Big change in the transport and logistics industry doesn’t happen overnight. Although there is a lot of talk about disruptive ideas and technology such as Uber, drones, driverless trucks, 3D printing, The Internet of Things, etc., there are no signs of revolution anytime soon. So my prediction is that not much will change in 2016, but there will be certain changes in the landscape and in our system setup because of current industry trends.
In a recent article, 2015 was coined “The Year of M&A,” citing that “the total deal value for all mergers and acquisitions in the transportation and logistics sector (was) up 40 percent year-over-year in the first three quarters of 2015.” Quite a few of the big players have announced significant, even game-changing, M&As in 2015, which will result in a slightly less-fragmented industry in 2016 as well as encourage others to seek out attractive M&As, too. A kind of domino effect will follow, I venture. For this reason, I expect the M&A trend will keep its momentum in 2016, although most of the active participants in 2015 will probably be concentrating on integration processes.
Digitalization as a trend has been with us for years, and clearly it’s an ongoing process. Coupled with economy of scale, a good digital platform providing a convenient online interface for customers will be important going forward. We will probably see several players introducing new digital platforms allowing customers to self-service as much as possible. To be competitive, you need buying power and access to critical capacity, and you need to be able to offer as full a range of related and value-adding services as possible. Add excellent customer service, including a great online interface, and you will have a winning combination in 2016.
Jens Bjorn Andersen, CEO, DSV