LONDON--(BUSINESS WIRE)--According to the latest procurement intelligence report from Technavio, the global warehousing services market is expected to grow at a CAGR of nearly 6% over the next five years owing to the rising demand from various industries such as manufacturing, pharmaceutical, and healthcare.
The research report titled ‘Global Warehousing Services Market: Procurement Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“Both buyers and suppliers of warehousing services focus on major concerns such as regulatory requirements, compliance, and sustainability measures to avoid legal enforcements and meet industry standards to reduce costs and improve service levels,” says lead Technavio procurement expert Angad Singh. “Buyers avail warehouse services from a third-party logistics supplier to continue their operations more smoothly and without delay,” adds Angad.
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Cost saving opportunities in the warehousing services market
The adoption of various cost optimization levers allows buyers of warehousing services to realize direct cost savings as well as enhance category management and value benefits (including reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the warehousing services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Technologies such as barcode is a machine-readable data that consists of a description about the object that carries a barcode.
Many organizations are making heavy investments in robotics as they provide multiple advantages throughout the order fulfillment process in warehouses. By using robots, suppliers can increase the speed of their operations and improve service quality by reducing human errors.
Optimization of procurement practices saving aspects
Buyers prefer to engage with global suppliers. However, if suppliers do not have warehouses near to the delivery destination, they may engage with regional suppliers that have warehouses near to the end-customers.
Therefore, it is necessary for suppliers to have a preferred set of regional players as well to maintain an optimum mix of both regional and global players.
Bundling of services saving aspects
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.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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