Lewes, DE -- (SBWIRE) -- 08/08/2016 -- Report forecast the global spare parts logistics market to grow at a CAGR above 5% during the period 2016-2020.

Logistics and supply chains for spare parts are different from those of finished products because the market for them is unstable. Many manufacturing companies are facing hindrances because of an increase in operational costs and a decline in demand from consumers. Vendors of logistics services should be efficient at services such as IT, data management, and supply chain management. Accurate forecasting of demand takes systematic and proper planning, purchasing, and ordering of logistics operations

The report covers the present scenario and the growth prospects of the global spare parts logistics market for 2016-2020. To calculate the market size, this report covers revenue generated by 3PL providers providing spare parts logistics services in the market.

The market is divided into the following segments based on geography:
- APAC
- Europe
- MEA
- North America
- South America

According to the report, cost reduction on having an integrated supply chain (launch to phase-out stage of a product) is an important driver that led to the growth of the market. With respect to the automotive industry, the potential logistics cost saving for an OEM are spread across the life cycle of the final product. During the launch phase the parts availability is highly critical to maintain the product running without any downtime. The shipment trigger happens when the inventory is below the safety stock mark. While the inventories are high in decline and phase out stage, the criticality remains low.

Further, the report states that choosing the right supply chain model based on criticality is a challenge to the growth of this market. Time bound delivery of spare parts necessitates a strong supply chain. The just-in-time model is not always feasible from a profitability point of view for the spare parts logistics service providers. The variation in spare parts and the demand characteristics also hinder the logistics. Finding the right modes of transportation, location of distribution centers, warehouses, and synchronization with the production capacities of the OEM players to reach the required service level.

Global Spare Parts Logistics Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

key players in the global spare parts logistics market: CEVA Logistics, DB Schenker, Deutsche Post DHL, Kuehne + Nagel, and UPS.

Other Prominent Vendors in the market are Broekman logistics, Beumer Group, FedEx SupplyChain, Kerry Logistics, Logwin, Ryder System, SEKO Logistics, TVS Logistics, UTi Worldwide, Verst Group Logistics, and Yusen Logistics.

Market driver
- Higher profit margins (more than 60%-70%) for spare parts than for core vehicle sales sales
- For a full, detailed list, view our report

Market challenge
- Excess cost from over stocking
- For a full, detailed list, view our report

Market trend
- Improvements in technology
- For a full, detailed list, view our report

Key questions answered in this report
- What will the market size be in 2020 and what will the growth rate be?
- What are the key market trends?
- What is driving this market?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the key vendors?
- What are the strengths and weaknesses of the key vendors?

Spanning over 89 pages and 38 Exhibit "Global Spare Parts Logistics Market 2016 - 2020" report covers Executive summary, Scope of the report, Market research methodology, Introduction, Market landscape, Market segmentation by end-user, Geographical segmentation, Market drivers, Impact of drivers, Market challenges, Impact of drivers and challenges, Market trends, Vendor landscape, Key vendor analysis, Appendix.

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