The South Africa Contract Logistics Market is expected to reach US$ 782.2 million in 2027, registering a CAGR of 4.6% during the forecast period 2019-2027

 

Contract logistics has become essential for retailers owing to growing e-commerce. The companies are trying to achieve online and omnichannel strategies; thus, contract logistics is necessary for retailers. Contract logistics ensures a better online order fulfilment by managing the company’s inventory, packaging, tracking, transportation of goods, reporting & forecasting, and warehouse management. Many of the online retailers reported that free and fast shipping is the most important thing for customers. Thus, retailers are profoundly shifting towards contract logistics to manage all or part of their supply chain processes and gain a competitive advantage in the market. The in-house management if the supply chain is difficult and costly as well, as the company needs to invest in staff, necessary technology, and locations. It also helps retailers to manage costs and effectively source raw materials and assure timely delivery of their products in the market.

 

Distribution management is another critical function involved in the supply chain that can lead to cost savings in the overall supply chain. An organized distribution network saves significant money for the businesses the costs to store them for longer times at the warehouses is eliminated. Inventory stored at warehouses incur costs to the businesses. Rent, interest payments, insurance taxes pertaining to the list stored coupled with depreciation and obsolescence of the product add to the charges. The services offered by logistics firms add substantial value to the manufacturing companies. These firms help different companies to reduce weak points that outcomes in loss of revenue or profits and further help to assure maximal profitability. Contract logistic companies specialize in several logistics operations which offer network analysis, mode network optimization, warehousing, management of vendor compliance, and other logistics operations.

 

Contract logistics offer wide-ranging services from production to the distribution and aftermarket services. The companies operating in South Africa contract logistics market provide standardized warehousing, transport, and other value-added services to form a customized supply chain solutions. For instance, the contract logistics services comprise of planning, production activities, sourcing, packaging, aftermarket services, and repairs, etc. Major players operating in the contract logistics market are more inclined towards applying standardized solutions and operations backed up by leading supply chain providers to meet the customer’s quality expectations. The trend towards outsourcing logistics and demand for value-added logistics services are expected to grow in the near future. Moreover, the need for supply chain services is expected to witness steady growth in rapidly growing economies such as South Africa.

 

The major players operating in the market for contract logistics market include Cargo Carriers (Pty) Limited, Ceva Logistics AG, DB Schenker, Deutsche Post AG, DSV A/S, Imperial Logistics, Laser Group, Namlog, Onelogix Group, and UPS Supply Chain Solutions among others.

 

The report segments the South Africa contract logistics market as follows:

 

South Africa Contract logistics Market – By Type

  • Outsourcing
  • Insourcing

South Africa Contract logistics Market – By Service

  • Transportation
  • Warehousing
  • Packaging Processes and Solutions
  • Distribution
  • Production Logistics
  • Aftermarket Logistics
  • Others

South Africa Contract logistics Market – By End User

  • Aerospace
  • Automotive
  • Consumer
  • High-Tech
  • Industrial
  • Pharma & Healthcare
  • Retail
  • Others

 

 

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