The Importance of Value-Added Services

Why are Value-Added Services Important?

Companies are continually seeking methods to provide competitive advantages to their clients in
order to better meet their needs. They want to save space, time, and money while keeping their
inventory low and adjusting to their customers’ ever-changing purchase habits.
The wide range of value-added services provided by logistics experts for product management and
processes allow for the complete optimization of the entire supply chain. This helps regardless of
before, during, and after certain transport and stocking activities. VAS allows us to comply with
different industry standards and regulations and helping manufacturers to maintain their
competitiveness.
Furthermore, as shown next, these value-added services contribute to quality control by
incorporating operations such as packaging, labeling, or dunnage during warehouse pick-ups and
prior to distribution to the markets.
Hiring value-added services in the final stage of the supply chain allow manufacturers to meet all
of the quality assurance and product finishing standards that they promised to their customers.
This saves them time and money, which they may put towards their primary business of producing
new goods or expanding their markets and revenue streams.

Making Preparations for Value-Added Services

Planning value-added services present a number of issues. The first is that the volumes are
frequently seasonal and unpredictably fluctuating. Another issue is that some WMS (Warehouse
Management System) systems lack inventory tracking modules for value-added processing areas.
The major issue with value-added services is that they slow down procedures because they aren’t
connected to the rest of the order fulfillment process. Because the demand for any value-added
service, such as putting a pricing label, is uncertain, this is the case.
As a result, mapping the processes in a way that specifies what needs to be done and the volumes
connected with each of the processes is the first step in gaining control over them. It’s similar to
setting up a warehouse in that you’re thinking about quantities, manpower requirements, and
whether or not you can justify automation.
After mapping out operations, the next stage is to determine where the value-added processing
area will be located. You don’t want to enlarge your structure to accommodate value-added
services because it isn’t always a high-transaction area.
As a result, warehouse designers frequently advise clients to locate value-added services on a
mezzanine above the receiving dock or shipping dock, depending on whether the function can be
performed before or after the product are put away or sent.
Seasonal or occasional processes could be found in an area that is already being exploited for
something else. Carton labeling activities, for example, might be integrated into the same area
where customers do weight and tolerance checks, resulting in a more consistent flow of product
and improved space usage.