Logistics has changed. It's not only about moving product anymore. It's adding value at all points in the chain. As costs rise and margins tighten, value-added logistics services become critical.
Value-added services go beyond basic warehousing and shipping. They help companies do business more efficiently, pilot cost savings, and better service their customers. Let's explore which services are most impactful and how they aid a streamlined, efficient supply channel.
What Are Value-Added Logistics Services?
Value-added logistics services are additional services offered by logistics companies that have the potential to improve product value and efficiency across the supply chain. While standard logistics services typically include storage and shipping, value-added logistics include services such as kitting, assembly, custom packing, labeling, product quality checks, returns processing, and cross-docking.
By offering extra services, companies can make their processes easier, speed up order deliveries, and improve customer satisfaction. These added logistics services help businesses achieve better performance, cut costs, and ensure products are delivered accurately and in good condition. This ultimately leads to a more efficient supply chain.
Key Services That Help You Reduce Costs
Here are the effective value-added logistics services that are reducing your supply chain costs:
1. Kitting and Assembly
Kitting is defined as combining single items into kits that are ready to ship. Kitting reduces the time spent picking and packing separate items down the line. Kitting also helps improve order accuracy and, in turn, customer satisfaction.
2. Custom Packaging and Labeling
Custom packaging helps to save shipping costs through a reduction in size and weight. Custom labeling ensures that your goods comply with retailer and regulator requirements.
3. Quality Audits
Quality audits or inspections ensure that only acceptable product leaves your warehouse, to reduce return rates, reduce customer calls and complaints, and protect your brand.
4. Returns Management
Efficiency in returns logistics allows you to recapture value from returns, minimize the costs to process returns, and provide customers with a good experience with returns.
5. Cross-Docking
Cross-docks streamline the delivery process by eliminating the time spent in a warehouse or storage by loading inbound items directly to outbound trucks. In other words, cross-docking reduces both time on storage and handling.
How to Reduce Supply Chain Costs By Using VAS?
Are you looking to mitigate supply costs? Value-added services could provide some solutions. They work by:
- Reducing labor costs by outsourcing activities
- Reducing delays by providing better supply flow
- Minimizing inventory holding time
- Reducing product damage and product returns
Every step you can optimize adds up. Making small changes like switching to right-size packaging or pre-assembling your products can save you thousands over time.
Picking the Right Partner Matters
To take full advantage of value-added services, you will need to have a qualified logistics provider. Find a provider with the following characteristics:
- Experience with your kinds of products
- Ability to adjust & customize the scope of service
- Technology that offers real-time tracking
- Candid pricing without hidden fees
One reliable provider with a combination of all these benefits is Moov. They focus on unique logistics services, even value-added services, based specifically on your business. You get reliable service, quick to market, and industry-specific expertise.
Plan Smart: Include Value-Added Services
If you want to reduce costs and increase efficiency, now is the time to plan smart. Start by looking at your supply chain and the services you have in place. What delays, errors, or costs are your customers experiencing? After you identify those, you can ask yourself these questions:
- Can you bundle your products with kitting earlier?
- Is your packaging incurring additional shipping costs?
- Are you paying too much for returns?
In most cases, value-added logistics services are the answer! Reach out to Moov Logistics for expert guidance - you'll be amazed at how easy it is!
Conclusion: Take Control of Your Supply Chain
The best way to improve your logistics isn't always by spending more on it; it's by spending less and working smarter. With the proper value-added logistics services, you can improve efficiency, increase speed, and reduce costs throughout your supply chain.
Are you looking to know how to reduce supply chain costs, improve your logistics, and gain a competitive advantage? Discover value-added solutions customized to your needs at Moov Logistics, and take the next step to smarter and leaner operations.
