Selecting​ ​logistics​ ​value​ ​added​ ​services​ ​(VAS)​ ​to improve​ ​efficiency​ ​and​ ​flexibility

As​ ​consumer​ ​demand​ ​continues​ ​to​ ​rise,​ ​retailers​ ​must​ ​find​ ​new​ ​ways​ ​to​ ​further​ ​improve​ ​and refine​ ​their​ ​service​ ​in​ ​order​ ​to​ ​attract​ ​and​ ​retain​ ​customers.​ ​With​ ​a​ ​shift​ ​in​ ​shopping​ ​culture towards​ ​e-commerce,​ ​consumers​ ​now​ ​have​ ​their​ ​pick​ ​of​ ​a​ ​vast​ ​number​ ​of​ ​different​ ​retailers and​ ​products​ ​all​ ​from​ ​the​ ​comfort​ ​of​ ​their​ ​own​ ​home,​ ​putting​ ​customer​ ​choice​ ​at​ ​an​ ​all​ ​time high.

What​ ​are​ ​logistics​ ​value​ ​added​ ​services?

Logistics​ ​value​ ​added​ ​services​ ​can​ ​include​ ​product​ ​modifications​ ​which​ ​can​ ​increase​ ​the  level​ ​of​ ​personalisation​ ​to​ ​a​ ​consumer,​ ​this​ ​could​ ​include​ ​specialist​ ​packaging,​ ​returns processing​ ​and​ ​reticketing​ ​as​ ​well​ ​as​ ​services​ ​to​ ​make​ ​items​ ​compliant.

What​ ​are​ ​the​ ​benefits?

With​ ​the​ ​move​ ​from​ ​a​ ​product-centric​ ​model​ ​to​ ​a​ ​more​ ​consumer​ ​focused​ ​one,​ ​customer needs​ ​have​ ​also​ ​become​ ​more​ ​complex,​ ​with​ ​convenience,​ ​speed​ ​and​ ​a​ ​personalised approach​ ​now​ ​at​ ​the​ ​forefront. To​ ​stay​ ​ahead​ ​of​ ​the​ ​curve,​ ​specialist​ ​fulfilment​ ​and​ ​logistics​ ​companies​ ​are​ ​supporting retailers​ ​to​ ​help​ ​fill​ ​this​ ​gap​ ​in​ ​their​ ​offering.​ ​Fulfilment​ ​is​ ​central​ ​to​ ​the​ ​customer​ ​experience, and​ ​logistics​ ​value​ ​added​ ​services​ ​offer​ ​a​ ​way​ ​for​ ​retailers​ ​to​ ​greatly​ ​improve​ ​both​ ​their efficiency​ ​and​ ​flexibility,​ ​giving​ ​them​ ​a​ ​major​ ​competitive​ ​advantage​ ​in​ ​today’s
consumer-driven​ ​world.  

Types​ ​of​ ​logistics​ ​value​ ​added​ ​services

Rework

P​roducts​ ​and​ ​packaging​ ​can​ ​be​ ​subject​ ​to​ ​changes​ ​over​ ​time,​ ​and​ ​different​ ​countries​ ​can also​ ​have​ ​different​ ​packaging​ ​or​ ​labelling​ ​requirements,​ ​which​ ​need​ ​to​ ​be​ ​met​ ​before​ ​items can​ ​be​ ​distributed​ ​within​ ​the​ ​local​ ​market.​ ​​Reworking​ ​as​ ​a​ ​logistics​ ​value​ ​added​ ​service focuses​ ​on​ ​a​ ​range​ ​of​ ​services​ ​from​ ​repacking​ ​to​ ​relabelling​ ​finished​ ​items.​ ​This​ ​could​ ​be​ ​to meet​ ​sudden​ ​changes​ ​in​ ​demand​ ​or​ ​to​ ​provide​ ​country​ ​product​ ​compliance​ ​requirements.

Reworking​ ​products​ ​allows​ ​businesses​ ​to​ ​react​ ​to​ ​such​ ​challenges,​ ​avoiding​ ​potential​ ​delays and​ ​maximising​ ​sales. Finished​ ​products​ ​are​ ​often​ ​reworked​ ​to​ ​support​ ​upcoming​ ​promotions​ ​and​ ​sales​ ​by​ ​adding new​ ​swing​ ​tags,​ ​price​ ​tickets​ ​or​ ​stickers.​ ​​Items​ ​can​ ​also​ ​be​ ​repackaged​ ​when​ ​new​ ​branding or​ ​updated​ ​packaging​ ​is​ ​rolled​ ​out​ ​to​ ​get​ ​the​ ​most​ ​from​ ​older​ ​products,​ ​or​ ​when​ ​custom packaging​ ​is​ ​required​ ​for​ ​a​ ​promotion​ ​with​ ​a​ ​specific​ ​outlet.  

