Global procurement market intelligence advisory firm, SpendEdge, has announced the release of their 'Distribution Services Procurement Research Report.' The insights and data in this report provide an in-depth strategic analysis of the supply markets, factors influencing purchasing decisions, procurement best practices, pricing models, supplier landscape, and an analysis of the supplier capability matrix for the logistics, warehousing, and transportation industry. This report breaks down the data and analysis behind the procurement of distribution services and acts as an all-inclusive guide for making smart purchasing decisions.
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Global Distribution Services Procurement Market Intelligence Report (Graphic: Business Wire)
"The growth of outsourcing of distribution services is triggered by complexities in handling the vast geographic presence of supply chain operations driven by globalization," says SpendEdge procurement research analyst Tridib Bora. "The increasing need for faster speed-to-market has increased the need for such distribution services," added Tridib.
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Key Report Features
|Supply Market Insights||Negotiation Strategies|
|Procurement Best Practices||Category Risk Analysis|
|Cost Saving Opportunities||Key Supplier Analysis|
|Pricing Models||Supplier Capability Matrix|
- The growth of the e-commerce industry is attributed to firms' requirement to increase the level of customer service provided, which is the primary factor that drives the growth of the global distribution services market. It also facilities the need for value-adds such as door-to-door delivery and product packaging.
- Purchasing managers must collaborate with suppliers that make use of ERP implementation to meet multi-departmental requirements and streamline process flows. This will benefit in ways such as visibility over inventory, complex order management abilities such as POS orders, web orders, and sales quotes, and configurable workflows.
- Most of the third-party distribution services providers offer a large portfolio of services, catering to a wide set of requirements. However, purchasing managers find it difficult to understand suppliers' expertise in addressing niche requirements.
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Distribution Services Pricing Trends
The transaction-based pricing is the most widely adopted pricing model in the global distribution services market. It is easy to understand and implement and offers transparency in fees. Moreover, it is beneficial when dealing with shipment volumes that have standard specifications.
However, cost-plus management pricing is more effective and has a higher potential compared to the transaction-based pricing model. It facilitates accurate cost estimation and is preferred when business volumes are stable and contract periods are established. Furthermore, it incurs lesser costs due to recurring payments.
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