The global logistics market is expected to grow steadily due to the increase in world trade activities from the emerging economies, advancements in transportation and information technology sector, the rise in trade-related agreements, and growth of the global logistics infrastructure across the globe. According to the strategic sourcing specialists, the high cost involved in the procurement and sourcing of goods is one of the major factors restricting the growth of this market. As a result, many logistics companies across the globe have started using strategic sourcing solutions and collaborative processes like demand planning and data sharing across business partners and departments to streamline their procurement efforts across the supply chain.
Moreover, the strategic sourcing studies offered by SpendEdge, help logistics companies decrease turnaround time for their procurement processes.
The Procurement Pain Point and Insights Offered
One of the leading logistics companies in the US wanted to establish a robust and flexible resource deployment model to enhance the productivity of internal operations. They also wanted to devise a strategic sourcing plan through centralization, standardization, and spend management capabilities, while keeping a track of the significant savings metrics. Additionally, the client wanted to gain an in-depth understanding of the metrics and standardized reporting tools to streamline their procurement efforts.
The strategic sourcing specialists at SpendEdge followed a blended research methodology that included primary and secondary research coupled with qualitative and quantitative data collection methodologies to address the specific category requirements of logistics companies facing similar issues. During the course of this strategic sourcing study, the client was able to identify the low-cost and best-cost country locations across the globe. The client was also recommended with tools and processes to establish a robust, centralized and standardized strategic procurement process across the supply chain. This helped them reduce maverick spend and achieve significant cost savings.
Key questions answered in this strategic sourcing engagement include
The strategic sourcing study helped logistics companies devise and implement tools and processes to identify and leverage opportunities for strategic sourcing. The solution offed also helped them streamline their firm’s procurement efforts significantly. The client was also able to identify the best cost sourcing locations across geographies and the logistics companies currently leveraging such business models.