Road Freight Procurement Intelligence

Procurement of road freight services, also known as ‘road haulage,’ benefits buyers from several end-use sectors such as agriculture, construction, manufacturing, oil and gas, fishing and forestry, and mining & quarrying. The global market size was estimated at USD 3,912 billion in 2023. Creating a successful, efficient, and secure logistics strategy is crucial for any business that relies on transporting goods. Key benefits of these services include affordability, availability, speed, and flexibility. APAC dominated the global industry, comprising 32% of the global market share in 2023. The rapidly growing e-commerce sector in developing countries, including India and China, has greatly increased the demand in APAC.

Road networks offer extensive coverage, granting access to remote regions. They facilitate flexible scheduling, allowing service providers to adapt to delivery times according to demand fluctuations or urgent needs. Compared to alternative transportation modes (rail or air), this mode demands lower initial investments in infrastructure or specialized vehicles. A few of the key challenges are driver shortages, fuel price volatility, and infrastructure issues. For instance, maintenance or construction projects on key highways or roads disrupt traffic flow, causing delays and detours for freight carriers. Similarly, fuel price fluctuations substantially impact operating costs for service providers, thus affecting their profitability.

Order your copy of the Road Freight category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Key technology trends that are driving the growth of the industry include deployment of electric vehicles (EVs) and autonomous vehicles, use of artificial intelligence (AI) and machine learning (ML), real-time freight visibility and automation, and predictive analytics. For instance, to ensure real-time freight visibility and automation, service providers are deploying advanced technologies, such as real-time tracking systems and the Internet of Things (IoT), to provide precise, real-time information on the location and status of shipments. Similarly, the adoption of predictive analytics has improved the accuracy of demand forecasting, route planning, and risk management in road freight services. It is being used to analyze vast amounts of data on weather patterns, traffic conditions, and historical performance.

Key suppliers in this industry are prioritizing the reduction of their carbon footprint by embracing green technologies and alternative fuels. Key initiatives involve incorporating renewable energy sources for electric vehicles (EVs) and researching alternatives such as bio-LNG and bio-CNG. The objective is to attain decarbonization and adhere to international climate agreements such as the Paris Accord. Moreover, prominent suppliers are placing a strong emphasis on operational efficiency, customer satisfaction, scalability, and strategic partnerships. In terms of the demand landscape, buyers are increasingly focusing on tracking capabilities, reputation, and reliability.

Road Freight Sourcing Intelligence Highlights

• This market consists of a fragmented landscape, with the players engaged in intense competition.
• Buyers have substantial bargaining power due to the ease of switching to alternative service providers.
• India, China, Lithuania, Poland, and Bulgaria are preferred as low-cost or best-cost countries within their relevant regions for sourcing and procurement due to low vehicle costs, cheap labor costs, and favorable government policies.
• The key components of the cost structure involve the cost of vehicles, fuel, labor, technology, licensing and compliance, maintenance and repair, and others. Other costs include safety equipment, general and administrative, rent and utilities, loading and unloading, road taxes and tolls, and marketing and sales.

List of Key Suppliers

• A.P. Møller - Mærsk A/S
• C.H. Robinson Worldwide, Inc.
• CMA CGM Group
• DSV A/S
• Expeditors International of Washington, Inc.
• FedEx Corporation
• J.B. Hunt Transport Services, Inc.
• Knight-Swift Transportation Holdings Inc.
• Kuehne + Nagel International AG
• Landstar System Holdings, Inc.
• Old Dominion Freight Line, Inc.
• United Parcel Service of America, Inc.

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Road Freight Procurement Intelligence Report Scope 

Our services include (not limited to): 

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.