Spare Parts Logistics Market in APAC 2017-2021
About Spare Parts Logistics
The spare parts logistics of the manufacturer contains the market-orientated realization, planning, control, and design of the spare parts supply and distribution, with associated information flows between the firm's network partners and within a firm. Spare parts logistics aims at a preventive maintenance of primary products, demand-driven and cost-minimal provision of the required spare parts for the defective, and the need to ensure an optimal level of reliability and availability of the product.
Technavio’s analysts forecast the spare parts logistics market in APAC to grow at a CAGR of 6.47% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the spare parts logistics market in APAC for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Spare Parts Logistics Market in APAC 2017-2021
Technavio recognizes the following companies as the key players in the spare parts logistics market in APAC: CEVA Logistics, DB Schenker, DHL, KUEHNE + NAGEL, and UPS.
Other Prominent Vendors in the market are: Agility, Broekman Logistics, C.H. ROBINSON, DSV, FedEx, Kerry Logistics, Ryder, Rhenus, TVS Logistics, and Yusen Logistics.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is improvements in technology for spare parts logistics. The use of upgraded technologies in spare parts logistics service is likely to increase during the forecast period. The spare parts logistics service providers such as CEVA Logistics, DHL, and KUEHNE + NAGEL have a range of spare parts logistics services such as GPS-enabled transportation trucks for tracking of spare parts in transit, RFID for spare parts inventory control, bar coding, and management information system related services.”
According to the report, one driver in the market is higher profit margins for spare parts than for core vehicle sales. In growing automobile markets such as in the India, China, and Indonesia, the revenue from spare parts business is more than 20% of the total revenue generation of automobile companies. The proper operation of the supply chain for spare parts helps automotive companies reach healthy profit margins when spare parts are sold in aftermarkets as parts are priced 20%-30% higher than spare parts that are attached to the vehicle during its assembly on the production line.
Further, the report states that one challenge in the market is excess cost due to over stocking of spare parts. Stock allocation, inventory control policies, and warehouse localization are of paramount importance in a logistics system. The complexity involved in inventory management of spare parts will have an impact depending on the high critical industries such as the aerospace and to some extent the automotive industry as well. Excessive cost in the range of 5%-10% is involved in stocking the spare parts for longer durations.
CEVA Logistics, DB Schenker, DHL, KUEHNE + NAGEL, UPS, Agility, Broekman Logistics, C.H. ROBINSON, DSV, FedEx, Kerry Logistics, Ryder, Rhenus, TVS Logistics, and Yusen Logistics.
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