Truck Load International Category Procurement Intelligence Report

Several macro changes in the dynamics of overall Transport as well as Truck Load International procurement trends are poised to change the business practices and procurement thumb rules. Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Truck Load International suppliers who will be forced to pass on a part of this increase to their buyers.

Suppliers are increasingly adopting a demand-driven planning of their assets and resources to reduce costs and optimize operational efficiency. Part of the cost savings are passed on to buyers, but this also creates supply chain risks for them that need to be managed jointly with the supplier.

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.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

Truck Load International procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with Truck Load International procurement strategy.

For example, Buyers must track suppliers' quality management systems to ensure that the products are stored in a hygienic environment and have almost zero probability of occurrence of damages. This is particularly critical for buyers in industries such as food and beverages and pharmaceutical.

Buyers should enter in long-term partnerships and collaborative relationships with service providers to benefit from economies of scale and reduced cost. Long-term contracts are established to avoid renewal costs and avoid time spent on renegotiation.

Buyers need to discuss business goals and strategic imperatives with service providers to understand their mode of operation and establish control over important parameters of the supply chain.

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