[May 26, 2017] |
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Technavio Reveals Cost Saving Opportunities for the Material Handling Services Market
According to the latest procurement intelligence report from Technavio,
the global
material handling services market is expected to grow at
a CAGR of almost 8% over the next five years due to the growth of the
manufacturing sector.
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Technavio has published a new report on the global material handling services market from 2017-2021. (Graphic: Business Wire)
The research report titled 'Global
Material Handling Services Market: Procurement Intelligence Report
2017-2021' provides an in-depth analysis of category spend, best
procurement practices and cost saving opportunities, aimed at helping
organizations achieve superior business performance. The report also
provides insights on pricing, supplier positioning, and top companies,
enabling sourcing professionals to improve their competitive advantage
through procurement excellence.
"The global economic growth directly stimulates trade movements
across countries, backed by an increase in manufacturing activities and
product consumption. Many buyers across the world invest in material
handling systems and services that can increase the cost-effectiveness
of operations in the long-term," says lead Technavio procurement
specialist Angad Singh for category
spend intelligence. "Buyers and material handling service
providers are focusing on major concerns such as the need to meet
regulatory requirements, integration of material handling process across
various parts of the supply chain, and ensuring sustainability,"
added Angad.
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Cost Saving Opportunities in Material Handling Services
The adoption of cost optimization levers helps buyers of material
handling services achieve category management and value benefits,
including a reduction in procurement complexities.
Technavio procurement experts have segmented the cost saving
opportunities in the material handling services market into the
following value-enhancement opportunities:
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Adoption of technology
-
Supplier Competition
-
Adoption of negotiation strategies
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Optimization of procurement practices
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Bundling of services
Adoption of technology saving aspects
Temporary storage and sortation system are used to reduce manual
intervention and the timely retrieval of materials based on production
schedules.
Voice-directed picking relies on communication based on voice
instructions through headphones and microphones rather than using
conventional paper lists and wireless terminals. Intelligent software
involves the utilization of WMS and WCS system that enhances the
visibility and efficiency of material handling operations.
View our subscription bundles to discover more cost saving
opportunities: Request
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Optimization of procurement practices saving aspects
LCC analysis refers to the economic evaluation of a product or service
by analyzing the initial and operating costs throughout its lifetime to
assess the TCO. Buyers should evaluate the LCC for implementing material
handling solutions as the operating cost can be more than that of the
initial costs, thus affecting the profitability of the system.
Buyers should procure material handling services that are relatively
eco-friendly and help in enhancing sustainability practices. The process
of material handling can be enhanced by automating the processes. Hence,
buyers need to evaluate the technological capabilities of the supplier
including the use of RF devices and other automated systems in their
solutions.
Bundling of services saving aspects
Successful implementation of a material handling system is dependent on
the buyers' ability to use the system, which necessitates training the
workforce for handling the implemented systems. Hence, buyers should
engage with suppliers that train the workforce for appropriate use of
systems.
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About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
If you are interested in more information, please contact our media team
at [email protected].
View source version on businesswire.com: http://www.businesswire.com/news/home/20170526005682/en/
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