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Harmonizing transport operations after mergers and acquisitions

Europe remains the global leader in mergers within the food and consumer goods sector. From the beginning of 2023 to mid-2025, nearly 1,600 transactions have been completed here, accounting for more than 40 percent of the global market. An increasing number of acquisitions are operational in nature, aimed at consolidating structures and standardizing supply chains across the demanding EU market. In this process, transport plays a pivotal role, determining whether organizations, once integrated, can unlock synergies and achieve cost advantages.

9/23/2025Author: Artur Lysionok

Harmonizing transport operations after mergers and acquisitions

Consolidation in the European manufacturing sector is driven by several region-specific factors. First and foremost, companies are striving to build efficient distribution networks that span the entire EU single market, which requires significant operational scale and advanced logistics systems. Transport and logistics play a central role here: integrating routes, fleets, and warehouses helps reduce empty mileage, shorten delivery times, and substantially lower both sourcing and finished goods distribution costs.

Secondly, the regulatory pressure from the European Union regarding sustainability and CO₂ reduction is forcing investments in low-emission transport technologies and supply chain optimization. Individual companies often cannot bear the full cost of the green transition, making consolidation an attractive strategic option.

A third key driver is the digitalization of logistics operations. The implementation of the eFTI regulation by 2027, rising requirements for product traceability, and the need to integrate with e-commerce systems all demand substantial IT investments. Mergers enable cost-sharing and provide faster access to advanced technological solutions.

In this dynamic landscape, transport is emerging as a critical success factor for mergers. Integrated logistics operations determine whether combined enterprises can fully leverage operational synergies, achieve cost advantages, and maintain service quality across diverse European markets. At the same time, harmonizing transport operations in a cross-border environment poses significant challenges—from regulatory differences within the EU to the need for IT systems integration.

Cross-Border Transport Integration Challenges After M&A

The first step is a thorough analysis of existing operations and systems. The audit aims to identify key touchpoints with supply chain partners and areas of greatest fragmentation and inconsistency.

Key questions the organization should answer:

What standards and protocols are currently in use?
Where are the biggest gaps or duplicate processes?
Which operations generate the highest administrative costs or delays?

The analysis should also cover alternative costs resulting from a lack of standardization, such as the time-consuming nature of manual arrangements or the risk of data errors. It is recommended to develop a process map and classify it in accordance with industry best practices

1. Regulatory Fragmentation in the EU

Despite the existence of the European single market, the harmonization of transport operations faces significant regulatory challenges. Each member state maintains its own road transport regulations, varying standards for maximum vehicle dimensions and weight, as well as separate control and enforcement systems.

Fragmentation is particularly evident in road tolling systems. Each country operates its own platform, which for manufacturers running cross-border operations, means dealing with multiple, non-standardized payment systems. This significantly complicates route planning and the calculation of distribution costs.

In addition, the growing number of low-emission zones in European cities adds another layer of complexity. For manufacturers that need to deliver products into city centers, this requires maintaining a fleet that complies with the strictest emission standards or investing in alternative distribution methods.

2. IT Systems Integration

One of the most complex aspects of post-merger integration in Europe is the harmonization of IT systems operating in different languages and adapted to local business standards. Acquired companies often use a variety of TMS and WMS platforms that have been customized over the years to meet the specific processes and requirements of local markets.

Particularly critical is integration with customer systems across diverse European markets. Each country may require different EDI data exchange standards, document formats, or reporting procedures, which necessitate maintaining multiple communication interfaces during the transition period.

3. Digitalization of Transport Documents and eFTI

The implementation of the eFTI regulation, scheduled for full adoption by 2027, represents both a challenge and an opportunity for companies undergoing M&A processes. The regulation establishes a legal framework for road, rail, inland waterway, and air transport operators to exchange information with control authorities in electronic form.

eFTI signifies a fundamental shift from paper-based documentation to digital data. All EU member states will be required to accept digital freight transport information via certified platforms. For manufacturers operating across multiple European countries, this could greatly simplify cross-border operations by eliminating the need to print and store thousands of transport documents.