By​ ​avoiding​ ​the​ ​need​ ​to​ ​ship​ ​stock​ ​between​ ​a​ ​number​ ​of​ ​third-party​ ​sites​ ​or​ ​back​ ​to manufacturers​ ​to​ ​achieve​ ​this,​ ​on-site​ ​reworking​ ​as​ ​a​ ​warehouse​ ​value​ ​added​ ​service​ ​can​ ​be highly​ ​time​ ​effective​ ​and​ ​cost​ ​efficient​ ​for​ ​businesses.​ ​The​ ​flexibility​ ​it​ ​allows​ ​also​ ​means retailers​ ​are​ ​able​ ​to​ ​move​ ​quickly​ ​to​ ​take​ ​advantage​ ​of​ ​new​ ​sales​ ​opportunities​ ​as​ ​they happen. 

Packaging

The​ ​way​ ​a​ ​parcel​ ​arrives​ ​and​ ​a​ ​customer’s​ ​first​ ​impressions​ ​of​ ​it​ ​play​ ​an​ ​important​ ​role​ ​in creating​ ​a​ ​positive​ ​experience​ ​with​ ​a​ ​product.​ ​Packaging​ ​is​ ​a​ ​powerful​ ​way​ ​to​ ​convey​ ​a brand's​ ​image​ ​and​ ​values.​ ​It​ ​can​ ​shape​ ​the​ ​way​ ​in​ ​which​ ​a​ ​consumer​ ​views​ ​the​ ​product​ ​and sway​ ​how​ ​they​ ​feel​ ​towards​ ​a​ ​brand,​ ​both​ ​positively​ ​and​ ​negatively.​ ​Poor​ ​packaging​ ​can​ ​not only​ ​give​ ​the​ ​impression​ ​that​ ​a​ ​product​ ​is​ ​of​ ​low​ ​quality​ ​or​ ​has​ ​less​ ​value,​ ​but​ ​also​ ​makes​ ​for a​ ​poorer​ ​experience​ ​for​ ​the​ ​customer​ ​overall. As​ ​a​ ​logistics​ ​value​ ​added​ ​service,​ ​specialist​ ​packaging​ ​can​ ​include​ ​everything​ ​from​ ​branded shipping​ ​boxes,​ ​bags​ ​and​ ​tissue​ ​paper,​ ​to​ ​more​ ​custom​ ​pieces​ ​such​ ​as​ ​high​ ​quality​ ​gift boxes​ ​and​ ​garment​ ​bags.​ ​This​ ​allows​ ​retailers​ ​to​ ​reproduce​ ​a​ ​similar​ ​shopping​ ​experience which​ ​a​ ​consumer​ ​would​ ​receive​ ​in-store,​ ​and​ ​harness​ ​this​ ​to​ ​assert​ ​the​ ​brand’s​ ​values​ ​with consistency​ ​across​ ​multiple​ ​channels.

Quality​ ​control​ ​and​ ​compliance

The​ ​role​ ​of​ ​quality​ ​controllers​ ​is​ ​to​ ​ensure​ ​that​ ​all​ ​products​ ​which​ ​come​ ​into​ ​or​ ​leave​ ​a  warehouse​ ​are​ ​in​ ​saleable​ ​condition,​ ​are​ ​free​ ​from​ ​faults​ ​and​ ​include​ ​all​ ​of​ ​the​ ​correct components.​ ​This​ ​makes​ ​quality​ ​control​ ​as​ ​a​ ​warehouse​ ​value​ ​added​ ​service​ ​highly  beneficial,​ ​as​ ​any​ ​issues​ ​with​ ​a​ ​shipment​ ​of​ ​products​ ​can​ ​be​ ​spotted​ ​early​ ​on,​ ​and  appropriate​ ​action​ ​taken​ ​before​ ​it​ ​becomes​ ​a​ ​major​ ​problem.​ ​When​ ​combined​ ​with repairs​ ​as​ ​a​ ​warehouse​ ​value​ ​added​ ​service,​ ​these​ ​faulty​ ​items​ ​can​ ​be​ ​fixed,​ ​cleaned and​ ​repackaged​ ​on-site​ ​without​ ​the​ ​need​ ​for​ ​costly​ ​shipping​ ​back​ ​to​ ​the​ ​manufacturer,  or​ ​faulty​ ​items​ ​being​ ​distributed​ ​to​ ​stores.  

