LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global courier express and parcel services market and the market is poised to experience spend growth of more than USD 14 billion between 2019-2024 at a CAGR of over 6% during the forecast period. Request Free Sample Pages.
Read the 129-page research report with TOC and LOE on "The Global Courier Express And Parcel Services Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Buyers from the healthcare sector face the perennial need for an expedited delivery of products such as investigational medical products, clinical supplies, and patient samples. Their growing need will serve as the primary driving force in the courier express and parcel services market. The current global business landscape is marked with an uninhibited cross-border trade owing to the presence of favorable trade policies. This results in an exponential increase in the parcel volumes which continues to supplement spend growth in this market.
In the US, buyers from the automotive market practice 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 results in high demand in the courier express and parcel services market in the US.
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Insights into the market price trends
- Service providers incur an incremental expenditure on technology with the procurement and operation of tracking software, inventory management software, load allocation software, and parcel management tools. They account for a high expenditure to implement parcel management tools that add to their technology-related expenditure. This is expected to have an inflationary impact on the procurement price in the courier express and parcel services market.
- Courier express and parcel service providers are expected to implement advanced parcel management tools such as parcel lockers and technologies, including drones, during the forecast period. The implementation of these techniques will increase service providers' CAPEX.
What are the strategies to adopt to optimize procurement spend in this market?
Negotiate on surcharges that have a higher impact on TCO
Utilization of these services entails several surcharges such as delivery area surcharge and fuel surcharge that can increase buyers’ TCO. Buyers are advised to ask their service providers to list all the surcharges applicable for their services along with their weightage on the overall price during the contract negotiation phase. This will aid buyers to identify surcharges that have the highest impact on prices and ask for waivers or discounts to reduce the ultimate costs for services procured.
Implement zone skipping
Zone skipping is a supply chain technique where buyers consolidate shipments that are later shipped in LTL or FTL modes, depending on volumes, directly to the destination. Parcel carrier charges are based on distance and the number of zones they travel through. Shipments that do not have zone skipping have to travel through multiple zones that lie between their origin and destination. Zone skipping helps to avoid the high cost of multi-zone movements by directly sending shipments to their respective destinations.
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Some of the key topics covered in this report are:
- Courier express and parcel services market spend segmentation by region
- Total cost of ownership analysis in the courier express and parcel services market
- Regional spend opportunity for courier express and parcel service providers
- Courier express and parcel service providers cost structure
- Courier express and parcel services pricing models analysis
- Courier express and parcel services procurement best practices
- Category management objectives
- Cost saving opportunities in the courier express and parcel services market
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