Skip to content

Value Added Services for 3PL Warehouses

Image1

When you’re running a 3PL business, it’s important to continually look for ways to grow and improve your operations. One way to do this is by taking advantage of 3PL value-added services. These are services that go beyond the basic logistics offering and provide added benefits to your customers. In this article, we’ll discuss several value-added services that can help you grow your 3PL business along with software that will help you get the job done right.

What are Value-Added services (VAS)?

In the world of logistics, value-added services (VAS) are supplemental services offered by third-party logistics companies that provide added value to their customers. These extend beyond the core logistics offerings of warehouse and inventory management, order fulfillment, shipping coordination, etc.

Examples of value-added services include kitting, product assembly and packaging, returns processing, and more. Managing recurring subscription boxes is another example of a value-added service. These VAS can help third-party logistics warehouses streamline their operations while also providing additional revenue streams and customer satisfaction.

Definition and Benefits

Value-added services (VAS) are additional services offered by third-party logistics providers (3PLs) to enhance the customer experience and add value to their business operations. These services extend beyond traditional logistics and supply chain management functions, such as warehousing, transportation, and order fulfillment. By offering VAS, 3PLs can set themselves apart from competitors, build stronger relationships with their clients, and boost their revenue streams.

The benefits of VAS are many:

  • Improved Customer Satisfaction: By providing customized services tailored to specific customer needs and preferences, 3PLs can significantly enhance customer satisfaction and loyalty. This personalized approach ensures that clients receive exactly what they need, fostering long-term relationships.
  • Increased Revenue: VAS offer an additional revenue stream for 3PLs. By charging for these extra services, logistics providers can grow their business and improve profitability.
  • Competitive Advantage: Offering unique and valuable services allows 3PLs to differentiate themselves from competitors. This competitive edge can help them attract new clients and retain existing ones.
  • Cost Savings: VAS can help businesses reduce labor and shipping costs, improve inventory management, and streamline supply chain operations. These efficiencies translate into significant cost savings for both the 3PL and their clients.

Why are Value-Added Services Important for 3PLs?

Value-added services are important for 3PL businesses because they can help to improve customer satisfaction and build brand loyalty while meeting consumer demands. Offering these extra services gives customers convenience and peace of mind, which helps to increase sales and profitability for 3PL companies. Additionally, VAS can help 3PL companies differentiate themselves from their competition, allowing them to stand out in a crowded market.

How 3PL Value-Added Services Help You Grow Your Business

As we mentioned, when 3PL businesses offer VAS, they can more easily differentiate themselves from their competitors and stand out in the marketplace. This allows 3PL companies to win more business and grow their customer base. Additionally, VAS allows 3PL businesses to increase their profits by charging for the extra services they offer.

Which Value-Added Services Will Help You Grow Your Supply Chain Business?

There are many value-added services that you can offer to help grow your 3PL business. Some of the most popular VAS include:

Kitting and Assembly

3PL businesses can offer kitting and assembly services to customers who need products packaged together. Kitting is an efficient way for customers to receive multiple products in one package. For example, a customer may need 10 individual items packaged together into one kit. 3PL companies can offer this service and charge accordingly.

Assembly services involve putting products together in a way that makes them easier to use or more attractive. For instance, customers may need their products disassembled and then reassembled into another form before they are shipped out. 3PL businesses can offer this value-added service in order to improve the customer experience and increase their own profits.

Reverse Logistics and Returns Processing

Reverse logistics, or returns processing, is a service in which 3PL businesses can help by processing returned products that customers don’t want. Offering to process returns is especially beneficial for eCommerce businesses, as consumers expect a hassle-free returns process these days.

This VAS helps eCommerce retailers and other clients by eliminating the hassle of having to deal with the process themselves and saves them time and money. Additionally, returns management offers 3PLs an additional revenue stream as they can charge for handling the returns process.

Personalization Services

Personalization services involve customizing products for customers or creating new products that meet their specific needs. Examples of personalization services include engraving, vinyl wrapping, and labeling. Personalized products have a higher perceived value among consumers, which can help 3PLs win more business and increase their profits.

Labeling and Packaging

Labeling and packaging services involve creating attractive packaging that makes products more appealing to customers. 3PL businesses can offer this service by designing custom labels and boxes, which can help a company stand out in the market. Additionally, helping with client packaging and branding needs can help 3PLs become an all-in-one service provider.

worker inspecting inventory

Quality Control

Quality control and quality assurance services involve ensuring that products meet the required standards before they are shipped out. 3PL businesses can offer this service by conducting thorough inspections of products and using advanced testing techniques to ensure that all items meet industry standards. By offering quality control services, 3PLs can increase customer satisfaction and loyalty, while also reducing defects and improving their reputation in the market.

Subscription Boxes

Recurring subscription boxes are a great way for 3PLs to offer customers convenience and value, and managing recurring subscription boxes can streamline logistics and enhance customer satisfaction. Subscription boxes can include custom products or a variety of items from different suppliers that are packaged together in one box. This service helps clients save time and manpower, while also providing them with an all-in-one solution. Additionally, 3PLs can charge a premium for subscription boxes and earn a higher profit margin in the process.

Blister Packs

Blister packs are a type of packaging in which products are sealed or “blistered” between two layers of plastic. This provides protection from dust and dirt, as well as prevents tampering. Blister packs are ideal for fragile items that need to be shipped safely and securely. They are often used in pharmaceuticals and healthcare products. 3PL businesses can offer this specialized packaging and packing process to customers who need their products to be securely packaged and protected during transit.

