The global freight payment services market was valued at almost USD 19 billion in 2016 and is expected to reach around USD 29 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on freight payment services for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the freight payment services market during the forecast period. Some of the top vendors listed in this industry analysis include DHL, Kuehne + Nagel, DB Schenker, Nippon Express, and C.H. Robinson.
In terms of geographical analysis, APAC accounted for around 31% of the overall market share to become the key revenue contributing geographical segment of the global freight payment services market during 2016. China, Singapore, Hong Kong, Japan, and India are the key revenue contributors in the freight payment services market in APAC.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “Shippers in the market are building in-house software and teams to handle freight payments with the intention to reduce cost and keep the confidential payment data within the organization. More than 35% of shippers worldwide are returning to insourcing multiple logistics such as freight payments, audit services, and order management and fulfillment. In-house payment software makes it possible to increase the shipper’s management control on freight payment solutions.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Rising complexities in global freight management
Spurred by rapid globalization, freight services are required to cater to players based out of multiple locations maneuvering across different customs and changing freight rates. Shippers are increasingly expanding their supply chains to multiple locations leading to increased expectations of consistent freight audit and payment across locations. This, in turn, results in the requirement for freight payment service providers to expand their business operations from domestic markets to global market to cater to the increasing complexities of their supply chain.
Advances in technological solutions
Freight payment service providers are focusing on the enhancement of the tools they offer to help shippers make optimum use of freight payment data, TMS, supply chain optimization, and benchmarking services for logistic operations. Many players in the market are improving their analytics and BI tools, which will help shippers to calculate total landed cost, perform ad-hoc queries, and generate drill down report by analyzing all the payment invoices. Such developments enable shippers to optimize networks by selecting the best routes for their shipments based on rate, service, mode, and other criteria.
Increasing sub-contracting across logistic industry
A large number of manufacturers and retailers across multiple industries are increasing focus on their core business operations to enhance business capabilities. As a result, players are outsourcing the ancillary parts of the supply chain such as transportation services, supply chain management, warehouse management, and payment services to improve the efficiency in their core area of business. For instance, Nippon Express, a global logistics company, provides solutions such as supply chain management, warehouse management, information portable, and payment services to players using different modes of transportation across multiple industries
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Freight Payment Services – Procurement Market Intelligence 2017’.
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