Contract Logistics Market in South America 2015-2019
About contract logistics
Contract logistics is the outsourcing of various elements of logistics and distribution by companies to third-party logistics solutions providers. Companies outsource some or all of their SCM functions such as transportation, warehousing, location tracking, and integration operation services. Often, third-party logistics solutions providers go beyond logistics and offer VAS such as inventory management, cross-docking, door-to-door delivery, and packaging of products. The need for efficiency in delivery, inventory management, and freight forwarding is propelling the demand for contract logistics in South America.
Technavio's analysts forecast the contract logistics market in South America to grow at a CAGR of 6.92%, in terms of revenue, over the period 2014-2019.
Covered in this report
This report covers the present scenario and the growth prospects of the contract logistics market in South America for the period 2015-2019. To calculate the market size, this report includes the revenue generated by contract logistics service providers, excluding the revenue generated from the sea and air logistics. It provides data on the different segments of the market based on the following: services outsourced and industry serviced.
Technavio's report, Contract Logistics Market in South America 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects in the coming years. The report includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Contract Logistics Market in South America 2015-2019
Technavio recognizes the following companies as the key players in the Contract Logistics Market in South America: Ceva Logistics, Deutsche Post DHL, Kuehne + Nagel, Penske Logistics, Servientrega and TCI
The other prominent vendors are: Agility, América Latina Logística, APL Logistics, BDP International, BLG Logistics Group, DACHSER, Damco, DC Logistics, DSV, Expeditors International, FedEx Supply Chain, Imperial Logistics, JSL, Kerry Logistics, Logwin, Menlo Worldwide Logistics, Neovia Logistics Services, Panalpina, Ryder, SDV Logistics, Sinotrans, UPS and Wincanton
Commenting on the report, an analyst from Technavio’s team said: “The development of trade in South America through digital platforms has led to an upsurge of data. The internet has served as a powerhouse for data collection, and the industry needs solutions and analytics experts to mine this data and generate information to enhance business productivity. Big data analytics in SCM help to identify the grey areas of the supply chain process, and allow companies to analyze and develop new solutions for their customers. Logistics vendors in South America collect data using cloud-based technologies such as TMS, CRM solutions, RFID readers, and WMS solutions. Big data analytics in logistics help to define optimal shift planning in retail stores, utilize data to predict crime hotspots, and provide analysis for customer retention and inventory planning.”
According to the report, the outsourcing of logistics provides the advantage of leveraging the expertise of contract logistics providers, and consumes less time and resources. This results in the optimization of business networks and improves supply chain performance. Initially, logistics functions were handled in-house, as businesses preferred to exercise direct control over these functions and minimize risk. However, with the business landscape becoming increasingly complex and competitive, customers are shifting their focus toward their core businesses. Various companies are concentrating their capital and resources on improving the efficiency of their core businesses, compelling businesses to shift their focus toward contract logistics service providers. Shippers achieve substantial savings by avoiding expenses related to warehousing, vehicles, and machinery.
Further, the report states that fluctuation in transportation costs in different regions poses a challenge to contract logistics providers.
Ceva Logistics, Deutsche Post DHL, Kuehne + Nagel, Penske Logistics, Servientrega, TCI, Agility, América Latina Logística, APL Logistics, BDP International, BLG Logistics Group, DACHSER, Damco, DC Logistics, DSV, Expeditors International, FedEx Supply Chain, Imperial Logistics, JSL, Kerry Logistics, Logwin, Menlo Worldwide Logistics, Neovia Logistics Services, Panalpina, Ryder, SDV Logistics, Sinotrans, UPS, Wincanton
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