These are just a few of the value-added services that 3PL companies can offer to help them grow their business. Of course, there are a broad range of other supplementary logistics functions that can be offered to add value to supply chains. These include rework, product disposal, export and international shipping coordination, etc.

Implementing Value-Added Services

Implementing VAS requires careful planning and consideration of several key factors:

  • Customer Needs: Understanding the specific needs and preferences of your customers is crucial. Conducting surveys, interviews, and market research can help 3PLs identify which VAS will be most valuable to their clients.
  • Technology and Equipment: Investing in the right technology and equipment is essential for supporting VAS. This includes software for inventory management and tracking, as well as specialized equipment for packaging, assembly, and customization.
  • Staff Training: Ensuring that your staff is well-trained to provide high-quality VAS is vital. This includes training in customer service, packaging, assembly, and any other relevant areas.
  • Partnerships: Forming partnerships with other companies can be beneficial for offering certain VAS. For example, collaborating with experts in international trade compliance or vendor managed inventory can enhance the range of services you provide.

Technology and Equipment Required

The technology and equipment required to offer VAS will vary depending on the specific services provided. Some common examples include:

  • Inventory Management Software: Essential for tracking and managing inventory levels, including receiving, storing, and shipping products. This software ensures that inventory is accurately monitored and efficiently handled.
  • Packaging and Assembly Equipment: Necessary for services such as kitting, assembly, and customization. This equipment helps streamline the packaging process and ensures that products are assembled correctly and attractively.
  • Shipping and Tracking Software: Crucial for managing and tracking shipments. This software helps with carrier selection, rate negotiation, and real-time tracking of shipments, ensuring timely and cost-effective delivery.
  • International Trade Compliance Software: Important for managing and complying with international shipping regulations. This software assists with obtaining export and import licenses, managing tariffs and duties, and ensuring compliance with global trade laws.

The Benefits of Offering Value-Added Services

Offering VAS can bring numerous benefits to 3PLs, including:

  • Differentiation and Competitive Advantage: By providing unique and valuable services, 3PLs can differentiate themselves from competitors and establish a competitive advantage in the market. This helps attract new customers and retain existing ones.
  • Increased Revenue: VAS provide an additional revenue stream for 3PLs, helping to grow their business and improve profitability. By charging for these extra services, logistics providers can enhance their financial performance.
  • Improved Customer Satisfaction: Customized services that meet specific customer needs and preferences lead to increased satisfaction and loyalty. Happy customers are more likely to continue doing business with you and recommend your services to others.
  • Cost Savings: VAS can help businesses reduce labor and shipping costs, improve inventory management, and streamline supply chain operations. These efficiencies result in significant cost savings for both the 3PL and their clients.

Differentiation and Competitive Advantage

Offering VAS can help 3PLs differentiate themselves from competitors and establish a competitive advantage in the market. By providing unique and valuable services, 3PLs can:

  • Attract New Customers: Services that meet specific customer needs and preferences can attract new clients, helping to grow your business.
  • Retain Existing Customers: High-quality VAS build stronger relationships with existing customers, increasing their loyalty and reducing churn.
  • Increase Revenue: VAS provide an additional revenue stream, helping to grow your business and improve profitability.
  • Improve Market Reputation: Offering VAS can establish your 3PL as a provider of high-quality, customized logistics and supply chain management services. This reputation can enhance your market position and attract more business.

By focusing on these aspects, 3PLs can leverage VAS to gain a competitive edge, increase their revenue, and build lasting relationships with their customers.

How to Begin Offering a New Value-Added Service?

In order to begin offering 3PL value-added services, 3PL companies will first need to have the right software in place. For instance, ASCTrac® Software is a powerful 3PL management platform that helps 3PL businesses manage their operations more efficiently and effectively. With ASCTrac®, supply chain companies can easily configure new VAS and begin offering them to customers right away.

Aside from software, 3PL companies should also ensure that they have the right staff and processes in place to manage their VAS. 3PLs should consider hiring additional staff if needed, or training existing staff on how to properly manage new VAS.

As for equipment and facilities, 3PL businesses should consider investing in additional equipment, such as labeling machines, blister packs machinery, and potentially more. Additionally, 3PLs may need to invest in additional warehouse space or facility upgrades in order to accommodate their new VAS.

By taking the time to properly plan and prepare for VAS, 3PL businesses can ensure that they are offering the best 3PL VAS possible.

ASCTrac® Software for Logistics and Supply Chain Management

ASCTrac® Software is the perfect 3PL management platform for third-party logistics businesses that are looking to implement value-added services. ASCTrac’s software provides logistics providers with powerful tools and features that help them manage their operations more efficiently and effectively.

With ASCTrac®, third party logistics providers can easily configure new VAS and begin offering them to customers right away. Logistics providers can also use their software to manage their warehouses, track orders, and streamline their operations.

Conclusion

Overall, offering 3PL value-added services is a great way to differentiate your business from the competition, make money meeting consumer demands, and help you grow your 3PL business. With the right software and processes in place, 3PL businesses can start offering VAS quickly and efficiently. If you’re looking for a powerful 3PL management platform to help you offer VAS, then look no further than ASCTrac®. Get in touch with us today to learn more about how our software can help your business grow!

Recent Posts

Table of Contents

Subscribe to the latest blogs and best practices

Questions or Want More Information?