Why you should consider Value Added Services in logistics

Value Added Services (VAS) in logistics are additional services that go beyond delivery, storing and transportation services. These services are intended to add value to the transported item and enhance the customer experience. Value Added Services can be provided at various points along the supply chain, from manufacturing and packaging to distribution and transportation.

Examples of Value Added Services include product customization, packaging and labeling, inventory management, and transportation management. These services can help you meet the unique needs of your customers, as they increase efficiency and productivity, reduce costs, and may create an advantage on your competitors


Value Added Services in logistics

Value Added Services (VAS) in logistics are additional services that go beyond delivery, storing and transportation services. These services are intended to add value to the transported item and enhance...


What is 3PL? What are the benefits?

Nowadays, third party logistics (3PL) companies are an important part of the supply chain. But what is 3PL and more important, what can be in it for you? 3PL companies...

Logwise Group B.V. - Icoon

What is 3PL?

3PL is short for Third Party Logistics. This refers to a third party that provides the warehouse and delivery services for your company. The provider enables you to manage storage and order picking as well as a number of other helpful tasks. 3PL firms can help you fill in the gaps in your company’s supply chain. Their expertise, best practices and technologies enables them to integrate your business processes and solve the most complex challenges in logistics management. This will make your supply chain more agile and responsive, which obviously is a large advantage in today’s uncertain market environment.

What are the benefits of 3PL?

Reduce the costs

Third party logistic companies specialize in logistics, so they have an advanced distribution system. They will have more leverage during negotiations, and they can also provide better volume discounts for you. All of this can cut down overhead costs. By partnering with a 3PL provider, you will also save on making huge infrastructure investments as they can provide transportation, warehouse spaces, staff, tracking technology and much more.

Reduce the Burden on Your Business

By allowing your third party company to handle specialized parts of your business, your transportation process can be handled better. It allows you to focus on one job, which in turn frees up your time and resources. Outsourcing logistics will give your organization the opportunity to focus on your core competencies instead of getting involved in the management of non-core but critical functions. Your business can enjoy the benefits of the logistical expertise of the 3PL company without having to burden internal resources.

Improve customer satisfaction

3PL providers can help to improve order accuracy because of their extensive knowledge of warehouse management and order fulfillment processes. This helps to reduce the number of incorrect or damaged orders, resulting in fewer customer complaints. Also, 3PL companies can improve delivery times, inventory management, tracking and visibility, order accuracy, and customer service support. By improving these aspects, you will be able to enhance customer satisfaction and build long-term relationships with your customers.

3PL -what is it?
value added services in logistics

Flexible and scalable

Flexibility is key in all supply chain stages: contracting a 3PL provider means having flexible logistics and production processes. This ultimately guarantees the availability of stock for end customers. 3PL providers offer flexibility to scale up or down logistics operations based on your business needs. They are able to quickly adapt to seasonal demand, overall changes in demand or inventory levels. The time and money you save on infrastructure and property, can be used to investment in expanding your company. For growing businesses wanting to scale internationally, the experience of third party logistics companies is vital.

Gain a competitive edge

It is apparent that effective logistics management takes energy and time. When working with a third-party logistics company, you are not required to bear the costs for infrastructure, floor space or personnel. Besides a reduction in costs, the improved customer satisfaction and focus on your core business will give you an advantage on your competition.

6 steps to find the best 3PL provider for your company

  1. Document and define all your requirements in supply chain, and the expected results. Also, state your priorities and note what logistical tasks will be performed by in-house staff.
  2. Create an internal team that will be in charge of selecting and working with the 3PL partner. Working with an external partner will impact multiple stakeholders within your company, so it is important to have them all on board.
  3. Check if the 3PL provider of choice has sufficient capacity to upscale when needed.
  4. Is the provider able to customize the range of services offered? The ideal solution may vary from business to business, and it is important to find out if the provider can meet your specific needs.
  5. Ask your potential 3PL partner for client references. Feedback of existing clients can be an excellent indicator of performance, service and reputation.
  6. Make sure the third party logistics company is financial healthy. You do not want to face unexpected risks when the company of choice all of a sudden cannot deliver the agreed services.
what is 3PL - Logwise Group

Experienced third party logistic providers, like Logwise Group have been trained to develop services that are precisely tailored for the needs of your company. Your business will benefit from their decades of expertise in logistics, while you can fully focus on your core business.