Crating & Containerization Services Category Procurement Intelligence Report

Business practices within Crating & Containerization Services market are heavily influenced by changing trends across the category as well as within the broader Warehousing and Storage market. Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Crating & Containerization Services suppliers who will be forced to pass on a part of this increase to their buyers.

Managing the logistics risks and building a resilient supply chain has taken the centerstage among corporate priorities. Companies are investing heavily to be able to detect disruptions in time and respond in a manner which does not put the core operations at risk. All suppliers within the ecosystem are expected to play their part and embrace the processes, tools and technologies that their customers have implemented to build a resilient supply chain.

Cyber security has emerged as a top priority within logistics and supply chain ecosystems. New accountability standards are emerging for the way suppliers and buyers collaborate and protect sensitive information and assets.

As a result, category managers need to closely monitor the Crating & Containerization Services procurement trends and identify changes required in their procurement environment for the category.

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Crating & Containerization Services procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, It is important for category managers to track and measure supplier performance against a defined set of KPIs that are agreed upon by both parties during contract negotiation, including inventory accuracy, dock-to-stock, and on-time shipment. This is critical to ensure the optimal level of service. Suppliers' performance can also be linked to a part of their fee, which can be paid depending on the level of services rendered.

It is important that buyers assess the operating model of service providers to determine the best-fit case for their organizations. Buyers need to determine if services offered by the providers are comprehensive and involve adequate resource support and a well-defined customizable execution plan.

Buyers should assess service providers' capability of predicting the weather, traffic, and other real-time information, which might affect shipments that are in transit or in its delivery times.

Crating & Containerization Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Crating & Containerization Services procurement. Some examples include: