Pallet Leasing Services Category Procurement Intelligence Report

Business practices within Pallet Leasing Services market are heavily influenced by changing trends across the category as well as within the broader Warehousing and Storage market. Businesses are focused on maintaining a lean inventory of raw materials, parts, components and finished goods. While it is a novel concept to keep the inventory costs in check, it also highly challenging to implement in a global sourcing context and requires a clock work like optimization of logistics and warehousing processes. Companies are moving to a completely digital supply chain footprint to reduce errors and risks associated with such strategies.

Service providers have begun to use advanced technologies and tools such as loT, predictive analysis and big data for optimal asset utilization, geofencing, warehouse management, and smart inventory management. The efficiencies gained by using new technology and improvement in customer service capabilities are significant. More and more suppliers are moving towards adopting these technologies to realize significant efficiency gains in the longer run, however, it may also increase their OPEX in the short run.

Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Pallet Leasing Services suppliers who will be forced to pass on a part of this increase to their buyers.

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

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Pallet Leasing Services category procurement. The report offers a succinct analysis of Pallet Leasing Services procurement best practices.

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.

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.

Buyers prefer to engage with service providers that offer robust technological systems and leverage Internet-based systems to reduce cost and simplify visibility across the supply chain. Buyers should also assess the integration capabilities of software platforms offered by service providers to ensure that there are no additional costs incurred for software implementation.

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