TNT has been the center of rumors that both UPS and FedEx may be interested in acquiring the company. While all companies involved deny these rumors, similar rumors surfaced between Exel and UPS right before Deutsche Post World Net bought Exel to form DHL Exel Supply Chain.

If the rumors prove to be true and TNT is acquired by either UPS or FedEx, the acquiring company will significantly strengthen their global footprint and competency. While the industry is still waiting to see the full extent of DHL’s announced reorganization, what is clear is that DHL will increase focus on their core competency, coverage and service within Europe. If UPS or FedEx were to acquire TNT, they would be able to compete directly with DHL in Europe and stand alone as a true global provider with significant strength in the United States and Europe.

Why does this matter?

It’s simple really. Parcel shippers are constantly seeking a single vendor they can use for global operations. From a strategic sourcing standpoint, the first company that reaches that level of coverage and service will fill a gaping hole in the industry. So if TNT does go to either UPS or FedEx, it’ll be a big competitive advantage for that company…and possibly for you if your global business relies on parcel service and you’re looking to cut costs and hassles by working with one vendor.

***Portions of this post are reprinted from my Transportation Core Category Detail in this quarter’s SupplyWatch report. The full article is here and a free subscription to the electronic version is here.***

Rachel Rutkoski is a Category Manager for Transportation and Logistics in Ariba’s Global Services Organization. Rachel is recognized by the Institute for Supply Management as a Certified Professional in Supply Management (C.P.S.M.) and has several years experience as a supply chain and transportation analyst in Fortune 500 companies.

Email Forward & Bookmarks

Close this WindowBookmark and Share This Page

Save to Browser Favorites

Ask backflip blinklist BlogBookmark Bloglines BlogMarks Blogsvine BUMPzee! CiteULike co.mments Connotea del.icio.us

DotNetKicks Digg diigo dropjack.com dzone Facebook Fark Faves Feed Me Links Friendsite folkd.com Furl

Google Hugg Jeqq Kaboodle linkaGoGo LinksMarker Ma.gnolia Mister Wong Mixx MySpace MyWeb Netvouz

Newsvine PlugIM popcurrent Propeller Reddit Rojo Segnalo Shoutwire Simpy sk*rt Slashdot Sphere

Sphinn Spurl.net Squidoo StumbleUpon Technorati ThisNext Webride Windows Live Yahoo!

Email This to a Friend

Copy HTML: 

If you like this then please subscribe to the RSS Feed.

Powered by Bookmarkify™

More »