|[March 14, 2017]
Technavio Reveals Cost Saving Opportunities for the Order Fulfillment Services Market
According to the latest procurement intelligence report from Technavio,
order fulfillment services market is expected to grow at a CAGR
of almost 6% over the next five years as online retailers are
increasingly trying to improve their profitability and time to market,
which are considered the revenue drivers for the order fulfillment
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Technavio has published a new report on the global order fulfillment services market from 2017-2021. (Graphic: Business Wire)
The research report titled 'Global
Order Fulfillment 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.
"Outsourcing of order fulfillment has become increasingly common for
smaller e-retailers and marketplace sellers," said lead Technavio
procurement expert Angad Singh. "Some large retailers such as Amazon
have started to bring the service back in-house, which was originally
outsourced in the beginning, recognizing the importance of order
fulfillment strategy to their proposition," added Angad.
Request a sample report: http://www.technavio.com/request-a-sample?report=56123
Technavio sample reports are free of charge and containmultiple
sections of the report including the market size and forecast, drivers,
challenges, trends, and more.
Cost saving opportunities in the order fulfillment services market
The adoption of various cost optimization levers helps buyers of order
fulfillment services realize cost savings and achieve category
management and value benefits (including reduction in procurement
Technavio procurement experts have segmented the cost saving
opportunities in the order fulfillment services market into the
following value-enhancement opportunities:
Adoption of technology
Adoption of negotiation strategies
Optimization of procurement practices
Bundling of services
Adoption of technology saving aspects
Suppliers are utilizing robots to automate material handling in
warehouses and reduce the human effort required. For instance, Fetch
Robotics has developed a mobile base and a mobile picking robot to pick
the items in the warehouse and place them in order.
Drones are unmanned aerial vehicles that are controlled either remotely
or programmed to fly on a particular path. Order fulfillment companies
use drones to deliver small packages to the customers, which helps the
suppliers reduce a significant amount of transportation costs.
Optimization of procurement practices saving aspects
Service providers are increasingly automating complex manual processes,
especially in the warehouse management to enhance efficiency.
Buyers look for suppliers with cloud-based technological capabilities to
lower costs and an integrated platform for managing several fulfillment
functions such as warehousing, transportation, and packaging.
Bundling of services saving aspects
Category managers should look for service providers that offer inventory
optimization tools such as in-transit visibility, which will help buyers
to check bottlenecks and take immediate remedial measures to avoid
For instance, the use of multi-echelon inventory optimization helps
streamline inventory, calculate ideal stocking location, and calculate
size of inventory buffer.
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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.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170314006109/en/
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