SpendEdge has been monitoring the global road freight transportation services market and the market is poised to experience spend growth of more than USD 700 billion between 2019-2024 at a CAGR of over 4% during the forecast period. Request Free Sample Pages.
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Read the 129-page research report with TOC and LOE on “The Global Road Freight Transportation Services Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
The initiatives that are being taken across regions to develop and fortify road infrastructure will be one of the primary spend driving forces in the global road freight transportation services market. The adoption of hybrid trucks by service providers is improving their acceptability among buyers who are leveraging this partnership to accomplish their own sets of sustainability goals. These factors are impacting spend growth in the road freight transportations services market on a positive note.
The automobile industry in the US is accounting for a high rate of auto components import from Mexico. Such instances of cross-border transport to procure low-price vehicle parts are propelling the demand for road freight transportation services in the region. The strong impetus given by the US government to the local manufacturing industry, most of which are significant end-users of road freight services, is further accelerating the spend momentum.
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Insights into the market price trends
- Road freight transportation service providers are fitting their trucks with low rolling resistance tires. The high costs associated with the procurement of such tires will increase service prices.
- The OPEX of service providers is expected to increase over the forecast period as they are increasing investments in load allocation software, route optimization software, and tracking software. This is expected to increase procurement costs for buyers in the road freight transportation services market.
What are the strategies to adopt to optimize procurement spend in this market?
Engage with service providers who focus on reducing transit time
Buyers are advised to partner with road freight transportation service providers who can reduce transit timelines by investing in technologies such as route optimization and traffic management systems. Such technologies are functional in reducing delivery timelines and consequently, the overall transportation costs.
Include mileage program in contracts
It is prudent of buyers to include a mileage program while entering into a contract with logistics providers. In the mileage program, aspects such as discounts based on mileage, initiatives adopted by service providers for increasing vehicle mileage, and fuel prices are clearly stated. This will allow buyers to attain transparency on pricing. In addition, engaging with service providers who are known to adopt initiatives for enhancing vehicle mileage will provide buyers the opportunity to negotiate for cost-effective prices.
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Some of the key topics covered in this report are:
- Road freight transportation services market spend segmentation by region
- Total cost of ownership analysis in the road freight transportation services market
- Regional spend opportunity for road freight transportation service providers
- Road freight transportation service providers cost structure
- Road freight transportation services pricing models analysis
- Road freight transportation services procurement best practices
- Category management objectives
- Cost saving opportunities in the road freight transportation services market
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