CATEGORY

Marketing Fulfilment Services

Marketing Fulfilment Services basically the logistics and transportation services where all the marketing materials are delivered to the end users by the service providers

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Category Alerts

CATEGORY ALERTS

FedEx Freight expands its home delivery business with returns.

January 09, 2023
alert level: Medium
CATEGORY ALERTS

To meet rising demand, Kuehne+Nagel and Vestas strengthen their relationship.

December 15, 2022
alert level: Medium
CATEGORY ALERTS

Walmart plans to significantly increase automated fulfilment.

December 15, 2022
alert level: Medium

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Marketing Fulfilment Services Industry Benchmarks

Savings Achieved

(in %)

The average annual savings achieved in Marketing Fulfilment Services category is 7.40%

Payment Terms

(in days)

The industry average payment terms in Marketing Fulfilment Services category for the current quarter is 58.1 days

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Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Marketing Fulfilment Services Suppliers

    17,157 
    Total Suppliers
    661
    Diverse Suppliers
    74
    Normalized Supplier Rating
    Marketing Fulfilment Services Supplier

    Find the right-fit marketing fulfilment services supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

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    Sample Supplier
    Company
    Omnicom Group Inc.
    Location
    Jackson, Mississipi
    Duns number
    3862211
    D&B SER Rating
    dnb logo

    Up to 3 months

    1 9
    6
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile
    Company and Sector Performance
    39
    100
    Limited (1)
    ESG Perfomance (/100)
    Environment
    62
    Social
    30
    Governance
    47
    6 Domains Performance (/100)
    Business behaviour
    41
    Human rights
    51
    Community Environment
    18
    Corporate governance
    49
    Human resources
    17
    Security Scorecard
    81
    Threat indicators
    B
    83
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    A
    100
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    F
    56
    Application Security
    Detecting common website application vulnerbilities
    B
    84
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    92
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    B
    89
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked
    Industry Comparison
    omnicomgroup.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    2
    Human Rights Issues
    0
    Production Supply Chain Issues
    2
    Environmental Non Compliance Flags
    4
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    6
    Fraud Issues
    1
    Labor Health Safety Flags
    6
    Regulatory Issues
    5
    Workforce Disputes
    0
    Sanctions
    0
    esg energy transition
    72
    Discrimination Workforce Rights Issues
    6
    esg controversies critical severity
    No

    Marketing Fulfilment Services Market Intelligence

    global market outlook

      • The Marketing fulfilment services market size in Asia is the highest at $23.1–29.9 billion, growing annually at 7.5-10 percent , followed by North America $17.3-20.3 billion, growing annually at 4–6 percent. Further, the Marketing Fulfilment services market size in Europe Market Size $ 13.5- 14.25 billion, growing annually at 4–6 percent.
      • The top Marketing fulfilment service providers in the world include SEKO Logistics, Arvato, FedEx, DHL, and Logwin.

      • The global the Marketing fulfilment services market stands at a stable level with supply and demand at a balanced level.

      • According to industry experts, the Marketing fulfilment services market Expected to grow at a CAGR OF 7-8 % annually to reach $80.25 – 91.8 BILLION by 2024.

      • The major Marketing fulfilment services market include Asia, which holds 40% of the total revenue share, followed by North America (27%), and Europe (19%).

    Marketing Fulfilment Services market frequently asked questions

    The global fulfilment market size was $53 billion in 2019. The global e-commerce fulfilment market is growing fast too. Beroe estimates that the global marketing fulfilment services market will grow at a CAGR of 4 percent to 5 percent every year until the end of the year 2022. It is estimated that the market will be valued at over $65 billion at the end of 2022 due to continued growth in the marketing operations and fulfillment service market. The growth of the fulfillment industry will continue in the future after 2022. The different regions have different market sizes according to the Beroe report. The Asia Pacific region has the largest market share with a value of $18 billion to $20 billion. The North American region has the second-largest market share and has a market value of $13.5 billion to $15.5 billion. Next, it is the European region that has a market size with a value of $12 billion to $13.3 billion. The Middle East and Asia region have a market value of $2.2 billion and $2.6 billion.

    The high marketing fulfillment services market regions include Japan, the UK, Hong Kong, Australia, Singapore, South Africa, Nigeria, Germany, Egypt, the UAE, and the east, west, and gulf coast of the US. The medium market maturity regions for marketing fulfilment services include the central US, Mexico, Canada, India, Portugal, Chile, Brazil, Poland, Argentina, Spain, Korea, Vietnam, and Morocco.

    The fulfilment marketing services trends are many. E-commerce fulfillment is on the rise and this means eFulfillment service among others will be more prominent in the long-term too. Pick and pack companies will use business intelligence for fulfillment to ensure efficiency is ensured at all times. Logistics services such as labeling and sorting, kitting and bundling, and campaign fulfillment can be expected according to the Beroe category intelligence report. The product fulfillment, material shipping, and order fulfillment are some of the aspects that will be focused on. The providers' focus will be on freight warehouse, fulfillment logistics, and fulfillment house. Earlier, there was more focus on the adoption of fulfilment methods whereby only local suppliers were partnered with. Today, the scenario has changed completely. Suppliers are more willing to partner with global suppliers now and this trend is likely to continue well into the future. This means higher buyer maturity too. Partnering with global suppliers is more likely to give rise to outsourcing. Some companies have already started to outsource as a way to ensure fulfilment. This is particularly true for e-commerce as the demand for fulfilment has risen substantially over the last few years. As e-commerce will continue to rise, so will the market fulfilment services.

    The top fulfillment companies include FedEx, SEKO Logistics, DHL, and Logwin Logistics.

