Logistics Outsourcing Market
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Global <strong>Logistics</strong><br />
<strong>Outsourcing</strong> <strong>Market</strong><br />
Share, Global Trends,<br />
Analysis, Research, Report,<br />
Opportunities,<br />
Segmentation and Forecast,<br />
2014-2020<br />
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Report Description<br />
<strong>Logistics</strong> outsourcing, most commonly known as third-party logistics is a process or<br />
operation of sub-contracting industrial functions like cross-docking, inventory keeping,<br />
warehousing and transportation to a third party or supply chain management provider.<br />
Third party logistics providers include raw material suppliers, distributors and other<br />
value-added service providers. These services are generally integrated and used together<br />
to provide end-user convenience. The decision for outsourcing logistics by a parent<br />
company is generally dependent on company size, complication of logistics and relative<br />
economic benefits of outsourcing.<br />
<strong>Logistics</strong> outsourcing includes contracting of material management, supply chain<br />
management, distribution management, shipment packaging and channel management.<br />
E-business web portals and stores are in extensive need of on-clock dispatch and delivery<br />
services offered by outsourced logistics providers. The advantages associated with the<br />
logistics outsourcing market are – improvement of supplier’s capability due to the use of<br />
information technology, specialization of operation, focus on core competencies and<br />
uniform growth. However, lack of monitoring control over logistics and risks associated<br />
with vendor reliability are some of the drawbacks of this market.<br />
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Report Description<br />
Regions across the globe with an attractive logistics outsourcing market, in terms of<br />
contract logistics, include North America and Southeast Asia. RoW (Rest of the World) is<br />
showing growth in inter-regional logistics. Major factors driving the development of<br />
logistics outsourcing market are globalization, time-proportional economy, presence of<br />
virtual organizations, improved customer awareness, strategic concerns to achieve more<br />
flexibility and better IT infrastructural support. On the other hand, loss of logistics, poor<br />
transportation, local protection regulations and lack of post-outsourcing measurements<br />
are some of the factors hampering growth of this market.<br />
The global logistics outsourcing market is segmented on the basis of service type,<br />
transport media used and geography. The market can vary in service type as simple<br />
service, combined service, consulting service and value-added service. On the basis of<br />
transport media used to handle logistics, it can be classified into air freight, ocean<br />
carriers, railways and trucking. The market can be categorised on the basis of geography<br />
into North America, Latin America, Asia-Pacific, Japan, Western Europe, Eastern Europe<br />
and Middle East & Africa.<br />
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Report Description<br />
Globalized product availability, demand for product individualization in terms of logistics,<br />
on-time delivery, just-in-time inventory, agility in time response transport, big data<br />
analytics and atomization of shipment are some of the global market trends guided by<br />
technological innovations like remote tracking and monitoring using RFID tags and EDIbased<br />
location of the shipment. Analytics based on big data is providing better accuracy<br />
of frequency of tasks and decision-making capabilities. There is a continuous insourcing<br />
trend by online retailers (like Amazon.com) for inventory so as to be more cost-effective<br />
and unified in terms of operations, and to emphasize on outsourcing for end-product<br />
transportation services only. These technological up gradations continuously enhance<br />
services provided by outsourced logistics providers.<br />
Exel <strong>Logistics</strong> (U.K.), Menlo Worldwide <strong>Logistics</strong> (U.S.), FedEx (U.S.), Ryder <strong>Logistics</strong> (U.S.)<br />
and Tibbett and Britten (U.K.) are some of the key outsourced logistics providers. These<br />
companies have a wide global presence and provide multi-sector services. They are<br />
continuously trying to reach influential market and customers by means of removing<br />
bottlenecks related to international shipments and reducing cost through geographical<br />
spread of inventory. The market in Asia-Pacific region shows a steady and consistent<br />
growth through service innovations by companies, so as to attract economic customers.<br />
The companies need to shift their focus from integrated services to offering broad range<br />
of products & services portfolio. With more focus on growing B2C sector, the scope for<br />
logistics outsourcing will extend towards value-added and specialized services.<br />
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