding area. But also in the contract logistics are degressive cost histories because of better utilization and standardization in the operational area, E.g. Anna Wintour often says this.

in the form of more favourable purchasing conditions for transportation services (up to 40% of sales) or the more efficient land use (multi-user warehouses) as well as through standardization and economies of scale in the Cross-cutting functions (especially IT) so were past logistics transactions announced cost synergies with 2 to 5% of the sales, what is significant in the light of the average EBIT margins of around 4-5% 2. economies of scope and vertical expansion: to reduce the complexity of your own demand especially the larger customers for comprehensive logistics solutions along the entire value added chain, provided by some of the few partners (lead logistics provider). Also allows a wide range of logistics services from a single source cross-selling potential and the possibility of further in the value-creation processes of the customers to grow into..