At the same time, eFTI implementation demands substantial investments in IT systems and staff training. For companies involved in mergers, this creates a unique opportunity to roll out unified, eFTI-compliant systems in one go—rather than upgrading multiple legacy platforms separately.

4. Consolidation of Supplier Networks

After a merger, shippers often face the task of consolidating extensive networks of transport service providers operating across different countries. Each of the merging organizations may work with hundreds of carriers, freight forwarders, and logistics operators—often with overlapping geographical coverage but differing service standards and technological capabilities.

In the European context, the consolidation process must take into account not only cost and service quality analysis, but also the providers’ ability to handle cross-border operations, their geographical reach, knowledge of local regulations, and compliance with growing ESG requirements. It is particularly important to retain suppliers with strong local expertise and relationships, as they may be critical for serving specific markets or distribution channels.

Optimizing the transport network after a merger in Europe can deliver substantial savings. A well-executed consolidation can reduce transportation costs, primarily through improved load consolidation, optimized routing, and increased bargaining power in negotiations with suppliers.

Model for Harmonizing Transport Operations in Europe

Effective harmonization of transport operations in the European context requires a systematic approach that takes into account the region’s regulatory diversity.

1. Stages of Integration

First Stage – is a comprehensive assessment of the current state, including an audit of existing transport processes in each country of operation, an analysis of compliance with local regulations, a review of IT systems, and a mapping of relationships with logistics service providers. A key objective at this stage is to identify the best regulatory practices from each country that can be adapted and scaled across other locations.

Second Stage – involves detailed mapping of transport processes while accounting for the specific characteristics of each European market. It is essential to identify the processes that can be unified (e.g., safety standards, ESG reporting procedures) and those that must remain differentiated due to local requirements (e.g., customs procedures, labeling obligations).

Third Stage – stage focuses on setting integration priorities based on value creation potential, implementation complexity, and impact on customer operations. In the European context, priority is often given to projects that enable cross-border route optimization and the consolidation of loads across different countries.

2. Defining Common KPIs

The harmonization of transport operations requires the establishment of a unified KPI system that reflects the diversity of markets while enabling performance comparison and the identification of best practices. Common KPIs must be aligned with European realities. These include, among others, delivery timeliness across varying customer working hours, efficient vehicle capacity utilization in cross-border transport, and average customs clearance times.

Customer service quality indicators are particularly critical. They should remain consistent across countries while accommodating local expectations. For example, in Scandinavian markets, customers may expect broader delivery windows and greater flexibility, whereas in German,y punctuality is the primary priority. Financial KPIs should also account for differences in fuel costs, toll charges, and labor rates across European countries.

The KPI system must also incorporate sustainability objectives in line with European climate regulations, such as CO₂ emissions per unit of transported goods, the share of low-emission transport, and compliance with low-emission zones.

3. Two-Tier Architecture

An effective harmonization model is based on a two-tier architecture that combines European-wide standards with local adaptations. The European layer defines common policies, technological standards, key performance indicators, and risk management processes that apply across all countries of operation.

The European layer should include:

Harmonized safety and quality standards in line with EU requirements,
Shared transport and logistics systems enabling route optimization,
Unified ESG reporting procedures,
Standardized data exchange interfaces for customers operating across multiple countries.

The local layer ensures adaptation to the specific characteristics of individual markets, national regulations, business cultures, and customer expectations. This flexibility is crucial for maintaining competitive advantages derived from local knowledge and relationships, which are often one of the main drivers behind acquisitions.

For example, European standards may define the classification of goods in line with eFTI requirements, common cost calculation methodologies that account for variations in toll charges, and standardized communication protocols with international customers. At the same time, local teams adjust specific routes to national infrastructure conditions, select optimal suppliers, and adapt processes to the regulatory requirements of individual countries.

The ultimate goal of post-merger transport harmonization is to establish a dynamic carrier pooling model, enabling the corporate group to manage a shared fleet and transport resources across Europe. A key enabler here can be a digital twin of the logistics network—a virtual replica of the entire transport system that allows scenario simulation, risk forecasting, and more effective capacity planning.

