In today’s business world, it is more imperative than ever to find incredible ways for adding value-added services and products to your offerings. Owing to fast-growing markets and on-demand business requirements, Third-party logistics (3PL) 3PL Value-Added Services are extensively offering an array of modern amenities to stand out among the competitors.
Various companies use third-party logistics providers for delivering core fulfillment services like – warehousing, transportation, and shipping. They help businesses of all sizes in improving their operations and bottom line. These value-added services include everything right from specialized distribution, to customized labeling or final assembly.
Thus, businesses need to outsource their logistics and supply chain operations to get a competitive edge and save money on labor costs. It allows you to attract new customers and grow your business to the next best level.
Here we have discussed some of the most common value-added services with provided reasons to fuel your order fulfillment strategy -:
Common 3PL Value-Added Services
Value-added services in warehousing and logistics optimize your transportation, packaging, and storage costs and save you time. Some of the common value-added services by 3PL providers are -:
Kitting and assembling products are excellent ways for 3PL warehouses for adding value to the customers. Kitting refers to packaging a multitude of products together for sale. While assembling refers to arranging all individual parts of a product together. Together, they make them easy to pick and easy to track SKUs.
So, if you are bundling two of the same items and selling two for one, it is beneficial to create a consolidated solution of products into a single package. By delivering kitting and assembling services, 3PL providers can optimize the time and money spent on labor and packaging costs.
Blister Packaging is a type of pre-formed plastic packaging used mainly for pharmaceuticals and small consumer goods. It can protect items during shipping. If the blister packaging is done by 3PL, the point of sale can lower your shipping costs. It also limits the distance that the relatively fragile blister packages need to be shipped.
You can increase the perceived value of your product by adding initials or laser-etched inscriptions on the back side of any item. Various 3PL companies can personalize the products before they leave the warehouse. This not only adds value to your products but also saves you time during the supply chain operations.
Cross Docking is a kind of value-added service that helps businesses in shipping their products directly from one location to the other. You don’t have to store those products in between. This will help businesses in saving their storage costs and space and can easily ship their products directly to their customers without any additional hassle.
Every product demands a unique set of labeling that can be identified easily by different retailers or any government regulatory systems. And, with third-party logistics, you can save a lot of time and money.
Moreover, various markets from all across the globe have unique label demands. Therefore, third-party logistics has to ensure that products have the right information and correct label with duly checked shipping details and more.
So, if you want to stand out among your competitors and make your products top-of-the-mind recall, start providing labels to products.
How about providing value-added services through systematized return management?
Reverse logistics, also known as return management works in case where you want to repair or flag off damaged products and send them back to the manufacturer. It provides customers with a return shipping label, tracking items, and refunds or replacements if required. You may also offer repair services. This often builds the loyalty of customers and increases their trust in your products.
Disposal or Product Destruction
Third-Party Logistics does not necessarily focus on adding items to your packaging. It also takes of disposal of products that are damaged and cannot be resold or put to reuse. Such companies often segregate those products and recycle and dispose of them under safety concerns.
Products like perfumes think batteries or any dangerous goods are hard to dispose of and their disposable might be a higher cost VAS. But, it’s extremely imperative for your brand and the environment at large.
Retail Preparation Services
Retail preparation services predominately include attaching labels, RFID tagging, barcoding, and more to make products identifiable. Such services ensure that the products are tagged correctly as per the industry standard and country-specific laws and regulations.
By offering these services, 3PL providers can systematize your order collection and order stocking process and make them available to customers at the right time. Based on that, you can get a reminder in case of stock replenishment.
Managing Recurring Subscription Boxes
The trend of subscription boxes in the e-commerce sector is growing at a breakneck. These are recurring orders placed by customers. They will receive these products regularly.
By providing such service of timely managing and handling these subscription boxes, 3PL providers can bring new and vast business opportunities for their customers while creating an effective process for handling their orders.
Postponement is a logistics strategy used by 3PL providers for keeping a product in a standard format for as long as possible. Such products are made market-specific or customer-specific only when demand arises. In short, it postpones the customization of products until they are ready to be shipped out.
For an instance, a firm has a standardized product. It customizes when the customer orders for purchase. Customization happens in the case of packaging, labeling, assembling, or manufacturing. This VAS can help 3PL providers and clients in saving money and optimize their inventory storage costs.
International Trade Management
International trade management is an uncommon VAS that every warehouse or logistic provider can offer. It involves ensuring that all international compliances are followed during shipping internationally.
For an instance, International trade management includes – obtaining import and export licenses, abiding with payment tariffs and duties, complying with country customs rules, and more. By offering such VAS, 3PL providers can eliminate the risk of penalties or fines while trading across international borders.
Technology and Equipment Required to leverage VAS
Do you want to offer VAS to your customers? You will need these below mentioned the best technology and state-of-the-art equipment -:
- Warehouse Management System (WMS): Through WMS software solutions you can track, monitor and manage your stock levels. It lets you streamline your warehouse at multiple locations with a centralized approach.
- Shipping Software: It streamlines your entire shipping process from label creation to destination arrival and tracks your freight delivery at every level. This is a valuable investment if you are planning to offer shipment services to your customers.
- Packaging Equipment: As a part of value-added services, you will need to have the right packaging equipment in place like – Case Sealers and Case Erectors, packaging tables, conveyor belts, Sleeving & Cartoning, and wrapping machines.
- Special Equipment and Stations: You will also need specific stations and equipment as per the type of VAS. For an instance, if you are offering cross-docking services, you’ll need a warehouse with a loading dock layout. For kitting VAS, you’ll have a special corner for the packaging process.
Contact PL Solutions to avail of 3PL Value-Added Services
It’s extremely challenging to formulate a solid strategy for warehousing and logistics in today’s competitive business environment. However, PL Solutions offer all-inclusive 3PL Value-Added Services that can streamline your logistics and warehousing operations and boost your customer retention rate.
Our team of professionals works incessantly in assessing your business requirement and developing customized solutions to meet your specific needs. Feel free to call PL Solutions now and get a free quote for cost-effective value-added services!