UK: THE SQUEEZE IS ON - LOGISTICS.

UK: THE SQUEEZE IS ON - LOGISTICS. - Margins in logistics are falling as contracts with grocery chains mature and one-off cost savings vanish. But the big supermarkets should be useful as a springboard into new areas where profits may be easier to come b

by Malcolm Brown.

Margins in logistics are falling as contracts with grocery chains mature and one-off cost savings vanish. But the big supermarkets should be useful as a springboard into new areas where profits may be easier to come by.

Logistics companies, normally quite a gentlemanly bunch, started playing dirty last year. Or rather, one of them did. Ask any of the top 10 who the offender was and they all point the finger, off the record, of course, at the same company. Its offence was to be caught out 'low balling', aggressively pitching tenders at unrealistically low prices to buy market share.

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