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Logistics has its charm of complexity! Achieving supply chain efficiency can be a challenge that involves many factors and participants that come to play! According to research, 63 percent of organizations that use value-added services consider it a “very significant” business function.
It’s time to talk about your extended workbench: VAS, from planning to execution! Learn what Value-added services contribute to the growth of your e-commerce!
The logistics industry has grown into different shapes, forms, and sizes, therefore Value-added services have also evolved.
Value-Added Services are additional operations to your efulfillment. Your goods may be submitted to more processing upon your customer’s request or the nature of your business. It allows your business to be more competitive in its participation in the market with a tailored VAS. In this webinar, the reach of efulfillment operations umbrellas picking, packing, and shipping.
Its objective is to enhance the product and/or customer experience and/or uplevel your operation into efficiency!
If your business is looking into new opportunities such as:
- Implement subscription model
- Offer Customized Products
- Provide Seamless Returns
- Reach Supply Chain Optimization
- And more…
To achieve each goal, you may be considering or searching for the following VAS integration into your supply chain:
- Assembling
- Personalization
- Reverse Logistics…
We want to share the following essential key points to consider! This may apply for both inhouse or outsourced VAS. Currently, G-Global has explored Value-Added Services from relabeling to returns, helping each businesses reach a new potential!
Here are two scenarios that may also be what your business might be experiencing concerning product line innovation:
- An apparel brand decides to offer embroidering personalization for their new scrubs product line as a new project.
- A luxury luggage brand wants to offer personalized labeling for their customers which started in-house but identifies opportunities to optimize. Therefore, UV printing was required as Value-Added Service to be integrated into their fulfillment operation.
Let’s dive into the 3 phases of VAS: planning, implementation, and execution while piggybacking on our previous two examples.
PLANNING
If it’s your first time implementing VAS, you may need to define an in housing or outsourcing approach. Your team should ask, what is the transition cost to relocate? This not only includes financial costs but also the time needed and invested to complete your project timeline.
If your efufillment is already in 3PL hands, it makes commercial sense to do the same with your new VAS operations.
The planning phase of your VAS includes:
- Establishing reach of VAS, product specifications
- Detailing quality metrics and references
- Volume forecast and necessary capacity (machinery + workforce)
- Map out operation location and flow
It is important to keep in perspective make you stand out in the market!
Another suggestion is use your current warehousing layout only to accommodate value-added services. Keep in mind, they aren’t always a high-transaction area or to begin with but will generate revenue impactfully. We suggest exploring 3PL options with VAS experience may be a great start!
IMPLEMENTATION
Once all planning is done, it’s time to calculate the impact of your new value added service! Your new order processing and plan the efforts necessary to communicate correctly it to your customers. No matter how simple or complex, always add VAS production into your calculations.
Quality has a great role in the seamless integration and future execution of your VAS. Communication is key to ensuring the correct output is being produced. Therefore, mitigating the risk of having high-volume of back orders and scrap.
It’s important to detect possible misalignments as soon as possible! If the nature of VAS may not allow rework, it can create a new source of loss for the company.
WMS system capacity should be revised as information integration and flow is as important as the physical flow of goods. If your current WMS lacks inventory tracking modules, the visibility of your supply chain could be lost.
EXECUTION
Once the plan is set in motion, your quality metrics will dictate what successful execution will look like. To guarantee the continuous contribution of VAS to the growth of your brand, let’s look into the aftermath of VAS.
An action plan for returned items that have gone through VAS operations should also be accounted for. This may be discounted items or scrap to be disposed of. Another effort to guarantee seamless operations is the continuous retraining workforce before audits reflect the need to do it. Your WMS will play allow visibility across all your supply chain of volume increase in VAS modules,
For example, what stage of the process is each VAS product, and how many are there?
VAS MAKES LOGISTICS VALUABLE FOR EVERYBODY, EVERY TIME
Value added services is a door wide open to what your business can offer to your customers! Adding value across your supply chain can only be defined by the uniqueness of what you want to achieve. Many igrowing companies have leveraged growth and mitigated the risk of investment by implementing costly VAS in Mexico. 3PL partnership alleviates constrains our customers’ flexibility, so your ecommerce can focus all core activities and becoming more competitive!
