Given the nature of the degree of change analysed in the last section, one
might conclude that UK 3PLs have a strong hold over the domestic market
and that they have little to fear from operators based elsewhere in the EU.
This conclusion might also naively be made from the conclusions of research
by the Institute of Grocery Distribution (IGD), which once again recognized
that UK 3PL operators are the most efficient within the whole of the EU (IGD,
2005). This may well be the case, in particular for the retail grocery market, but
in other sectors 3PLs from the rest of the EU and elsewhere are having an
increasing share of the UK market.
Table 21.4 shows some such operators (Motor Transport, 2004). Most have
particular strengths in the automotive and clothing sectors. In addition, the
strength of companies such as DHL and UPS, both of which are major players
in the express parcels and document sectors, should be recognized.
The geographical enlargement of the EU in May 2004 has presented
increased market opportunities for 3PL operators, including those based in
the UK. Prior to the formal accession of the eight countries in Central and
Eastern Europe (CEE) plus Cyprus and Malta, various UK operators such as
Exel (including in particular Tibbett and Britten) and P and O Trans European
(now part of Wincanton) had penetrated the market in Central and Eastern
Europe. All have recognized the considerable market opportunities in Poland,
the Czech Republic and Hungary.