Key findings: Courier express and parcel services
Granular insights into courier express and parcel services pricing strategies that are specific to different geographies and the current market forecasts are offered in this procurement intelligence report. Information on the top suppliers and courier express and parcel services risk management strategies provided in this report will aid buyers to better design their procurement strategies.
The growing demand for same-day deliveries from sectors such as healthcare is acting as one of the significant category growth enablers that are driving the spend momentum of the market. End-user sectors such as automotive, textile, and pharmaceuticals are expanding their business facilities in the rural areas which are creating a high demand for courier express parcels services, which is also responsible in accelerating the category growth. Despite the projections of growth, buyers will face roadblocks in stabilizing courier express and parcel services pricing strategies. Such instability is mainly attributed to the dynamic category price because of the increasing operational costs incurred by suppliers because of fluctuating fuel costs, R&D investments, among others.
To access complete details on the annual spend growth rate until 2023 and get insights into courier express and parcel services risk management strategies, download a free sample.
Our reports from the logistics, warehousing and transportation category offer buyers with actionable data on the current and future supply market scenario. Coverage of the US market, insights into courier express and parcel services pricing strategies, category spend analysis, supplier cost structure, among others, is also offered in this courier express and parcel services procurement intelligence report. Additional information includes an analysis of the courier express and parcel services risk management strategies, top suppliers, and category management strategies.
Insights offered in this courier express and parcel services procurement intelligence report will help the buyers understand:
- Global and regional spend potential for the period of 2018-2023
- Courier express and services pricing strategies to achieve cost-savings
- Regional and global pricing models
- Ease of market entry
Analyze the global category spend for courier express and parcel services
Favorable trade policies have paved the way for uninhibited cross-border trade which has led in an exponential increase in the volume parcels. Consequently, this is creating a substantial requirement for the courier express and parcel services procurement across most of the significant economies, thereby, driving the category spend growth. This growth will also be supplemented by the growing focus of retail industry on reducing their inventory expense and to boost their sales. Such focus is expected to create demand for express courier services during the forecast period.
Access the complete year-over-year spend growth rate and category spend details by downloading a free sample copy.
This courier express and parcel services procurement intelligence report covers:
- Regional spend opportunity for suppliers
- Global and regional spend segmentation
- Courier express and parcel services risk management strategies
Optimize category spend for Courier express and parcel services
Buyers tend to incur an excess spend during the courier express and parcel services procurement because of the surcharges that cover about 40% of the total costs. It is advised that buyers secure visibility on all such surcharges that are applicable to the services. This will help them to identify surcharges that have the highest impact on prices and ask for waivers or discounts to reduce the ultimate costs for services procured.
This courier express and parcel services procurement intelligence report covers:
- Total cost of ownership and overview of pricing models
- Supply chain margins and courier express and parcel services risk management strategies
- Overview and comparison of pricing models
Assess category spend for the US region
The automotive industry in the US is accounting for a high degree of cross-border trade with Mexico, where they have outsourced their component manufacturing units to leverage the low labor and manufacturing costs. This has resulted in a sharp rise in the demand for CEP services in the US. Relaxation of corporate taxes is expected to encourage organizations to reshore their operations from the LCCs which is predicted to lead to an increase in the demand for CEP services.
Additional information offered in this courier express and parcel services procurement intelligence report will help buyers analyze:
- Cost drivers impacting the courier express and parcel services pricing strategies in the US
- Margins of suppliers and category cost drivers
- Category spend potential in the US
Build strategies for effective supplier selection
Suppliers must be assessed based on their partnerships with national and international intermodal transport providers. This reduces their dependency on the limited number of transport and thereby enable them to provide a back-up to the buyers during instances of failure of any courier delivery personnel/vessel.
This courier express and parcel services procurement intelligence report identifies the major costs incurred by suppliers and provides additional information on:
- Supplier ecosystem
- Buyer and supplier KPIs
- Incumbent supplier evaluation metrics
Devise effective category management strategies for Courier express and parcel services
Category managers must ensure that the service providers offer transparency in terms of invoicing throughout their tenure. Buyers should use rate transparency and benchmarking tools such as parcel audit software to evaluate service providers' transparency in pricing.
Critical insights offered in this courier express and parcel services procurement intelligence report will help the buyers identify:
- Critical courier express and parcel services risk management strategies
- Category management objectives
- Sustainability practices
Determine the spend dynamics for key geographies
Exponential demand growth from e-commerce and pharmaceuticals industries will drive the category spend momentum in APAC which is predicted to secure the largest market share at the end of the forecast period. However, the ongoing Brexit dilemma is causing a slowdown in the end-user sectors that is reducing the number of B2B parcels in Europe. This is adversely impacting the category growth in the region.
Key geographies analyzed in this courier express and parcel services procurement intelligence report include the following:
- North America
- South America
Information on the top suppliers, an overview of courier express and parcel services pricing strategies and major risks faced during category procurement is offered in this market intelligence report. Download a free sample to access the report’s complete scope of coverage.
Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Courier Express and Parcel Services - Category Spend Analysis
According to SpendEdge analysts, one of the key growth contributors for global courier express and parcel services supply market is the increase in the offering of enhanced services and additional features such as returns management, real-time monitoring and control facilities, delivery guarantee, shorter lead time, and safety features.
Courier Express and Parcel Services – Procurement Best Practices
A performance-based rewarding approach such as giving incentives on achieving the key performance parameters helps to ensure that supplier works to achieve the mutually agreed performance targets. A key strategy adopted by procurement managers in this market space is to establish contracts with a performance-based reward system.
Courier Express and Parcel Services - Procurement Challenges
A major procurement pain point experienced by the buyers is the limited supply base creating challenges for supplier selection and cost reduction. SpendEdge’s procurement specialists predict that the buyers must use dual supplier strategy where the buyer should depend on two or more suppliers, eliminating over dependency on the supplier. It also helps to create competition between suppliers and counter this specific procurement pain point.