Order fulfillment is the process of receiving, processing, and delivering orders to end customers. A third-party company provides these order fulfillment services on behalf of its customers, such as an online seller. Key order fulfillment services can be categorized into the following broad categories:
- Order receiving
- Inventory storage
- Order processing
- Return processing
The global order fulfillment services market was valued at USD 78 billion in 2020 and it is expected to grow at a CAGR of 10% from 2020 to 2027 due to the rise in the number of online buyers, especially in emerging economies. By service type, shipping is the largest segment in the global order fulfillment industry with more than 40% revenue share followed by warehousing and inbound-outbound services. APAC is leading the global order fulfillment industry with the largest revenue share of over 25% in 2020. The region is expected to continue its dominance during the forecast period due to increasing internet penetration and growth prospect offered by relatively untapped markets in rural areas and tier-2 cities.
Grab your copy, or request for a free sample of the “Order Fulfillment Services Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Cost DriversThere are key components to determine the overall cost of order fulfillment services. These components can be categorized into fixed and variable costs. Fixed costs include setup costs. Variable costs are inbound shipping costs, inventory storage costs, pick and pack costs, custom labeling & order insert fees, kitting costs, outbound shipping costs, returns processing & restocking fees, account management costs, etc. Cost per order refers to the total costs required to fulfill one order, which includes fixed costs that apply to all orders and variable ones that depend on what is being shipped. A customer can obtain the service order fulfillment cost by taking the sum of their shipping costs over a certain period and dividing it by the number of orders they filled within the same period. Majority of the service providers uses a flat-rate pricing model.
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.
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
Browse through Grand View Research’s collection of procurement intelligence studies:
- Molded Pulp Packaging Industry Procurement Intelligence –The global molded pulp packaging market is valued at USD 3.8 billion in 2020 and it is expected to grow at a CAGR of 6% from 2020 to 2027 due to the growing demand for sustainable packaging solutions. APAC is leading the global molded pulp packaging industry with more than 40% share in 2020 followed by North America and Europe. The rising environmental and pollution concerns in the countries like China and India have forced government agencies and organizations to strictly adhere to sustainability strategies, which resulted in a ban on the usage of single-use plastic and increased adoption of biodegradable packaging solutions. The food packaging industry is the leading application segment with a 40% market share and it is expected to generate a high demand for molded pulp packaging during the forecast period.
- Oleochemicals Industry Procurement Intelligence – The global oleochemicals market is valued at USD 19.4 billion in 2020 and it is expected to grow at a CAGR of 7.5% from 2020 to 2027 due to rising consumption of renewable, sustainable, and bio-based chemicals in personal care & cosmetics, food & beverages, pharmaceuticals, and other industries. Personal care and cosmetics is the leading application segment of global oleochemicals market with more than 25% share. APAC holds the highest share of 40% in the global oleochemicals industry. Countries like Indonesia and Malaysia are the major base product producers for oleochemicals. APAC along with being the largest consumer is also the largest producer of oleochemicals and accounts for more than 50% of the global production. Furthermore, the high costs of petrochemical products and shifting preference for eco-friendly products is expected to boost the demand of oleochemicals during the forecast period.
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