M&A integration represents the ideal moment to launch a joint capacity exchange platform, functioning as an internal freight marketplace within the group. Such a model enhances flexibility while at the same time strengthening resilience against market disruptions.

Importantly, harmonization does not imply excessive centralization. Rather, it requires the implementation of dual-layer transport governance—a strategic macro layer (control, standardization, ESG) combined with local micro-level flexibility. This approach enables the design of logistics networks that are resilient to disruptions while preserving the advantages derived from local knowledge and relationships.

Technologies Supporting Integration in the European Environment

TMS Systems (Transport Management Systems)

Modern TMS platforms offer not only core functionalities such as route planning and carrier management, but also advanced capabilities for optimizing international routes. Their key advantage lies in the ability to optimize transport across the entire European network while simultaneously accounting for local specificities. These systems can analyze multiple combinations of routes, transport modes, and schedules, taking into consideration differences in driver working time regulations, weekend restrictions, fuel cost variations, as well as local holidays and non-working days.

Logistics Platforms

In the European environment, logistics platforms play a particularly important role by enabling digital integration with a wide ecosystem of carriers and logistics operators operating across different countries. The key advantage of such platforms is the ability to quickly access local carriers in new markets without the need to build business relationships from scratch.

For example, CargoON provides access to a network of 25,000 verified transport companies. The platform supports end-to-end transport digitalization—from freight management and tendering, through warehouse time-slot planning, to transport monitoring and real-time incident management. Users gain greater cost control, improved operational transparency, and enhanced collaboration with partners across Europe.

Data Integration

Transport operations require access to reliable real-time information. CargoON’s Visibility solution enables monitoring of vehicle locations across Europe, tracking of order execution, and real-time incident management. A critical element of this process is ensuring data quality and making it transparently available to all stakeholders—from logistics teams to customers and business partners.

Recommendations for Manufacturers

Checklist of Steps for Effective Harmonization of Transport Operations

1. Planning & Preparation Stage

Conduct a comprehensive audit of transport operations in each country of operation, taking into account local regulations.
Identify differences in road tolling systems, traffic restrictions, and low-emission zone requirements.
Analyze IT system compatibility, considering different languages, data formats, and communication standards.
Assess the supplier base in terms of their ability to handle cross-border operations and their knowledge of local markets.

2. Planning Phase

Develop a target operating model for integrated transport operations that reflects the specific characteristics of each European market.
Define common KPIs adapted to Europe’s diversity.
Prepare an IT systems integration plan.
Design a communication strategy for customers, suppliers, and employees in different European languages.

3. Implementation Phase

Deploy projects that leverage immediate opportunities for international route optimization.
Gradually integrate IT systems while maintaining local language support and operational continuity.
Consolidate the supplier base with a focus on retaining key local partners and developing cross-border capabilities.
Train teams on new processes, taking into account cultural differences in work practices.

4. Optimization Phase

Achieve full optimization of the transport network by leveraging data from the entire European organization and maximizing international routing opportunities.
Implement advanced analytics tools tailored to the specific characteristics of different European markets.
Finalize the integration of all systems with full multilingual support and alignment with local business standards.
Deploy solutions compliant with the eFTI regulation and European ESG requirements.
Continuously monitor KPIs and adjust strategies in response to evolving European regulations.

Proposed Monitoring Indicators

Operational KPIs

On-time delivery performance
Utilization of transport capacity on cross-border routes
Average order fulfillment time, including border clearance
Compliance with low-emission zones in European cities

Financial KPIs

Transport cost per product unit, adjusted for cross-country toll differences
Logistics EBITDA, reflecting cost variations between countries
Compliance costs related to European regulations
ROI from integration projects

ESG KPIs (aligned with EU requirements)

CO₂ emissions per unit of transported goods
Share of intermodal transport in long-distance operations
Compliance with European ESG standards across the supply chain
Share of low-emission vehicles in deliveries to restricted traffic zones