High​ ​standards​ ​of​ ​quality​ ​control​ ​help​ ​to​ ​improve​ ​customer​ ​satisfaction​ ​and​ ​can​ ​reduce the​ ​likelihood​ ​of​ ​returns​ ​too,​ ​as​ ​customers​ ​are​ ​less​ ​likely​ ​to​ ​receive​ ​items​ ​which​ ​are faulty,​ ​of​ ​poor​ ​quality​ ​or​ ​that​ ​don’t​ ​meet​ ​their​ ​expectations. 

Compliance​ ​is​ ​another​ ​aspect​ ​of​ ​quality​ ​control​ ​that​ ​can​ ​be​ ​undertaken​ ​and​ ​managed within​ ​the​ ​warehouse​ ​as​ ​a​ ​value​ ​added​ ​service,​ ​for​ ​example​ ​products​ ​requiring​ ​specific labelling​ ​for​ ​different​ ​international​ ​markets. 

To​ ​ensure​ ​international​ ​shipments​ ​reach​ ​their​ ​destinations​ ​on​ ​time​ ​and​ ​without​ ​issue,  retailers​ ​need​ ​a​ ​logistics​ ​partner​ ​with​ ​an​ ​extensive​ ​knowledge​ ​of​ ​worldwide​ ​customs  regulations​ ​and​ ​compliance.​ ​This​ ​service​ ​ensures​ ​that​ ​each​ ​shipment​ ​includes​ ​the  correct​ ​documentation​ ​and​ ​declarations​ ​for​ ​customs​ ​clearance​ ​and​ ​helps​ ​​minimise​ ​the many​ ​risks​ ​associated​ ​with​ ​moving​ ​goods​ ​across​ ​borders.​ ​​These​ ​extra​ ​checks​ ​provide  businesses​ ​with​ ​independent​ ​assurance​ ​and​ ​peace​ ​of​ ​mind,​ ​knowing​ ​that​ ​their  products​ ​will​ ​arrive​ ​at​ ​the​ ​right​ ​place​ ​and​ ​without​ ​any​ ​unexpected​ ​delays​ ​due​ ​to compliance​ ​issues. 

Returns 

When​ ​an​ ​item​ ​is​ ​returned​ ​by​ ​a​ ​customer,​ ​it​ ​must​ ​go​ ​through​ ​a​ ​series​ ​of​ ​actions​ ​to​ ​check  its​ ​condition​ ​and​ ​complete​ ​the​ ​returns​ ​process,​ ​before​ ​it​ ​can​ ​be​ ​reintroduced​ ​back​ ​into the​ ​stock​ ​pool. 

Handing​ ​this​ ​task​ ​over​ ​to​ ​a​ ​trusted​ ​logistics​ ​partner​ ​as​ ​part​ ​of​ ​their​ ​returns​ ​value​ ​added  service​ ​streamlines​ ​inventory​ ​management​ ​for​ ​retailers​ ​and​ ​allows​ ​items​ ​to​ ​be​ ​put​ ​back  into​ ​circulation​ ​before​ ​they​ ​become​ ​old​ ​stock​ ​and​ ​then​ ​need​ ​to​ ​be​ ​heavily​ ​discounted.  

Sometimes​ ​products​ ​will​ ​be​ ​returned​ ​by​ ​the​ ​customer​ ​to​ ​the​ ​returns​ ​centre​ ​unclean,  with​ ​faults​ ​or​ ​in​ ​an​ ​otherwise​ ​unsatisfactory​ ​condition.​ ​The​ ​ability​ ​to​ ​clean​ ​and​ ​rectify these​ ​faults​ ​means​ ​products​ ​can​ ​be​ ​quickly​ ​processed​ ​and​ ​reintroduced​ ​into​ ​the​ ​stock  pool.​ ​Being​ ​able​ ​to​ ​complete​ ​this​ ​task​ ​on-site​ ​not​ ​only​ ​saves​ ​time​ ​but​ ​also​ ​means  businesses​ ​are​ ​able​ ​to​ ​effortlessly​ ​maximise​ ​the​ ​profits​ ​of​ ​their​ ​inventory,​ ​as​ ​well​ ​as cutting​ ​down​ ​on​ ​waste​ ​and​ ​transport​ ​costs​ ​too.

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