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Giants With Feet of Clay

By Art van Bodegraven | 06/11/2017 | 3:27 PM

A couple of titans in the parcel shipping space dominate their universe, but are vulnerable to mice nibbling at their foundations.  To make the threat(s) more real, the mice are numerous, take several forms, are voracious, and could become titans in their own right.

FedEx and UPS have constructed vast networks of hubs, complex networks, armies of human resources, ground-based fleets and sizabe airlines - investments that would be almost impossible to replicate.

But, a last-mile partner, the USPS could, if it doesn't shoot itself in the foot, become a threat as well as a collaborator.

Local efforts by regional parcel carriers could take the ege off last-mile aches and pains, even if not on the scale of the USPS, and handling niche products could simplify the FedEx/UPS annoyance of eccentric materiels.

Don't forget Uber and self-driving cars and trucks.

The 400-pound gorilla with a huge appetite and a penchant for challenging processes and markets is Amazon, with an array of products and unconventional delivery mechanisms.  Now, there's a force to be reckoned with, in logistics and in the marketplace.

And, they won't quit innovating and tipping over the applecart, with the blessings of Jeff Bezos.

Bundle up; the winds are a-blowin' and unpredictable.

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