LONDON--(BUSINESS WIRE)--Global procurement market intelligence advisory firm, SpendEdge, has announced the release of their 'Cargo Insurance Procurement Research Report.' The insights and data in this report provide an exclusive analysis of the supply market, factors influencing purchasing decisions, pricing models, key supplier landscape, procurement best practices, and a comprehensive analysis of the supplier capability matrix for the financial services industry. This report breaks down the data and analysis behind the procurement of cargo insurance and acts as an all-inclusive guide for making smart purchasing decisions.
"The pro-liberalization and globalization policies and initiatives of countries across the globe have led to the establishment of free trade zones and trade corridors," says SpendEdge procurement research analyst Tridib Bora. "This has resulted in rapid growth of the logistics industry, which in turn drives the global cargo insurance market because logistics is one of its key end-consumer," added Tridib.
Key Report Features
| Procurement Best Practices | Negotiation Strategies | |
| Supply Market Insights | Pricing Models | |
| Cost Saving Opportunities | Key Supplier Analysis | |
| Category Risk Analysis | Supplier Capability Matrix | |
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Report Insights
- Privatization of the transportation industry in countries such as China, India, and other emerging nations has increased competitiveness and efficiency of the industry. This has spurred the growth of the transportation industry, which will, in turn, drive the demand for cargo insurance market.
- Purchasing managers must evaluate the risks of their business and engage with suppliers that provide comprehensive coverage of all their supply chain risks. This helps to protect buyers from all kinds of losses. Moreover, they can also seek the advice of insurance service providers in proper management mitigation of their risk, as most of the cargo insurance providers have better analytics and risk management and monitoring systems and capabilities.
- Suppliers usually do not disclose their risk assessment model which leads to difficulty for purchasing managers. The lack of transparency and standardization of risk assessment model used by suppliers make it difficult for purchasing managers to compare and benchmark the risk management models adopted by various suppliers.
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Cargo Insurance Pricing Trends
The cost-plus markup and risk-based pricing are the two widely adopted pricing models in the cargo insurance market. The cost-plus pricing method is advantageous to purchasing managers if there is a fall in the price of cargo. Moreover, the responsibility for identifying and engaging with cost-effective subcontractors lies with the insurance supplier.
The risk-based pricing method helps purchasing managers to avail low premiums for cargo that have minimal risk exposure. It also helps to align prices and cost by quoting high premiums for customers with high risk or costs and low price for low-risk customers, thereby assisting to satisfy the requirements of both buyers and suppliers.
However, according to industry experts, the preferential rates pricing will gain a higher adoption level in the forecast period and will give maximization in cost-savings. As the preferential rates pricing leads to a contract extension, both suppliers and purchasing managers have low costs on operations. Moreover, this pricing model helps in maintaining and developing strategic relationships and reducing the probability of customers switching to a competitor.
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About SpendEdge
SpendEdge shares your passion for driving sourcing and procurement excellence. We are a preferred procurement market intelligence partner for Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence that helps sourcing and procurement professionals make informed decisions. These innovative procurement solutions help enterprises transform structural capabilities, improve execution efficiency, and fast-track time to savings.
