Current Issues

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

Home Depot’s rumoured XPO Logistics take-over ‘bad news for UK brands’ warns ParcelHero

05-Jan-2018
David Jinks MILT (pictured)
Head of Consumer Research, Parcelhero
Home Depot’s rumoured XPO Logistics take-over ‘bad news for UK brands’ warns ParcelHero
The rumoured takeover of XPO Logistics – the European and US freight titan – by the American DIY retailer Home Depot would not be in the best interests of XPO’s many British clients, says the international delivery expert ParcelHero.

ParcelHero’s Head of Consumer Research – David Jinks MILT – says ‘Speculation was rife just before Christmas that Home Depot – the American equivalent of B&Q - was considering buying XPO Logistics – in part just to ensure that Amazon doesn’t snap it up first!’

Explains David: ‘Some retail analysts believe Home Depot’s mooted XPO take-over would actually help it become an Amazon in its own right; controlling not just the sales but the means of delivery of a huge range of items.’

However, David believes the move would be a mistake for both XPO and Home Depot – and particularly for XPO’s many UK users.

Says David: ‘Home Depot is presumably mostly after the final mile/home delivery side of XPO, which is probably only around 6% of what the logistics giant does. Equally XPO probably only gains around 5% of its overall income from Home Depot - so there is precious little synergy.’

Continues David: ‘Most importantly, XPO is a logistic provider for many of the UK’s major brands. It runs UK supply chain operations for companies from Ford to B&Q to Iceland. Three years ago US-based XPO took over the huge European logistics company Norbert Dentressangle – which in its turn had previously absorbed two British transport giants, Christian Salvesen and TDG. The company is so integrated into many British retailers’ and manufacturers’ operations that it has become what’s known as a ‘4PL’ – running fourth-party logistics and supply chain services for many of its business customers: from handling their returns and refurbishing products to operating their customer-help lines!’

David warns: ‘This enormous supply-chain knowledge is likely to be undervalued by Home Depot - which would consider the take over very much in the light of domestic US furniture and DIY deliveries. This is a flawed idea and it’s to be hoped it was nothing more than the result of pre-Christmas excitement!’

App Insights: How can artificial intelligence innovate supply chain management?
1 week ago
Managing Technological Change Without any Supply Chain Disruption
1 week ago
Moody’s Blues for House of Fraser; but Website Failings are Just as Damaging
1 week ago
Artificial Intelligence: What’s Now And Next In IoT-driven Supply Chain Innovation
1 week ago
Indiana Jones and the supply chain bullwhip effect
1 week ago
How Enterprise Labeling Helps You Conquer Regulatory Challenges
2 weeks ago
3 Tips for Empowering Millennial Warehouse Workers
2 weeks ago
More robots means easier delivery - but what about the infrastructure?
2 weeks ago
Safety in the warehouse: Five key risk areas for 360-degree protection
2 weeks ago
Automotive resilience, not just airbags and crash tests, but IT too
2 weeks ago
New High Street panel is facing a race against a terminal diagnosis
3 weeks ago
Delivering the supply chain revolution
3 weeks ago
A market of one: the potential of the personalized supply chain
3 weeks ago
5 EIS rules you are probably not aware of
3 weeks ago
TMS: an enterprise priority
1 month ago
Labeling Solutions for Global Expansion
1 month ago
Prime Day will be a $1.6bn loss-leader creating millions more Prime members, says e-commerce expert
1 month ago
Say what? The new possibilities of voice and machine driven retail
1 month ago
‘Peak faith’ in the cloud only 12-18 months away with slump to follow, warns 6point6 Cloud Gateway
1 month ago
As you were for UK manufacturing sector, but new business growth at three month high
1 month ago
Back to IoT basics: Automating outcomes to improve customer experience
1 month ago
Investigation of the "Fast Fashion" impact
1 month ago
Redefining Rental for Materials Handling Equipment
1 month ago
With the Intelligent Enterprise, SAP Creates “A Completely Different Kind of Flexibility”
1 month ago
The supply chain is only as strong as its weakest link
1 month ago
How to Streamline Labeling in the Pharma Space
1 month ago
‘A revolution happened in the way we buy services last week – and no one has noticed!’
1 month ago
Hot Topics at GS1 Connect? Labeling, Blockchain and More
1 month ago
Retailers must Embrace Change
1 month ago
Labeling Solutions That Bridge Islands of Data
2 months ago
My Journey to the World’s Most Important Gathering of Supply Chain Leaders
2 months ago
Workforce of the Future
2 months ago
Securing your supply chain against political uncertainty
2 months ago
On-demand warehousing could help retailers score big this summer
2 months ago
Half of organisations set for major procurement and supply chain AI investment within two years
2 months ago
Brexit, the weather & online shopping: How Britain’s favourite conversations are shaping supply chains
2 months ago
The Road to Regulatory Compliance for Your Supply Chain Labeling
2 months ago
The War on Packaging
2 months ago
Five data dramas that keep your CIO awake at night
2 months ago
As sales fall new report finds many department stores’ websites suffer from clunky integration and poor delive
2 months ago
Got Your Surfboards Ready to Master the Wave of Digitalization?
2 months ago
TrustArc to Offer IAPP Privacy Core® GDPR Training to Address Compliance Requirements
2 months ago
The Market has never been Stronger for Horizontal and Vertical API Platforms
2 months ago
Selecting the best Transport Management System - One of the most important logistics decisions you’ll make
2 months ago
“Digital Transformation” and Supply Chain Planning
2 months ago
Coolest Advice for Making Blockbuster IoT Devices?
2 months ago
The Fall of ‘Made in China’
2 months ago
How can artificial intelligence help the food industry?
3 months ago
Streamlining Operations With Waveless Picking
3 months ago