We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Report: Shippers to boost freight procurement budgets in 2022

Report: Shippers to boost freight procurement budgets in 2022

Large companies to increase spending, ramp up automation in response to supply chain challenges and competitive freight market conditions.

statistics-gc6e89062e_640.jpg
January 28, 2022
Supply Chain Quarterly Staff
No Comments
Shippers are increasing budgets and placing a higher priority on technology in response to ongoing supply chain challenges and competitive freight market conditions, according to research from freight procurement software provider Sleek Technologies.

Sleek polled 300 senior logistics leaders at distribution centers, manufacturing, and retail companies with annual freight spend of $100 million or more for its 2022 State of Freight Procurement Research Report, released earlier this month. The findings show that most shippers plan to increase their freight procurement budgets this year while also upgrading procurement systems and strategies to better compete in the market.

The study found that 97% of shippers plan to increase their freight procurement budgets in 2022, and that 52% will increase those budgets by 25% or more year-over-year.

“These findings illustrate just how competitive the freight procurement space has become over the last 18-24 months,” Mike Nervick, Sleek Technologies’ CEO and co-founder, said in a statement summarizing the report. “From boosting technology to trying to absorb higher costs, freight procurement professionals are having to ramp up their budgets to beat out competitors and meet customer expectations.”

The study also found that 96% of shippers have invested in new technology or strategies to help boost freight procurement performance as a result of Covid-19, with 95% saying their freight procurement operations have either “significantly improved” or “somewhat improved” since the start of the pandemic. What’s more, 66% of respondents said that automating freight procurement operations has become a high priority for their organization, with another 31% saying it is a “medium priority.”

Cost control issues (66%), on-time delivery (65%), and high primary rejection rates (46%) were the most common  recurring issues that respondents encountered throughout the pandemic, according to the study.
Logistics Procurement Strategy Technology
KEYWORDS Sleek Technologies
  • Related Articles

    Report: Logistics outsourcing budgets to grow over next two years

    RateLinx Announces Free Freight Audit Analysis to Help Shippers Gain Insights in Less Than 30 Days

    Study: Shippers expect freight slump in 2019

Recent Articles by Supply Chain Quarterly Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

WiseTech buys New Hampshire drayage and trucking visibility software firm for $230 million

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • Five levers to build a resilient supply chain

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing