SpendEdge has been monitoring the global warehousing services market and the market is poised to experience spend growth of more than $160 billion between 2019-2024 at a CAGR of nearly 6% during the forecast period.
Buyers from the pharmaceutical and food industries are exhibiting an exponential demand for refrigerated warehousing services to store perishable goods. The volume of such perishable goods is perpetually increasing owing to the increase in the online sales of groceries and the development of biologic drugs. This is increasing the scopes of spend growth in the global warehousing services market.
Plans of expansion and the emergence of newer players in the organized retail sector are expected to drive spend growth in the warehousing services market in APAC. Meanwhile, in the US, consumer’s affinity towards buying goods via different online platforms will create demand in the warehousing services market in the region.
Insights into the market price trends
- The supply-demand imbalance in warehousing services will inflate the procurement costs for buyers.
- Factors such as trade tensions between China and the US will result in a significant rise in prices of construction materials such as steel and aluminum which will drive construction costs. This will impact the prices of warehousing services.
What are the strategies to adopt to optimize procurement spend in this market?
Bundling of services
Buyers will benefit from engaging with service providers who provide one-stop solutions by bundling warehousing services with transportation and packaging services. This allows buyers to negotiate better on the price of services and reduce overall logistics costs and operational risks involved in coordinating with multiple vendors for different services.
Attain supply assurance
Buyers from the retail sector will face fluctuating demand for warehousing services because of factors such as seasonality of the demand for their products. To tackle such uncertainties, buyers must partner with warehousing service providers who have the requisite capacity to ensure supply for meeting their demand fluctuation requirements. This will also reduce the need to engage with multiple service providers in an ad-hoc manner, thereby reducing the overall procurement expenditure for buyers.
Some of the key topics covered in this report are:
- Warehousing services market spend segmentation by region
- Total cost of ownership analysis in the warehousing services market
- Regional spend opportunity for warehousing service providers
- Warehousing service providers cost structure
- Warehousing services pricing models analysis
- Warehousing services procurement best practices
- Category management objectives
- Cost saving opportunities in the warehousing services market