    The main cost component is the labor cost which constitutes anywhere between 45 percent to 52 percent of the total cost. The labor cost includes wages and the benefits given to employees. There are various cost-saving strategies that are used. These include four main ones; supplier development, process standardisation, payment term optimization, and performance-based pricing.

    The first is whether timely delivery has been made. The second important factor is the accuracy of fulfilment. The other KPIs include cost among others.

    Marketing Fulfilment Services market report transcript

    Global Marketing Fulfilment Services Industry Outlook

    • The global fulfillment market was valued at $85 billion in 2022. The market is expected to reach $91.8 billion in 2023

    • The market is forecasted to grow at a CAGR of 7–8 percent between 2023 and 2026F

    • Regions, such as Western Europe, North America, and some parts of APAC, including Australia, Japan, Hong Kong, and Singapore, have a high market maturity

    • APAC and parts of Latin America are expected to be the future growth-driven markets

    Global Marketing Fulfilment Services Market Maturity

    • Fulfillment services penetration is high outside Europe and North America due to e-commerce

    • APAC is witnessing an increase in adoption due to the presence of regional/global suppliers with well-established fulfillment centers and strong regional footprints; global buyers are also looking at consolidating supply bases. ME and LATAM have low adoption due to the challenges in delivery because of low infrastructure and connectivity

    • Fulfillment services penetration is high outside Europe and North America due to e-commerce

    • APAC is witnessing an increase in adoption due to the presence of regional/global suppliers with well-established fulfillment centers and strong regional footprints; global buyers are also looking at consolidating supply bases. The growth of e-commerce in the APAC region attributes to the growth of fulfillment services market.

    • ME and LATAM have low adoption due to the challenges in delivery because of low infrastructure and connectivity

    Global Marketing Fulfilment Services Industry Trends

    • Increasing levels of providers’ geographic footprints and adoption of global fulfillment strategy indicate increasing buyer maturity and willingness to partner with suppliers on a global scale

    • Suppliers are also improving their supply capabilities while adopting performance-based metrics for evaluation and monitoring of delivery. E-commerce is also fuelling the demand for fulfillment; this has led to outsourcing of services by buyers

    Global Fulfillment Drivers and Constraints

    Retail and e-commerce expansion in emerging markets is expected to strongly drive fulfillment budgets in these markets and also growth in online buying due to the increase in adoption of mobile and online technology by consumers and service providers

    Drivers

    Tactical Benefits:

    • By outsourcing fulfillment services to a supplier, buyers can exploit service providers’ abilities and focus on core business. Outsourcing has also reduced shipping costs due to consolidated shipment and negotiation (with the carriers) of rates on bulk shipments and also helped eliminate shipping mix-ups

    Technological Benefits:

    • Outsourcing allows buyers to avail the best of technologies implemented by service providers. Technology is changing continually and constantly; 3PL companies invest a huge portion of their budget in maintaining and upgrading their technology and warehouse equipment

    Operational Benefits:

    • Outsourcing to a fulfillment service provider would allow buyers to standardize the level of services across various locations. Productivity and efficiency could be enhanced through the introduction of various critical performance indicators and compliance clauses in the contract

    • Centralized procurement through global/regional service providers will save costs and efforts in paying for additional warehouse space, hiring and training employees and managing inventory

    Constraints

    Subcontracting Practices:

    • Subcontracting of storage and delivery is done in case the supplier does not have a network in a particular region. This practice indirectly affects the buyer since subcontractors charge a margin from the service provider, which is eventually passed on to the buyer. This margin-on-margin increases buyers’ spending

    • There is also a level of uncertainty in the delivery of order fulfillment and customer services, e.g., customer response regarding shipments. An ineffective customer support system may have a negative impact on the brand name to the buyer using the fulfillment service

    Supply Trends and Insights

    Global/ Regional Supplier

    Increase in M&A:

    • Global suppliers are enhancing their service capabilities through M&A and expansions to achieve fulfillment contracts from large buyers

    • Logwin extended its network in South America. The organization configured its own branch in the Free Trade Zone in Bogotá

    • FedEx acquired GENCO Distribution Inc. (a third-party logistics provider) and Bongo International LLC (an e-commerce platform). This will add to FedEx’s capability to serve international customers

    Customized Services:

    • Customization helps in increasing the integrity of services and brings a high level of expertise. Further, suppliers are providing training through management development programs by partnering with training agencies. Suppliers are also enhancing their same-day delivery capability

    Supply Trends 

    • Supplier Consolidation: The majority of global buyers are consolidating the supply base by reducing the number of 3PLs they use

    • Innovative Service Offerings: Suppliers are coming up with new contract models and service options for buyers

    • Use of Big Data in the Supply Chain: Supply chain managers and IT service providers are exploring and implementing the use of data analytics for business intelligence to improve and leverage the overall supply chain. UPS’ report on the ‘Pulse of the Online Shopper’ provides insights on smartphone usage for online shopping, the influence of social media, and how online shopping is driving in-store traffic

    Engagement Treads

    • Most Adopted Model Globally: Bundled sourcing strategy

    • Why? To achieve spending visibility, risk reduction, and cost savings

    • Contract Length: Two to three years with an option of contract extension, based on performance linked with SLAs

    • Pricing Strategy: Cost-plus and fixed price transactional pricing model

    Why You Should Buy This Report

    • Information about the global fulfilment services market size, maturity, industry trends, drivers and constraints, and regional market outlook of North America, Europe, MEA, Asia 
    • Pacific, and Australia.
    • Porter’s five force analysis of developed and emerging fulfilment services market.
    • Supply trends and insights, supplier profile and SWOT analysis of major players like SEKO Logistic, Logwin Logistics, DHL, FedEx, etc.
    • Best sourcing models, cost drivers, cost structure, pricing models, etc.

     

     

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