Supply Chain and Logistics For B2B Market Overview

Supply Chain and Logistics for B2b Market Size Was Valued at USD 2216 Million in 2023, and is Projected to Reach USD 3356.11 Million by 2032, Growing at a CAGR of 4.72% From 2024-2032.

With the rise of technology, B2B models are becoming more common. B2B models refer to transactions or business activities that occur between two companies. It involves one business selling products or providing services to another business. The supply chain is the name given to activities, materials, processes, and logistics that are involved in the movement of commodities from the supplying companies to the receiver company that assembles the raw products into a finished one. The primary companies collect raw materials from vendors, assemble them into smaller components then dispatch them to the secondary companies who make them available for consumers. The transfer of commodities takes place via supply chain and logistics systems. Finances, shipping information, and product flow are the prime constituents of this process. Manufacturing and supplying companies have to keep balance in all these aspects to achieve the success they are made for. The terms supply chain and logistics refer to the management of all the processes and activities that are taking place in this complex system. Businesses are continuously making efforts to make the supply chain and logistics process, more efficient and profitable for them. This is done by reducing the costs of the processes and making the products reach customers utilizing the most affordable options thus, the demand for the supply chain and logistics for B2B market is going to rise in the projected period.

Market Dynamics And Key Factors In Supply Chain and Logistics for B2B Market

Drivers:

Global supply chains are critical to global business, and the underlying logistics of sending, receiving, transferring, and storing commodities is a major component driving the growth of supply chain and logistics for B2B market. Most of the businesses are going global to increase sales through access to mass markets, better access to resources, reduced costs and economies of scale, unique worldwide brand identity and name, and better access to tax savings and finance. Globalization helps the business to expand its market share thus, significantly increasing the volumes of sales. The supply chain services have provided solutions for B2B sectors to increase their trade and have access to raw materials and other processed components that are manufactured in one part of the world and are supplied to other parts where the finishing of the products is done.

Optimized supply chains play an important role in lowering costs and enhancing the production cycle. Additionally, it enhances the efficiency of a company to adjust to disruptions, ever-evolving markets, and fluctuating industry trends. Moreover, one of the main advantages of the supply chain to the B2B sector is that effective dialogue and coordination results in decreased inconsistency in distribution, logistical errors, and delays in production and shipment. A report by the State of Logistics published that, transportation costs are rising 6% – 7% every year. To combat the rising costs, efficient management of supply chain and logistics is necessary to ensure faster shipping of goods and services, thereby propelling the expansion of the supply chain and logistics for the B2B market over the projected period.

Restraints:

With B2B order fulfillment services, accuracy is extremely important. Businesses may have compliance requirements, such as tax rules, product restrictions, SKU codes, parcel labels, barcodes, or specific invoicing structures. Because orders are bigger and in bulk, shipments can be expected to cost more and have longer delivery lead times. Business should expect to get more familiar with carriers that need to ship products internationally, such as sea freight or air freight, as well as international trade barriers such as taxes, tariffs, and subsidies. International supply chains can incur high costs if products are not delivered on time thereby, hampering the growth of the supply chain and logistics for the B2B market in the forecast period.

Opportunities:

The growing eCommerce industry and the demand for timely shipment of products are the main factors creating a profitable opportunity for the market players involved in the supply chain and logistics for the B2B market. Over the past few years, there has been a significant rise in the number of small and mid-sized companies. Their rising demand from these companies for efficient transportation, and inventory management has opened doors for the market players.

Market Segmentation

Segmentation Analysis of Supply Chain and Logistics for B2B Market:

Depending on solutions, the software segment is forecasted to have the highest share of the Supply Chain and Logistics for B2B Market in the projected period. With the growing e-commerce industry, the demand for solutions that can offer live tracking of shipment, information about the inventory, and the number of orders is increasing. The software provides the most accurate information at any given time and information regarding shipment or inventory is updated in real-time. Usage of software eliminates the maintenance of spreadsheets for keeping records. The software helps in inventory management by checking the availability of stock and raw materials as well as their quantity. The software can also be employed in the management of all the activities taking place in the warehouse and can analyze storage and space.

Depending on transportation, the roadways segment is forecasted to lead the supply chain and logistics for the B2B market. Road transport is the core lifeline of the logistics industry as it can provide door-to-door, from source to destination, warehouse-to warehouse, doorstep services. These services are not provided by their counterparts. Roadways also reduce cartage expense, loading and unloading expenses, and other associated feeder transport costs. Moreover, relatively low capital investment is required in road transport. Additionally, routes and timings can be altered to suit the business requirements with ease. It also lessens the risk of damage to goods thus, strengthening the development of the roadways segment in the forecast period.

