Key findings: Road freight transportation services
This road freight transportation services procurement research report offers actionable information on the global spend potential, regional spend dynamics, and pricing strategies. Insights delivered in this report include supplier selection criteria and procurement best practices that will help purchasers optimize their spend while procuring road freight transportation services.
A significant boost in the bilateral trade is creating an exponential demand for the road freight transportation services market. According to the latest observations, road freight transport is expected to reach nearly 31,000 tonnes-kilometers by 2030 and 51,000 tonnes-kilometers by 2050. Most of the emerging nations are increasing their focus on developing and fortifying road infrastructure, which, consequently, is accelerating the category spend momentum in those regions. However, the rising wages of the drivers is posing as one of the significant challenges in the road freight transportation market, as it is resulting in a skyrocketing procurement spend for buyers.
For more information on the exact year-over-year spend growth rate, download a free report sample.
Written from the perspective of the buyers and suppliers, this road freight transportation services market intelligence report offers comprehensive coverage of the factors influencing the pricing strategies across various regions. To aid in minimizing buyer’s procurement spend, this market intelligence report has recommended supplier selection criteria and procurement best practices to help buyers to identify opportunities for cost savings.
Insights offered in this road freight transportation services market intelligence report will help the buyers understand:
- Global spend potential for a period of 2018-2023
- Supplier cost breakup and procurement best practices
- US market overview and pricing strategies
- Supply chain margins and key cost drivers
Analyze the global category spend for road freight transportation services
End-user sectors mainly pharmaceuticals and perishable goods are creating a high demand for refrigerated transport services, which is currently accounting for a significant share in the global spend growth rate of the road freight transportation services market. The future growth of the e-commerce industry on a global scale will also supplement the category growth as this industry is known to exhibit significant usage of road freight transportation services.
To access the annual market size data for the global category spend, download a free sample copy.
This road freight transportation services sourcing and procurement report offers coverage of:
- Regional and global spend opportunities
- Spend dynamics on a global and regional level
- Category spend and spend growth potential
Optimize category spend for road freight transportation services
On-time delivery while maintaining minimum concern transportation cost is a key for enterprises looking to purchase road freight transportation services from suppliers across the globe. To achieve the same, one of the highly recommended procurement best practices in this market is to evaluate suppliers based on their transit timelines. It is advised that buyers partner with a supplier that leverage technologies such as route optimization and traffic management systems to reduce their transit time, thereby; reducing the overall transportation cost.
This road freight transportation services market intelligence report also offers coverage of:
- Cost-saving opportunities
- Procurement best practices
- Technology-facilitated procurement metrics
- Supply market competitiveness and factors influencing buyer power
Assess category spend for the US region
The US accounts for a high rate of cross-border transport of auto components from Mexico, to procure low-price vehicle parts from the region. Consequently, this is propelling the demand for road freight transportation services market in the region. The strong impetus given by the recent US government to the local manufacturing industry, most of which are significant end-users of road freight services, is further accelerating the category spend momentum.
Additional information offered in this road freight transportation services market intelligence report will help buyers analyze:
- Category spend in the US
- Supplier selection criteria in the US
- Margins of suppliers and pricing strategies
Build strategies for effective supplier selection
In this market, where increasing procurement spend poses as one of the critical concerns, one of the effective supplier selection criteria is to evaluate the service providers based on their capacity management capabilities at reasonable rates. Service providers are expected to invest in transport management processes, adopt advanced technologies such as intermodal rail solutions to reduce the overall operational costs.
This road freight transportation 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 road freight transportation services
Category managers are focusing on strategies such as bundling value-added services such as warehousing and labeling support, opting for suppliers with high-mileage vehicles, cross-docking among others to maximize their cost savings and to better manage their category spend.
Key insights offered in this road freight transportation services market intelligence report will help the buyers identify:
- Category risks and strategies to mitigate them
- Major supplier and buyer KPIs
- Availability of new suppliers and pricing strategies
Design strategies based on regional spend data
The ongoing political tensions because of Brexit has resulted in a slowdown in the growth of some of the critical end-users in Europe. This is adversely impacting the spend momentum of the road freight transportation services market in the region. Prevalence of favorable trade policies in the MEA countries is inviting businesses from the global sector. Consequently, this is augmenting the scopes of category growth in the region.
To estimate the regional spend potential, this road freight transportation services sourcing and procurement report considers geographies such as:
- North America
- South America
Information on the top road freight transportation services providers, insights into supplier selection criteria, pricing strategies, and procurement best practices 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
Road Freight Transportation Services - Category Spend Analysis
According to SpendEdge analysts, one of the key growth contributors for the global road freight transportation services market is the industry solutions that can be easily integrated into the businesses' value chain, thus enhancing the potential for tapping into high-growth markets. Technological developments such as the use of IoT and cloud services have automated processes and enhanced customer centricity.
Road Freight Transportation Services – Procurement Best Practices
Buyers must engage with suppliers that can provide them comprehensive and cross-industry service portfolio. Buyers should engage with suppliers that have expertise in dealing with transportation across a wide range of industries. The type of shipments includes perishables, chemicals, and oil.
Road Freight Transportation Services - Procurement Challenges
Based on the analysis in this report, a major procurement pain point experienced by the buyers is the poor quality of roads in semi-urban and rural areas. SpendEdge’s procurement specialists predict that the buyers should engage with the suppliers using rail freight transportation services to reach a closest access point for the consignee.