Dock and Yard Management Market to Reach US$7.9bn by 2027
The global supply chain has been growing more complex and sophisticated over the past few years, and now that the COVID-19 pandemic has forced the adoption of more agile and streamlined processes, there is a greater emphasis on the importance of digitisation and technological solutions.
One of these solutions, which has a tremendous impact on the logistical side of supply chain networks, is dock and yard management ─ “the creation of systems that address all activities related to or impacting the dock and yard, taking into consideration relevant capacities, resource availability, and constraints, as well as demand and company goals.”
If companies invest in suitable dock and yard management systems, they’ll find that they can significantly reduce costs, inventory stock, and congestion, whilst simultaneously increasing throughput, save waiting time, and hastens the process of loading and unloading cargo. , the global research and advisory firm, has maintained for a long time that “[Dock and] Yard management presents opportunities to improve operational efficiency through increased visibility and process optimisation.”
As it happens, organisations with global supply chains were listening. Though many have been slow to implement the top-tier dock and yard management systems (YMS), it seems that the recent global crises provided enough of a push to change their ways. Amid the COVID-19 crisis, the global market for dock and yard management systems (YMS), estimated to be worth US$3.3bn in 2020, is projected to reach a revised size of US$7.9 bn by 2027, growing at a compound annual growth rate (CAGR) of 13.4% over the period 2020-2027, according to an analyst report by .
“Warehouse management systems (WMS), one of the segments analysed in the report, is projected to record 14.8% CAGR and reach $5.3 billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the transportation management systems (TMS) segment is readjusted to a revised 11% CAGR for the next 7-year period.
The dock and YMS market in the U.S. is estimated at US$973.1mn in the year 2020. China, the world’s second-largest economy, is forecast to reach a projected market size of US$1.4bn by the year 2027, with a CAGR of 12.8% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 12% and 11.2% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 9.5% CAGR.”
Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.