Increasing demand for warehousing, inventory keeping, transportation, and cross-docking has led to an upsurge in demand for the logistics outsourcing. In addition, surge in demand for material management, distribution management, and supply management in the stores and e-business portals is expected to impact growth of the global logistics outsourcing market positively. According to a recently published report by Future Market Insights, the global logistics outsourcing market is expected to register a healthy growth over the forecast period, 2014-2020.
Growing need for transportation, cross-docking, warehousing, and inventory keeping rev up demand for supply chain management globally. In addition, logistic outsourcing services are increasingly integrated in order to provide convenience to the end users. These factors has led to an upsurge in outsourcing logistics by the parent companies. Logistic outsourcing also comprise of channel management and shipment packaging for the e-business stores and portals that are significantly need delivery services and on-clock dispatch that are mainly offered by the providers of the outsourced logistics. Several benefits related to the logistics outsourcing market include improved capability of the supplier attributed to specialization of operations, constant growth, focus on the core competencies, and information technology.
Recent trends witness in the global logistics outsourcing market include on-time delivery, quick response of the transportation services, atomization of the shipments, logistics and just-in-time inventory that are used attributed to adoption of the innovative technology. The technological innovations comprise monitoring and remote tracking due to increasing use of EDI-based location of the shipments and RFID tags. Furthermore, there are constant trend of insourcing by the online retailers for inventories attributed to increasing emphasis on outsourcing for end-product transportation services. In addition, as these services are increasingly cost-effective, demand for the logistics outsourcing is expected to rev up during the forecast period.
On the other hand, increasing risks associated with the reliability on the vendor and limited control over monitoring of the logistics is expected to dip the sales of the logistics outsourcing services in the global market.
Segmentation Analysis: The global market of logistics outsourcing is segmented on the basis of transport media used, service type, and region. On the basis of service type, the global market is segmented as consulting services, simple services, value-added services and combined services. By technology media, the global market is segmented as railways, air freight, trucking and ocean carriers. The global market of logistics outsourcing is segmented on the basis of region as Latin America, North America, Western Europe, Japan, APAC, MEA and Eastern Europe. APAC among other regions is expected to represent a consistent and steady growth through its innovative services, attributed to which the market players are focusing on attracting more customers. Market players are also increasingly focusing on offering integrated services to the end users through which they are focusing on providing a range of services and products. Moreover, with increasing focus on the growing B2C sector, the scope for outsourcing logistics is expected to expand towards the specialized and value-added services.
Market Players: Leading market players operating in the global logistics outsourcing market include Menlo Worldwide Logistics (U.S.), Exel Logistics (U.K.), Ryder Logistics (U.S.), Tibbett and Britten (U.K.) and FedEx (U.S.). Market players continue to have robust presence and provide services for multi-sector.
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