Strategy - Raising A Blue-Ribbon Pig vs. Tactics - Putting Lipstick On Her

As XPO has emerged from murky depths to dissipate mists and create an amazingly broad and deep integrated service provider, industry watchers (both cynics and cheerleaders) have speculated about what the relatively newly-formed giant's end game might be.

Brad Jacobs, the visionary deal-maker who is fashioning a largely different organizational paradigm in the industry has been open about the opportunity, as he sees it.  That is, in his words, the supply chain service provider sector is - and has been - ripe for consolidation.

He is not off the mark.  Granted, a few big-time players, most notably with international roots, have built powerful economic engines that can provide high-quality, integrated, end-to-end services.  But there are only a few, and they seem to require considerable scale in their base of clients to be as successful as they would like.

The drop-off after those few leaders is huge.  The operating landscape is littered with the remnants of another age - small, focused, limited service, limited coverage companies.  They are often family-owned, or have roots in family ownership and operating management (there are exceptions, of course).

imho, their choices are what they were some twenty years ago, only more pressing today.  Consolidate through acquisition and integration, get attractive as acquisition candidates, or get smaller and focus on some differentiator in services or industry.

We will mourn the passing of a kinder, gentler age,  much like some regret that milk is no longer delivered to our doorsteps.  But, we can ill-afford to make better buggy whips when horses are pets and cars can drive themselves.