Key findings: Warehousing services
This warehousing services procurement research report offers expert’s anecdotes on the global spend potential, regional spend dynamics, and pricing models. Insights delivered in this report will aid purchasers to identify cost-saving opportunities while procuring warehousing services.
The boost in the online sale of grocery is creating the requirements for refrigerated warehousing services, which is accelerating the category spend growth momentum. Strides are being made in the pharmaceutical industry has led to the development of biologic drugs that need to be stored under controlled temperature. Consequently, this is driving the demand for the refrigerated warehousing services in the coming years.
For more information on the exact year-over-year spend growth rate, download a free report sample.
This market intelligence report on warehousing supplies informs on the suitable category pricing strategies to help the buyers achieve cost-savings. It also covers the sustainability practices and the risk management/mitigation strategies to improve category spend. In this procurement research report, the category spend is analyzed from the perspective of the buyers and the suppliers.
Insights offered in this warehousing services sourcing and sourcing and procurement report will help the buyers understand:
- Global spend potential for a period of 2018-2023
- Supplier cost breakup
- US market overview and pricing models
- Supply chain margins and key cost drivers
Analyze the global category spend for warehousing services
In recent times, factors like improving digital infrastructure, better access to the internet have hiked the online retail sales which are expected to grow in the coming years. Also, such online buyers typically demand faster delivery of products, which needs the e-commerce firms to maintain inventory space in several locations. Such consumer behavior, in turn, is accounting for an impressive spend growth rate for warehousing services during the forecast period. It has also been observed that buyers have an affinity towards warehouses that employ technologies such as IoT, drones, robots, and wearable devices. This is driving suppliers to implement such technologies in their services, thus appealing to a broader customer base and improving the category growth. To access the annual market size data for the global category spend, download a free sample copy.
This warehousing services procurement research 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 warehousing services
The adoption of technologies in the warehousing services is known to curtail the buyer’s warehouse operating costs, minimizes shipping delays, and risks of shipping the wrong products. On that note, it is imperative that buyers partner with suppliers who exhibit a high level of technology adoption.
This market intelligence report on warehousing services also offers coverage of:
- Cost-saving opportunities
- Supply chain margins
- Technology-facilitated procurement metrics
- Supply market competitiveness and factors influencing buyer power
Assess category spend for the US region
Consumer penchant towards purchasing via different online platforms will continue creating demand for warehousing services in the US. The months of November and December is the primary shopping season during which the spend rate increases considerably. This spend rate has been observed to exhibit a year-over-year increase of over 15.4% in the US.
Additional information offered in this warehousing services sourcing and procurement report will help buyers analyze:
- Category spend in the US
- Supplier cost structure in the US
- Margins of suppliers and category cost drivers
Build strategies for effective supplier selection
An understaffed warehousing facility results in service snags such as improper maintenance of goods and delay in inbound, storage, and outbound activities. Therefore, it is advised that before partnering with suppliers, buyers must compare the number of employees that a supplier has with the size of the facility to avail efficient services.
This warehousing 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 US supplier market ecosystem
- Total cost of ownership and category risks
Devise effective category management strategies for warehousing services
Buyers from the retail sector end to face fluctuating demand for warehousing services because of factors such as seasonality of the demand for their products. To tackle such uncertainties, buyers must partner with suppliers who have the requisite capacity to ensure supply for meeting their demand fluctuation requirements. This will also reduce the need to engage with multiple suppliers in an ad-hoc manner, thereby reducing the overall procurement expenditure for buyers.
Key insights offered in this market intelligence report on warehousing services 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
Analyze the regional spend data
The demand for warehousing services is predicted to grow at a faster rate in Europe because of the greater proliferation of the e-commerce industry. According to the experts, western European countries such as UK, Germany, and France claim the majority of the e-commerce sales which indicates the fact that those regions also exhibit the highest category demand. The growing demand for automobiles is driving the growth of the automotive manufacturing industry in regions such as North America, Europe, and APAC. This is also driving the demand for warehousing services from this sector.
To estimate the regional spend potential, this warehousing services procurement research report considers geographies such as:
- North America
- South America
Information on the top warehousing services suppliers and major risks faced while procuring warehousing services 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
Warehousing Services - Category Spend Analysis
According to SpendEdge analysts, one of the key growth drivers for the warehousing services supply market is growing demand for cost savings in managing inventory and finished goods until they reach end customers. In addition, strong demand for warehouses from growing end-user segments such as food and beverages, automotive, and consumer goods will further stimulate the growth of warehousing services.
Warehousing Services – Procurement Best Practices
Buyers engage with suppliers that provide one-stop solutions by bundling warehousing services with transportation and packaging. This allows buyers to negotiate better on the price of services and reduce overall logistics costs and operational risks involved in coordinating with multiple vendors for different services.
Warehousing Services - Procurement Challenges
Based on the analysis in this report, a major procurement pain point experienced by the buyers is the loss of control. To mitigate the challenge, SpendEdge’s procurement specialists predict that it is important for buyers to know the capabilities of suppliers before signing the contract. Buyers must check the supplier's client relationship, which will help identify the capability of suppliers to safeguard goods from external security risks.