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Why gia' nts are scary Mr X looks on with

24th June 2004, Page 9
24th June 2004
Page 9
Page 9, 24th June 2004 — Why gia' nts are scary Mr X looks on with
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Which of the following most accurately describes the problem?

some trepidation at the colossus being created by Exel and its Tibbet & Britten retail therapy

According to the unsolicited e-mails that occasionally find their way into my in-box, bigger is almost certainly better. Ifs a refrain that we're told a thousand times over — size matters. However, may I be the first to add a note of caution to the general rejoicing that has greeted the news of Exel's bid for its smaller rival Tibbett & Britten?

While it is undoubtedly good news for Exel and its shareholders, creating one of the world's largest supply chain logistics management companies (or whatever ifs calling itself this week) there must be a number of other chief executives looking over their shoulders with a little trepidation.

Oh to have been a fly on the wall at Wincanton or Christian Salvesen when the news leaked out (come to think of it, oh to have been to be a fly on the wall at Christian Salvesen at any point during the last six months — but I digress). I can't imagine for one minute that any of the larger players in the logistics industry will have viewed this takeover with anything other than trepidation as they witness the creation of a company that could almost certainly offer more for less and will be looking to nibble at their margins.

Oh to have been a fly on the wall at Wincanton or Christian Salvesen when the news leaked out (come to think of it, oh to have been to be a fly on the wall at Christian Salvesen at any point during the last six months — but I digress). I can't imagine for one minute that any of the larger players in the logistics industry will have viewed this takeover with anything other than trepidation as they witness the creation of a company that could almost certainly offer more for less and will be looking to nibble at their margins.

Oh to have been a fly on the wall at Wincanton or Christian Salvesen when the news leaked out (come to think of it, oh to have been to be a fly on the wall at Christian Salvesen at any point during the last six months — but I digress). I can't imagine for one minute that any of the larger players in the logistics industry will have viewed this takeover with anything other than trepidation as they witness the creation of a company that could almost certainly offer more for less and will be looking to nibble at their margins.

Not that I have any great sympathy for the major logistics providers you understand; it's just I have a funny feeling that creating a firm of this size and with its level of marketdomination will mean something to every transport operator in the country.

Ifs not only the fat-cat execs in their walnut-panelled boardrooms who should have cause for concern: everyone who operates in the same sectors as Tibbett & Britten and Exel should be feeling a slight shudder of apprehension. Its sheer size and reach can do nothing but affect the marketplace and this will inevitably have a trickle-down effect on the lower reaches of the industry: be it on the work available or rates. Given its size there's also a fair chance that in seeking subcontractors it will flex its corporate muscles to drive down prices — happy times, eh?

But, to indulge a moment's boundless optimism, perhaps smaller firms will actually win some contracts that are no longer of interest to the behemoth. Well, here's hoping anyway.


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