Key findings: Freight forwarding services
Buyers seeking a cost-effective procurement from the leading freight forwarders can leverage this market intelligence report. It offers actionable insights into the category pricing strategies, supplier selection criteria, and procurement best practices that are suited to the dynamics of the current freight forwarding services market.
The demand for freight forwarding services is primarily driven by an exponential increase in the cross-border trade in the e-commerce industry. Last year, the gross merchandise value for cross-border e-commerce trade touched a figure of about USD550 billion and is expected to grow in the coming years. Retailers in the developed nations prefer outsourcing the manufacturing activities to the low-cost countries, which consequently creates demand for services from the freight forwarders. Growing complexities such as customs and import clearance and adherence to the regulatory norms and paperwork associated with cross-border trade are compelling enterprise to seek services from the freight forwarders who aid them in such time-consuming tasks. These factors are significantly contributing to the category spend momentum. However, to fulfill the tasks, the freight forwarders either engage their in-house workforce or rope in third parties. Consequently, this adds up to their operational costs which are ultimately borne by the buyers who tend to incur excessive procurement spend.
For more information on the exact year-over-year spend growth rate, and pricing strategies for a cost-effective procurement, download a free report sample.
Written from the perspective of the buyers and suppliers, this freight forwarding services market intelligence report offers comprehensive coverage of the factors influencing the pricing strategies across various regions and helps buyers to identify opportunities for cost savings. To help buyers procure the best quality freight forwarding services at cost-effective rates, an analysis of the pricing strategies, insights into supplier selection criteria, and procurement best practices are also offered in this report.
Insights offered in this freight forwarding services sourcing and procurement report will help the buyers understand:
- Global spend potential for a period of 2018-2023
- Pricing strategies and supplier selection criteria
- Supplier positioning of the leading freight forwarders
- Procurement best practices
Analyze the global category spend for freight forwarding services
Countries promoting bilateral and multilateral free trade across the international borders is favoring the growth of the freight forwarding services market on a global scale. Prevalence of free trade is creating a requirement for inbound and outbound logistics services which is subsequently propelling the demand for freight forwarding services. This is accounting for an impressive global category spend growth of the market.
To access the annual market size data for the global category spend, download a free sample copy.
This freight forwarding services market intelligence report covers:
- Regional and global spend opportunities
- Spend dynamics on a global and regional level
- Category spend and spend growth potential
Optimize category spend for freight forwarding services
Engaging with appropriate freight forwarders can aid buyers in minimizing their procurement spend in the long-run. Buyers from the manufacturing sector can leverage VMI solutions offered by the suppliers for strategic planning of locations of inbound hubs of components to facilitate JIT delivery. Packaging solutions offered by some of the leading freight forwarders enlisted in this report aid buyers to minimize in-transit shipment damage.
This freight forwarding services sourcing and procurement report covers:
- Pricing strategies to identify cost-saving opportunities
- Supplier selection criteria and procurement best practices
- Technology-facilitated procurement metrics
- Supply market competitiveness and factors influencing buyer power
Assess category spend for the US region
Home to flourishing industries like manufacturing heavy machinery, electrical equipment, chemicals, aircraft, and petrochemicals derived from crude oil, the US has emerged as the second largest exporters of goods across the globe. This is creating demand for services such as customs clearance, documentation, and cross-border logistics, which is propelling the demand for freight forwarding services.
Additional information offered in this freight forwarding services market intelligence report will help buyers analyze:
- Category spend in the US
- Top freight forwarders in the US
- Category cost drivers impacting pricing strategies in the US
Build strategies for effective supplier selection
Buyers must engage with freight forwarders that are equipped with sound technological capabilities to provide improved and efficient services. Some of the technological parameters that must be considered by buyers while selecting a supplier are listed below:
- Application of emerging technologies such as cloud-based TMS and IoT
- EDI formats supported by the service providers
- Use of data analytics tools to optimize routes and reduce costs
This freight forwarding services sourcing and procurement report identifies the major costs incurred by suppliers and provides additional information on:
- Key supplier selection criteria
- Service level agreements and procurement best practices
- Total cost of ownership and category risks
Devise effective category management strategies for freight forwarding services
Buyers may often require to ship cargo that does not cover the full cargo capacity. In those cases, they end up paying for the full service which they might not fully utilize. This increases their procurement spend. Such buyers are advised to engage with freight forwarders that can offer LCL consolidation services with minimal delays. This will enable buyers to use and pay for freight forwarding services as per their requirements, thereby; manage their category spend.
Key insights offered in this freight forwarding services market intelligence report will help the buyers identify:
- Category risks and strategies to mitigate them
- Major supplier and buyer KPIs
- Threat of new substitutes and availability of new suppliers
Design strategies based on regional spend data
The establishment of manufacturing hubs in APAC will be one of the significant category enablers driving the growth of the freight forwarding services market in the region. North America is witnessing an increasing demand for overseas, with the US accounting for a major share of nearly 85% of the region's global trade. This is driving the demand for inbound logistics, thereby; contributing to the category spend momentum in the region.
To estimate the regional spend potential, this freight forwarding services market intelligence report considers geographies such as:
- North America
- South America
Information on the top freight forwarders, actionable insights into pricing strategies, supplier selection criteria, and procurement best practices to address the significant risks faced while procuring freight forwarding services are 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
Freight Forwarding Services - Category Spend Analysis
According to SpendEdge analysts, one of the key growth contributors for the global freight forwarding services supply market is the need to improve customer satisfaction along with changing lifestyle preferences of the customers.
Freight Forwarding Services – Procurement Best Practices
Buyers must engage with suppliers that can facilitate inventory optimization. Buyers should engage with suppliers that offer inventory optimization tools such as in-transit visibility. This will help buyers check for port congestion or other bottlenecks and take immediate remedial measures to avoid inventory hold-ups.
Freight Forwarding Services - Procurement Challenges
Based on the analysis in this report, a major procurement pain point experienced by the buyers is the lack of coordination across shipping locations. SpendEdge’s procurement specialists predict that the buyers should engage with the suppliers that can adopt flexible budgeting approach when dealing with a large volume of import/export shipments.