Depending on distribution services, the regular segment is expected to have the highest share of the supply chain and logistics for the B2B market over the projected period. Routinely delivery of goods and services is the main factor that stimulates the growth of the segment. Some organizations require raw materials and other products regularly from other businesses. A regular supply of products maintains harmony between two companies and helps both in making a profit thus, driving the growth of the segment.

Depending on applications, the eCommerce segment is forecasted to lead the supply chain and logistics for the B2B market in the analysis period. The rise in the sales of eCommerce products has propelled the development of this sector. Ecommerce B2B organizations require to optimize supply chain and logistics services that can inform them about the inventory details and enable them to track the shipment thus, consolidating the expansion of the eCommerce segment.

Regional Analysis of Supply Chain and Logistics for B2B Market:

The North American region is forecasted to have the highest share of the supply chain and logistics for the B2B market attributed to the growing business sector in this region. The USA and Canada are the two prominent economies in this region driving the expansion of the market. The role played by the government also plays an important role in the development of business organizations. For instance, The United States' research and development program has placed supply chain resilience at the top of the priority list. The White House Office of Science and Technology Policy has called for the development of resilient advanced military capabilities as well as improved resilience of critical infrastructure and advanced manufacturing in the United States to natural and man-made disasters, including cyber-attacks and supply chain vulnerabilities, in its R&D priorities for federal agencies for the fiscal year 2021.

The European region is anticipated to have the second-highest share of the supply chain and logistics for the B2B market. automotive, aerospace, fashion, chemical, IT, furniture, food, and beverage are the prime industries responsible for the growth of the supply chain market. With the rise in the usage of technology, several industries have adopted software solutions to meet the growing demand. The software helps in managing inventory, keeping a tap on the shipment, and reducing costs by eliminating the excessive accumulation of goods. Therefore, the growing usage of the software by business organizations in this region is consolidating the expansion of the supply chain and logistics for the B2B market in this region.

The supply chain and logistics for the B2B market in the Asia-Pacific region are expected to develop at the highest CAGR over the forecast period. India, China, Japan, South Korea, and Singapore are the prominent economies in this region driving the growth of the market. After 2020, India's B2B marketplaces flourished brightly. Every 3-4 months, the sector's values doubled, drawing investment rounds totaling more than USD 100 million. During the COVID-19 epidemic, B2B marketplaces were well-positioned to take advantage of the opportunity, providing high-quality commodities at reasonable rates with consistent delivery schedules, as well as the requisite standard credit conditions, which aided the market's rise.

Players Covered in Supply Chain and Logistics For B2B Market are:

• Nippon Express (Japan)
• Ryder System Inc. (US)
• Robinson (US)
• Kuehne + Nagel International AG (Switzerland)
• Delhivery (India)
• DHL Supply Chain (Germany)
• Maersk Group (Denmark)
• UPS Supply Chain Solutions (US)
• Gati (India)
• CEVA Logistics (France)
• J.B. Hunt Transport Services (US)
• DB Schenker (Germany)
• Holding AG (Switzerland)
• GEODIS (France)
• XPO Logistics (US)
• FedEx Corp (US)

COVID-19 Impact on Supply Chain and Logistics for B2B Market

The COVID-19 pandemic has significantly challenged the supply chains globally. Multiple countrywide lockdowns continue to stifle or even halt the movement of raw materials and processed goods, disrupting manufacturing facilities. However, the pandemic has not created any new challenges for the supply chains. COVID-19 exposed previously unknown weaknesses in several sectors, and many organizations have experienced employee shortages and losses as a result of it. COVID-19 accelerated eCommerce services, with ten years of eCommerce adoption achieved in three months. With more customers relying on digital purchasing, B2B corporations are now facing additional demand on their existing systems for order management and inventory monitoring as more clients rely on digital purchasing. While the digital approach to B2B purchasing began as a crisis response during the epidemic, it is projected to grow in future years. Only about 20% of B2B organizations hope to return to physical sales, resulting in the foundation of modern digital services as the new normal. To summarize, the COVID-19 pandemic has promoted many B2B customers to switch towards online buying and the trend is likely to continue in the post-pandemic period thus, accelerating the development of Supply Chain and Logistics for B2B Market over the forecast period.

Recent Industry Developments In Supply Chain and Logistics for B2B Market

• In August 2021, Logistics major Delhivery announced that it has acquired Bengaluru-based Spoton Logistics, with this acquisition Delhivery will strengthen its B2B capabilities.
• In August 2021, DSV launched its green logistics solutions to accelerate the green transition of the supply chain and logistics industry. These new solutions will be available to all businesses of any size, everywhere in the world, and across all major means of transportation.
• In April 2021, DSV has announced the acquisition of Global Integrated Logistics (GIL), a part of Agility. With this acquisition, DSV will become the third-largest transport and logistics company and will have a combined revenue of US$ 22 billion, and a workforce of more than 70,000 employees present worldwide.