About Logistics Outsourcing
Logistics outsourcing is defined as the strategic use of outside parties to perform activities traditionally handled by internal staff and resources. This logistics outsourcing saves time as well as money as the third-party logistics companies provides expertise which adds value. This strategy provides time on other aspects such as customers, products, and business. In addition, the outsourcing reduces the labour risks and financial risk of an investment in property, equipment, and transportation. Hence, these benefits are increasing the market growth.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The companies are now exploring the market by adopting mergers & acquisitions, expansions, investments, new developments in existing products and collaborations as their preferred strategies. The players are also exploring new geographies and industries through expansions and acquisitions so as to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that United States Manufacturers will contribute the maximum growth to Global Logistics Outsourcing market throughout the forecasted period. Established and emerging Manufacturers should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Exel Logistics (United Kingdom), Menlo Worldwide Logistics (United States), FedEx (United States), Ryder Logistics (United States), Tibbett and Britten (United Kingdom), Allyn International Services, Inc. (United States), Logistics Bureau Pty Ltd. (Australia), Tompkins International (United States), Cogneesol (United Kingdom) and GEP (United States) are some of the key players that are part of study coverage. Additionally, the Manufacturers which are also part of the research coverage are Sumasoft (India), Maxtech Data House Pvt. Ltd. (India) and Others.
Segmentation Overview
AMA Research has segmented the market of Global Logistics Outsourcing market by and Region.
On the basis of geography, the market of Logistics Outsourcing has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Transport media, the sub-segment i.e. Air freight will boost the Logistics Outsourcing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Shipment type, the sub-segment i.e. LTL will boost the Logistics Outsourcing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Industry vertical, the sub-segment i.e. Healthcare will boost the Logistics Outsourcing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Service type, the sub-segment i.e. Simple service will boost the Logistics Outsourcing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Advancements in Information Technology and Transportation
Market Growth Drivers:
Rising Trade Related Agreements is Fuelling the Market and Benefits Such as Cost-Effectiveness, Time Saving, and Others
Challenges:
Lack of Monitoring and Control Over Logistics
Restraints:
Risks Associated with Vendor Reliability
Opportunities:
Strategic Concerns Over More Flexibility and Better IT Infrastructural Support and Globalisation is Boosting the Market
Market Leaders and their expansionary development strategies
In August 2019, FedEx has agreed to acquire Cargex which is an international freight forwarding company. This acquisition will help to have access to larger global network, allowing them to help customers reach even more markets around the world.
In September 2020, DHL has launched a procurement outsourcing service. It is designed to help public and private sector organisations across the world. It helps to achieve substantial cost-savings through transformation sourcing of products and services
Key Target Audience
Logistics outsourcing service providers, Logistics company, Manufacturing company, Government associations, Research organisations, Enterprise software vendors and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.