Value Added Services in Logistics (VAS)
Value-added services in logistics enable companies to provide more comprehensive benefits, which have become an essential tool for increasing customer satisfaction. The use of these services is particularly important in operations based on customer trust. Supply chain and logistics are some of the most competitive industries, and adding value can give your organization an edge.
What is a Value Added Service (VAS)?
The term value-added services refers to the additional distribution and warehousing services offered by third-party logistics providers to companies looking to outsource their supply chain operations.
Whenever logistics service providers add value in the right way, it affects the level of customer satisfaction, indirectly increasing their profits. Service providers know the ins and outs of the business and can assist companies in responding to customer needs. Companies that partner with value-added logistics providers can focus on their core business and work to be more competent in the market. Adding value is not a one-time activity – it requires ongoing maintenance, and 3PLs are working to provide value-added services alongside their more traditional offerings.
- Flexibility
The most significant benefit of using a 3PL provider is flexibility. Partnering with them will allow you greater flexibility in terms of manpower, space and equipment. They can offer all of these components to help you meet your customers’ needs more effectively. Some 3PL providers also offer additional physical space for a specific period as a value-added service, which could be a warehouse to store urgently needed inventory or a meeting space to discuss software updates on the fly. Work resources are also available as part of value-added services. If any of your product campaigns require a more hands-on approach to grabbing your audience’s attention, a 3PL can quickly move their staff onto your project and keep labor costs to a bare minimum.
- Quality
The value-added services department of a 3PL is primarily a team of specially trained personnel who can assist you in executing specialized projects. With the assistance of a dedicated team of professionals working on or supervising any customization, you can focus on the quality and efficiency of the work. The value-added team provided by a reliable 3PL provider could collaborate with customers. They can outline the project, ensure accuracy and precision, and take the necessary steps to complete the project on time.
- Ease of integration
Partnering with a 3PL provider’s value-added services allows the seller or business to work with a single partner for all of their logistics needs. A reliable 3PL can assist you in managing warehousing , transportation and all the value-added services you need. This help can make the process easier to integrate any updates or changes along the way. Keeping the product in a single logistics center can also minimize the costs of moving and transporting the products.
Types of value-added supply chain services
In warehousing and distribution, value-added services go beyond normal operations and can set you apart from the competition. These types of activities include cross-docking, transshipment, palletizing, kitting and returns processing.
Here are some examples of value-added services that reduce costs and impact business operations.
Cross-Docking
A cross-docking system allows companies to move products directly from the receiving dock to the shipping dock. This simplified method saves space and facilitates manual handling in the distribution center. Cross-docking requires tight synchronization of all inbound and outbound shipping movements and reduces costs by decreasing inventory buildup. Cross-docking also involves repacking , inspection and labeling.
Transshipment
The transshipment process requires more than one mode of transportation. Companies mainly use this solution when one mode of transportation, such as land, air or sea, is not sufficient to deliver goods from the point of origin to the destination. International shipments, which require multiple modes of transportation, are the best example of transshipment. The international shipping process usually starts by air or sea, followed by a truck.
Transshipment allows you to organize and sort shipments before delivering them to the distribution center or warehouse. This streamlined process eliminates any expensive or unnecessary ground transportation. All shipments are consolidated upon arrival, eliminating the need for a distribution center.
Transloading also allows your company to save money by eliminating underload truckload costs. In addition to benefiting businesses, the process is also faster, thus ensuring greater satisfaction for your customers. You can reach different areas with transshipment using various local and international shipping methods, increasing your business and growth opportunities.
Palletization
In palletizing, you place items or goods on pallets. Depending on your business and product, you can use manual, semi-automated, or fully automated methods to place shipments on pallets. Moving palletised products is more efficient, with faster delivery times. With palletization you can move perishable goods faster and reduce the risk of spoilage. The palletizing process also reduces labor requirements.
With standard pallet sizes you can optimize your warehouse workflow and operations. Palletization significantly reduces the risk of injury to workers. Because pallets are more durable than other shipping containers, they can allow you to transport multiple products at once.
Order fulfillment services
Order fulfillment services provide the highest customer satisfaction among all value-added services and is one of the highest value-added services in logistics. These services can streamline your supply chain and allow you to move your products faster. Order fulfillment services can help you satisfy your customers with a streamlined process and faster deliveries. This service includes internal packaging with the latest technological tools. Order fulfillment services seamlessly handle labeling and new product launches. When you enlist the help of a trusted partner, you can increase your efficiency in managing operations and save a significant amount of money on the purchase and maintenance of expensive equipment.
Returns can cause financial and logistical problems, but they are an inevitable part of doing business. Returns can take considerable effort and time, and businesses can sometimes find themselves in trouble trying to handle them. With value-added services you can outsource your returns processing. These service providers have dedicated warehouses and large staff to process and manage returns as required. When a return arrives, workers scan it into the system to determine whether it can be resold. Taking quick action can keep your company’s reputation intact and monitor performance patterns for insights.
Choose and pack
Picking and packing is part of the order fulfillment process , but sometimes special care must be taken to ensure consistent packing and delivery of all products. A pick -and-pack service can streamline all your packages and deliver them before the scheduled date. Value-added service providers have the latest technology that helps them find the best route and double-check the delivery address to reduce any chances of errors.
Kitting
The kitting process involves combining multiple products into a simple, easy-to-choose package. The process works in many ways, whether it’s bundling two similar items or creating an integrated solution by pairing two commonly purchased products. This solution can significantly reduce transportation costs and delivery times. It can also dramatically reduce your company’s combined costs.
What are value-added customized service solutions?
Value-added services can transform the supply chain, but it’s not a one-size-fits-all solution. Service providers need to understand the business model and pain points of a supply chain. With an effective solution, you can optimize your supply chain operations.
In addition to solving logistical challenges, an experienced service provider can also provide other long-term benefits. Customized value-added services can create delivery models that will improve inventory and transportation costs, improving your operations and saving you time and money.
Value-added service solutions can work across distribution channels to manage your company’s trucking capacity and assist with time-sensitive deliveries. Service providers can offer innovative advice and solutions to suit your business landscape and warehousing needs.
A significant benefit of customizing value-added services is improving your supply chain by identifying discrepancies in the process and taking corrective measures to improve them, so you can focus on customer satisfaction by providing optimal services.
Other value-added services in logistics: disposal, garment customisation, stain removal, cleaning, ironing, labelling, specific packaging.
For more information on value-added services contact www.eshoplostistic.com
