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January 14, 2009

11:48 PM

One of the key factor in value adding role is Service. Service is the main proponent for the customer to demand a specialised program tailored to thier needs.

Availability of goods when clients places order will usually lead to clients' satisfaction and enhances future sales.

Most clients look for a company which could provide them with a low price for their goods but also expect the company to provide them with good customer service, albeit at a premium. Example: Following up customer's request calls and accurate time of delivery.

Example of some value added roles by Warehouse:

Transportation Consolidation : warehouse would consolidate different suppliers' Less-than-Truck-Load(LTL) and ship a truckload to plant.
Product and Supply mixing
Service
Contingency Protection: It acts as a buffer stock(safety stock) against contingencies such as transportation delays.
Smoothing: Prevents expensive overtime at low production levels

Example of some value added services:

Labeling
Ink-Jet Printing
Component Assembly
Kitting
Re-packing/ Re-working
Trade fairs and events

Labeling:

Labeling ensures accuracy and security and follows international standardisation of bar coding. RFID tags may also increase overall security and visibility of the product.
Labeling also leads to time and cost reductions reduces errors by helping the integration of logistic operations internally and externally.
The Logistics Label bridges the physical flow of goods (using bar codes) and the electronic information flow (using Electronic Data Interface, EDI).
RFID tags such as those from Skyetek's embedded RFID, may also be used for including swing tags, kimball/security tags or labels such as price stickers and other promotional labelling - that are ready for retail display. This depends on the customer's needs.
Hence, this VAS increase the usefulness by increasing visibility either during shipment, or benefits the customer by providing security in retail purposes.

Ink-Jet Printing:
A VAS that tailors to customers needs such as printing on a wide range of substrate (material that provides a surface on which something is inscribed on) from vinyl and paper to glass and polyolefin. This is used for industrial graphic solutions, providing advanced inkjet printheads and latest software for customer. An example would be Advanced Inkjet Technology's services that they offered.

Component Assembly
Manufacturer's may put the responsibility of component assembly in the hands of the 3PL or total solutions provider to assemble sub-parts or components together later at the 3PL's premises. However, the 3PL must have expertise in handling such assemblies. An example would be DHL's 'Product assembly/ postponement strategy'. This Postponement strategy is useful as a logistical deferment technique, where the manufacturing or assembly process is delayed and customising them for local markets in the downstream supply chain - minimising of stockholdings and cutting inventory obsolescence. Hence, with lower obsolescence, holding costs is greatly lowered and reduce the need for more inventory storage space. Although constraint could be that Total costs must be evaluated before being implemented. This is because, such implementations may inrease its Total costs instead.

DHL also provides tailored packaging and bundling, hardware configuration, software installation, and localisation (e.g. addition of documentation and labels).

Kitting
Kitting, another method of postponement, is the addition of items such as inclusion of accessories and batteries into the product package. This is especially used in kitting of handsfree in handphone sets boxes or batteries for toys, before the product is packed and sealed to be delivered to customer.Kitting may include: component kit build, assembly line operations, packing, shrink-wrapping and blister packs.

Re-packing/ Re-working
Re-work or redress is the customisation or alterations made to products - often to suit a local market. It covers re-packing of finished product to support a customer's product launches and promotions, and can also include re-palletisation. Usefulness; this achieves the customer's goals when releasing a new product to the masses and needing to customise to differing local markets. Thus product launches could be released more quickly, giving an edge against its competitors.

Trade fairs/ Events
Another unique service includes delivering of exhibits, stands and promotional materials to trade fairs or events. However, 3PL with Distribution centres and employees located around the world are able to employ this strategy. It customises using the different transport modes and handling requirements as demanded by the customer.

Customers may benefit (usefulness) by:

gaining access to experts assisting in planning and coordinating worldwide fair activities
worldwide presence at important trade fair centres giving the expertise on site to support the customer's events
customs formalities and clearance expertise for ease and speeds up the process
high service flexibility ensuring customisation
complete range of exhibition services giving flexible options.

With such customer customisation, this service increases the customer service value tremendously.

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Take a look at these articles:
http://www.foodlogistics.com/publication/article.jsp?pubId=1&id=1407&pageNum=1

http://www.sanc.org.sg/frame_ship.htm

http://www.ferret.com.au/c/Advanced-Inkjet-Technology-244475/Inkjet-printing-solution-from-Advanced-Inkjet-Technology-n782893

http://www.dhl.com/publish/g0/en/services/log_services/solutions/distribution/v_a_s.high.html

http://www.columbusprecisionmouldings.co.uk/images/kitting_case1.jpg

http://www.abar.nl/images/Simple_Bag_Palletising.jpg

Labels: Value added services

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