Specialty Courier Services | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to Specialty Courier Services Procurement

Overview

The market for Courier and its sub-segments such as Specialty Courier Services are at an interesting intersection. As a smaller indirect spend category, has largely escaped the intense scrutiny and analysis that procurement functions extend to most direct spend categories. However, some of the suppliers have begun to offer intelligent solutions to procure and analyze expenditure on each of the items so that effective budgeting can be done. Given the trend, more vendors are expected to offer such tools to buyers.

Recent advances in information technology and online commerce have allowed buyers to increasingly utilize e-auctioning as a mechanism to reduce costs across the value chain. E-auctioning allows buyers to reduce the procurement lead times, increase their supplier base and connect with sellers and intermediaries simultaneously.

Service providers are incurring incremental expenditure on technology with the procurement and operation of advanced technologies and software to improve efficiencies and better serve the customers. Increasing technology-related expenditure is expected to have an inflationary impact on the procurement price offered to the buyers.

Trends like these and many others discussed in this report are necessitating a relook at the way Specialty Courier Services is procured and the procurement cost saving opportunities that exist.

Specialty Courier Services Procurement Best Practices

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Specialty Courier Services. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers should proactively manage relations with Specialty Courier Services suppliers and have pre-determined intervention criteria for onboarding or replacing a supplier, changing specifications or terms and conditions.

From office furniture to envelops, scope for customization is everywhere. Buyers prefer suppliers that have the capabilities to customize solutions as per the specifications they provide.

Buyers are implementing dual-carrier strategy while engaging with an international player along with a regional supplier. Dual-carrier strategy is preferred to reduce the dependence on a single provider or a specific type of technological solution. It can also provide the freedom and choice to respond to falling service levels and price changes quickly. Competition between suppliers also results in preferential costs, terms and services.

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Risks in Specialty Courier Services procurement

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

Suppliers may face a situation where they are unable to honor a contract in its entirety due to shortage of resources, finances or capabilities. While contractual terms safeguard buyers from the non-performance, their operations could still face massive disruptions due to suppliers' non-performance
When requirements of the buyers are not absolutely clear or usage patterns are not stable or predictable, suppliers often build in \"cost buffers\" for unforeseen risks due to a lack of complete understanding on buyer's requirements. This increases the risk of overspending on Specialty Courier Services
Contract-related risks where unfavorable credit terms may severly penalize buyers for delayed payments or entitle the supplier to demand pre-payments or shorten the payment terms are not very common in the category but they do exist in certain situations where buyers' liquidity or financial health is in question

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Who should read this report

The report is intended to serve as a one-stop reference guide for Specialty Courier Services procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “Specialty Courier Services: Procurement Report 101” as well as for category experts actively tracking the global Specialty Courier Services procurement market.

You may have just initiated your research to design a winning Specialty Courier Services procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on Specialty Courier Services procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The Specialty Courier Services procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the Specialty Courier Services market?
What is the correct price to pay for Specialty Courier Services? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Specialty Courier Services Suppliers Market?
Who are the top Specialty Courier Services suppliers? What are their cost structures?
Which negotiation levers can reduce Specialty Courier Services procurement cost ?
What are supplier margins in Specialty Courier Services market?
What are the best practices for Specialty Courier Services procurement and what are the potential risks?

SpendEdge Insights has helped procurement professionals and sourcing teams manage multiple spend areas and achieve more than $2 billion in savings. Activate your free account today!

Specialty Courier Services Category Insights: What is inside

The Specialty Courier Services market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on Specialty Courier Services procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Specialty Courier Services. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on Specialty Courier Services market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the Specialty Courier Services category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of Specialty Courier Services procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.