Schneider and Hellmann have agreed an alliance to offer global supply chain management solutions.
The latest protagonists of the logistics industry’s consolidation and alliance wave are Schneider Logistics and Hellmann Worldwide Logistics. The two market leaders have said they will provide global supply chain management solutions to clients worldwide. The synergies are good, with technical and engineering capabilities from technology-based logistics specialist Schneider and global freight forwarding, customs, warehousing and distribution services from Hellmann. However, particularly for Schneider, the alliance is more importantly a transatlantic gateway.
Germany’s Hellmann has developed a global network based on its own facilities and those of partners, while establishing itself as one of the leading pan-European players. However, just looking at the company’s website reveals its weaker IT capacities. Schneider, for its part, is undoubtedly a strong presence in its domestic US market but has established little activity elsewhere – particularly in the ever-attractive European arena.
If one thing can be said about the European logistics market is that it takes no prisoners. Penske learnt this lesson the hard way: its standalone market entry strategy, designed to make an impact in the European logistics industry, ended with the carrier going back across the Atlantic with little to show for its trouble. Schneider’s strategy already puts it in a better position by having direct access to ‘insider’ information on the market and its workings as well as allowing for a smoother and less risky entry.
The US market does not accept foreign players with open arms either. As two of the most populated industries, the US and European logistics markets represent attractive sources of growth but are also strongly guarded by established operators defending their market share. Transatlantic alliances, such as that between Hellmann and Schneider, are undoubtedly good moves. Of course, the fact that in this case they complement each other’s service portfolio doesn’t hurt either.
