3PL Providers: Why Value-Added Services Matter and What You Should Offer
January 11, 2023
Reading Time: 5minutes
3PLs are under pressure to differentiate themselves and add value beyond simply being a supply chain logistics provider. While transportation and warehousing remain the bread and butter of 3PLs, offering value-added services (VAS) is becoming increasingly important to win and retain business. This guide will explore why VAS matters for 3PLs and specific ideas of what you can offer your customers. We’ll also take a look at Argos ABECAS Insight software – an industry-leading solution for managing VAS and your entire 3PL supply chain management business.
What is a Value Added Service in Third Party Logistics?
A value-added service is any additional service third-party logistics providers can provide to their customers beyond the basic transportation and storage of goods. These can be a broad range of services – anything from packaging and kitting to inventory management and returns processing.
The goal of a VAS is to add value for the customer – hence the name. By offering additional supply chain services, 3PLs can increase their company’s perceived value in clients’ eyes.
Why 3PLs Need to Offer Value-Added Services
The 3PL industry is extremely competitive. In order to win and retain business, 3PLs need to offer their customers more than just the basics. Customers today are looking for providers who can offer a comprehensive solution to their logistics needs.
In addition, 3PLs need to find ways to add value and improve efficiency in order to stay competitive in the supply chain business. The pressure is on to find innovative ways to streamline logistics operations and offer a better customer experience.
Value-added services are one way 3PLs can accomplish these goals. By offering VAS, 3PLs can:
Increase Revenue: VAS are a great way to boost revenue and grow your supply chain management business. Offering additional services gives 3PLs the opportunity to upsell and cross-sell their customers.
Build Customer Loyalty: Customers today have more choices than ever before. In order to build customer loyalty, 3PLs need to offer a comprehensive solution that meets all of their needs. Offering VAS is one way to accomplish this by meeting consumer demands and increasing customer satisfaction. The value-added services provided ensure that the 3PL is an indispensable part of their customer’s business.
Differentiate Themselves from the Competition: 3PLs need to find ways to stand out from the crowd. Offering value-added services is one way to do this. By offering unique services, 3PLs can differentiate themselves from their competitors and win new business.
Types of Logistics, Supply Chain, and 3PL Value Added Services to Offer
3PLs can offer a wide variety of value-added services. The best VAS for your supply chain management business will depend on your specific industry and customer base. However, there are some value-added services that are popular among 3PLs. These include:
Negotiating Shipping Rates
3PLs can help their customers get the best possible domestic and international shipping rates. By negotiating with carriers on behalf of their customers, 3PLs can help them save money in shipping costs and improve their bottom line.
Kitting and Assembly
Kitting and assembly are two popular value-added services among 3PLs. These services involve putting together products or components into a single unit. This can be a time-consuming and complex process, but 3PLs have the expertise and resources to get the job done quickly and efficiently.
Inventory Management (IM)
IM is another popular value-added service that’s necessary for a large number of supply chains. This service helps customers keep track of their inventory and ensure that they have the products they need when they need them. 3PLs can also help customers reduce their inventory levels and save money.
Packaging and Crating
Packaging and crating are two more value-added services that are popular among 3PLs. These services involve packaging and shipping products so that they arrive at their destination safely and on time. 3PLs have the experience and expertise to ensure that products are properly packaged and protected during shipping.
Reverse logistics and returns processing are necessary parts of many of today’s supply chain businesses. This VAS helps customers return products that are damaged, defective, or otherwise unsuitable for sale. 3PLs can help customers save money by managing the return process and ensuring that products are returned to the right location.
Repackaging and Rebranding
Repackaging and rebranding are two additional value-added services that 3PLs can offer their customers. These services involve repackaging products so that they meet the customer’s specific requirements. 3PLs can also help customers rebrand their products so that they stand out from the competition.
Personalization and Customization
Personalization and customization are two more value-added services that 3PLs can offer. These services involve creating custom products or packaging for customers. 3PLs can also help customers personalize their products so that they reflect the customer’s unique personality or style.
Labeling and Barcoding
Labeling and barcoding are two more value-added services that 3PLs can provide to their customers. These services involve creating labels and barcodes for products so that they can be easily identified and tracked across the entire supply chain. 3PLs can also help customers create custom labels and barcodes for their products.
Product disposal is a VAS that helps customers dispose of products that are damaged, defective, or no longer needed. 3PLs can help customers save money by disposing of products in a safe and responsible manner.
Retail preparation is a value-added service that helps customers prepare their products for sale in retail stores. 3PLs can help customers save time and money by preparing their products for retail sale.
Sorting and Inspection
Sorting and inspection are two more value-added services that 3PLs can offer their customers. These services involve sorting products so they are easy to find and inspecting them for quality assurance and defects. 3PLs can also help customers save time and money by inspecting products before they are shipped.
Some 3PLs offer export management as a value-added service. This service helps customers ship their products to other countries. 3PLs can help customers save money and time by managing the international shipping process and ensuring that products are properly packaged and protected during transit.
Managing Subscription Boxes
Managing subscription boxes is a value-added service that helps customers manage their subscription-based, recurring products. 3PLs can help customers save time and money by managing the subscription process and ensuring that products are shipped to the right location.
Technology Required for Value-Added Services
3PLs that offer value-added services must have the right technology in place to support these services. 3PLs need to have a robust warehouse management system (WMS) in place to manage inventory and orders. Some 3PLs also integrate a transportation management system (TMS) to manage shipping and logistics. Third-party logistics providers that offer value-added services should also consider investing in a software solution like Argos ABECAS Insight. This software provides the ability to track and manage many value-added services.
Argos ABECAS Insight Software: The Ultimate Solution for 3PLs
Argos ABECAS Insight is an industry-leading software solution for 3PLs. Offering a comprehensive suite of tools, Argos ABECAS Insight helps 3PLs manage their business and offer value-added services to their customers.
A central database for managing customer information, orders, inventory, and more
Real-time tracking of inventory and orders
Automated order fulfillment and shipping
Advanced reporting and analytics tools
And much more
With Argos ABECAS Insight, 3PLs have everything they need to succeed. Argos ABECAS Insight also includes a mobile app that 3PLs can use to track value-added services on the go.
Value-added services are an important part of the 3PL business. 3PLs can offer a variety of value-added services to their customers, including:
Repackaging and rebranding
Labeling and barcoding
Sorting and inspection
Managing subscription boxes
Argos ABECAS Insight is the industry-leading software solution for 3PLs, offering a comprehensive suite of tools to help 3PLs manage their business and offer value-added services to their customers. Contact Argos Software today to learn more about ABECAS Insight and how it can help your business grow.
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Argos’ ABECAS Insight is all-in-one business management software that’s flexible and modular, offering the functionality of an enterprise (ERP) solution at a fraction of the cost. ABECAS Insight is ideally suited for companies in 3PL, transportation, agriculture, field service, and utility industries, and for small- and medium-sized businesses selling to other companies (B2B).
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