Fourth-Party Logistics (4PL) Procurement Intelligence: Driving Business Growth
Fourth-Party Logistics (4PL) Procurement Intelligence: Driving Business Growth
The 4PL category is anticipated to grow at a CAGR of 6.9% from 2023 to 2030. North America accounts for the largest share.

The 4PL category is anticipated to grow at a CAGR of 6.9% from 2023 to 2030. North America accounts for the largest share. Factors such as the increasing growth in online shopping and the e-commerce sector, the rising need for efficient warehouse management systems, automated order fulfillment, inventory and returns management systems, and enhanced post-purchase and payment systems are driving the growth of this category. One of the key trends is the increasing use of robotic picking arms and vision systems in large warehouses to reduce errors and boost productivity.

For example, many 4PL companies are using robots to pick and pack orders, while Automated Guided Vehicles (AGVs) are being used to move goods around warehouses and large distribution centers. Collaborative robots (cobots) are used for lifting heavy-duty operations and repetitive tasks. Many cobots are also equipped with IoT sensors that can monitor the health, blood pressure, and temperature of warehouse workers. In the technology space, cyber 4PL is the latest emerging trend. Cyber 4PLs are specialist logistics providers that offer multiple systems integration, adaptive digital platforms, and advanced analytics in addition to supply chain consultancy solutions. Their intellectual property is the mix of assets with software algorithms that they can deploy across the supply chain to effectively generate critical insights.

Companies generally adopt a cost-plus or a gain-share model pricing while engaging with 4PL service providers. The cost-plus model is a pricing strategy where the 4PL service provider charges the client for the actual costs incurred in managing the logistics operations, along with an additional markup or fee. On the other hand, the gain-sharing model is a collaborative pricing approach where the 4PL and the client share the benefits or savings achieved through improved supply chain performance or cost reductions. The choice between the models depends on specific requirements and preferences.

Order your copy of the Fourth-Party Logistics (4PL) Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

In the European region, in 2022, road transportation prices have increased by 10 - 15% due to soaring fuel costs, high inflation, the global supply chain crisis, and a tight supply of goods. Since 2021, fuel prices have increased significantly in Germany, Italy, the U.K., and France which have in turn impacted transportation and 4PL service costs. For instance, in Germany, diesel prices in Q3 2021 increased by 38% compared to 2020. Similarly, during the same period, diesel prices in France, Italy, and the U.K. increased by 23.5%, 20.6%, and 26.6% respectively. Road transport prices are also getting impacted by truck shortages and labor shortages amid very high demand for trucking services. For instance, in Spain, there is a shortage of 10,000 and 15,000 professional drivers in Spain. In France, there is a shortage of between 40,000 - 50,000 drivers and Germany lacks 65,000 drivers. 

4PL Category Procurement Intelligence Report Scope 

4PL Category Growth Rate (CAGR): CAGR of 6.9%, from 2023 to 2030

Pricing growth Outlook: 6 - 10%

Pricing Models: Cost plus pricing model, gain share pricing model

Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence

Supplier selection criteria: Service offerings (end-to-end services, warehousing, transportation, shipping, distribution, packaging), technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.

Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Browse through Grand View Research’s collection of procurement intelligence studies:

Supply Chain Insurance Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Advanced Driver Assistant System (ADAS) Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Key companies profiled

XPO Logistics

DHL Supply Chain

UPS Supply Chain Solutions

DB Schenker

CEVA Logistics

GEFCO Group

DSV Panalpina

Geodis

C.H. Robinson

FedEx Corporation

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

Market Intelligence involving – market size and forecast, growth factors, and driving trends

Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

 
disclaimer

What's your reaction?

Comments

https://www.timessquarereporter.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!

Facebook Conversations