Globalization and Presence of Virtual Organizations to Drive Logistics Outsourcing Market

QYResearchReports has added a new report, titled “Global Logistics Outsourcing Market Size, Status and Forecast 2022.” Logistics outsourcing, most commonly known as third-party logistics is a process or operation of sub-contracting industrial functions like cross-docking, inventory keeping, warehousing and transportation to a third party or supply chain management provider. Third party logistics providers include raw material suppliers, distributors and other value-added service providers. These services are generally integrated and used together to provide end-user convenience. The decision for outsourcing logistics by a parent company is generally dependent on company size, complication of logistics and relative economic benefits of outsourcing.

Logistics outsourcing includes contracting of material management, shipment packaging, supply chain management, channel management, and distribution management. The stores and e-business web portals have a great need for on-clock dispatch and delivery services, and these services are offered by outsourced logistics providers. The improvement of supplier’s capability on account of the use of IT, focus on core competencies, striving to achieve uniform growth, and specialization of operation are some of the benefits of logistics outsourcing.

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The global logistics outsourcing market is driven by globalization, presence of virtual organizations, time-proportional economy, and improved customer awareness. Some of the other factors boosting the market for logistics outsourcing include better infrastructural support and strategic concerns to gain enhanced flexibility. The report not only discusses growth drivers but also the growth impeders. The impact analysis of both driving and restraining factors is also done and presented in the study.

The demand for product individualization in terms of logistics, globalized product delivery, on-time delivery, just-in-time inventory, atomization of shipment, big data analytics, agility in time response transport, and data analytics are fast becoming global trends that are taking roots on account of technological innovations such as EDI-based location of the shipment and remote tracking and monitoring using RFID tags. Big data analytics is offering higher accuracy of frequency of tasks and decision making abilities. Another trend of continuous in sourcing by online retailers such as for inventory so as to be unified in terms of operations, be cost effective, and for emphasizing on outsourcing of end production transportation services. Such technological up gradations help in enhancing services offered by outsourced logistic providers.

Some of the leading factors hampering the growth of the global logistics outsourcing market are: local protection regulations and poor transportation. The lack of post-outsourcing measurements will also act as a challenge and will dissuade the market’s growth from reaching its fullest potential. A lack of monitoring control over logistics will also be an issue. The risks associated with vendor reliability are also a challenge for this market.

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The report segments the global logistics outsourcing market on the basis of type, application, and geography. On the basis of type, the global logistics outsourcing market can be segmented into material management, distribution management, supply chain management, shipment packaging, and channel management. By application, the market for logistics outsourcing is segmented into highway transportation, air transportation, railway transportation, and sea transportation.

On the basis of geography, the market is segmented into Asia Pacific, Europe, North America, and the Middle East and Africa. The market is anticipated to show steady growth in Asia Pacific on account of service innovations by companies, which in turn attracts many economic customers. Leading players are shifting their focus on broadening their product portfolio and service portfolio, rather than focusing on offering integrated services. With an increase in the focus on the expanding B2C sector, the scope of logistics outsourcing will include specialized and value-added services.

List of Tables and Figures

Figure Logistics Outsourcing Product Scope
Figure Global Logistics Outsourcing Market Size (Million USD) (2012-2017)
Table Global Logistics Outsourcing Market Size (Million USD) and Growth Rate by Regions (2012-2017)
Figure Global Logistics Outsourcing Market Share by Regions in 2016
Figure United States Logistics Outsourcing Market Size (Million USD) and Growth Rate by Regions (2012-2017)
Figure EU Logistics Outsourcing Market Size (Million USD) and Growth Rate by Regions (2012-2017)
Figure Japan Logistics Outsourcing Market Size (Million USD) and Growth Rate by Regions (2012-2017)
Figure China Logistics Outsourcing Market Size (Million USD) and Growth Rate by Regions (2012-2017)

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