Procurement Outlook
With increasing complexities in developing an efficient supply chain for better outsourcing activities the likelihood of getting disruption in the supply chain has also increased. These disruptions can cause by various reasons outside the control of the organization such as, natural disasters, accidents, labor crisis, political instability, financial disruption, disruption to transportation infrastructure, etc. Hence, an organization needs to have supply chain insurance in place for any supply chain disruption. The two coverages that will cover supply-chain issues are contingent business interruption (CBI) insurance and broad, specialized supply-chain insurance. These insurance policies will reimburse both potential lost profits as well as costs caused by disruptions to the insured’s supply chain, even if the insured itself has not suffered any damage.
Demand Outlook
The global supply chain insurance market is valued at USD2.5 billion in 2020 and it is expected to grow at a CAGR of 4% from 2020 to 2025 due to the high adoption of supply chain insurance from medium and large-sized organizations across manufacturing, transportation, and logistics, pharmaceuticals, and food & beverages sectors. High anti-dumping duties imposed by the governments in countries such as China, the US, France, Germany, and India are expected to increase the price of exported supply chain insurance. North America is leading the supply chain insurance market with more than 35% revenue share followed by Europe (~30%) and APAC (~25%).
Grab your copy, or request for a free sample of the “Supply Chain Insurance Market Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Cost Drivers
The salary of the personnel developing the insurance policies is one of the major components of developing supply chain insurance. The cost of the insurance also depends on the policy terms, company size, geographic location, and criticality of a business.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
- Web Hosting Services Market Procurement Intelligence – Web hosting services provide shared or dedicated hosting of one or more services for their customers. It is majorly used for hosting websites, company email, files, games, and other content. Web hosting services enable companies to subcontract one or more web-based core functions to a hosting provider. Hence, the procurement need for web hosting services is becoming very important.
- Engineering, Procurement, and Construction Market Procurement Intelligence – EPC is an abbreviation for engineering, procurement, and construction contracts. It is a form of building contract used for a large or complex project. Here, the builder has to deliver a completed project on a turnkey basis. Here, the time frame for completion and the budget are pre-decided no matter the uncertainties, unexpected bottlenecks, or natural and artificial disruptions. Projects can be from the private sector as well as the public sector.
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