PUBLISHER: Allied Market Research | PRODUCT CODE: 1641720
PUBLISHER: Allied Market Research | PRODUCT CODE: 1641720
Warehousing, also known as storage, is a crucial component of the supply chain, serving as a system for storing goods until they are needed for sale or distribution. It acts as a buffer between production and consumption, ensuring that products are available when and where they are needed. Distribution logistics, on the other hand, encompasses the end-to-end movement of goods from the point of origin to the final destination. This service includes a variety of functions such as packaging, storage, transportation, stock control, and inventory management.
The integration of warehousing and distribution logistics allows businesses to streamline their operations, optimize supply chain efficiency, and reduce overall costs. By effectively managing storage and the movement of goods, companies can maintain or even improve the level of service provided to customers. This is especially important in today's fast-paced market where timely delivery and product availability are critical to customer satisfaction. In addition, these services help businesses manage fluctuations in demand, minimize stockouts, and reduce excess inventory, ultimately leading to a more responsive and agile supply chain.
Warehousing and distribution logistics are essential elements of the modern supply chain, serving as the backbone of efficient product management and movement. Warehousing refers to the storage of goods that are not immediately needed for sale or distribution. It provides a safe and secure environment where products can be kept until they are required, thus helping businesses manage their inventory effectively.
Distribution logistics, on the other hand, is a comprehensive service that involves the end-to-end movement of goods from the manufacturer to the final consumer. It encompasses several key activities such as packaging, transportation, stock control, and inventory management. The integration of warehousing with distribution logistics ensures that goods are stored and managed efficiently, and then delivered to customers in a timely manner.
The growth of the global warehousing and distribution logistics market is majorly driven by rise in demand for efficient and cost-effective supply chain with reduced lead time. Various companies across the globe are building warehouses and distribution center to create efficient supply chain infrastructure. For instance, in April 2022, Abrdn's AIPUT fund (Airport Industrial Property Unit Trust) completed construction of its 360,000 sq ft dnata City East warehouse campus opposite Heathrow's Cargo Terminal. The new warehouse campus is expected to strengthen logistics infrastructure, ensuring high value time-critical products are moved more quickly, safely, and sustainably from gateway location.
Furthermore, factors such as expansion of the e-commerce industry, surge in demand for warehouses, increase in volume of inventory are anticipated to boost the growth of the global warehousing and distribution logistics market during the forecast period. However, lack of control of manufacturers on logistics service and poor infrastructure and high initial cost of automated warehouses are expected to hinder the market growth.
On the contrary, increase in trend of automation in warehouses and rise in demand for express delivery are expected to offer remunerative opportunities for the expansion of the warehousing and distribution logistics market during the forecast period.
The global warehousing and distribution logistics market is segmented into end use, business type, mode of operation, type, and region. By end use, it the market is divided into healthcare, manufacturing, aerospace, telecommunication, government & public utilities, banking & financial services, retail, media & entertainment, trade & transportation, and others. On the basis of business type, it is divided into warehouse, distribution, and value-added services. Depending on mode of operation, it is categorized into storage, roadways distribution, seaways distribution, and others. As per type, it is bifurcated into solution and services. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in this market are Agility, Ceva Logistics, CJ Century Logistics, CWT Ltd., DB Schenker, DHL Supply Chain, Gemadept, Keppel Logistics, Kerry Logistic, Kuehne+Nagel, Singapore Post, Tiong Nam Logistics, WHA Corp., YCH Group, Yusen Logistics, Manhattan Associates, Blue Yonder, Easy Metrics, TZA (Supply Chain 24/7), SAP SE, NextView, and Tecsy
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