• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » 3PLs Jump Into Valued-Added Services

3PLs Jump Into Valued-Added Services

December 30, 2010
SupplyChainBrain

The definition of a value-added service depends on the customer for whom it was designed. In all cases, however, it goes beyond the old-style model of warehousing, based on "pallet in, pallet out." Faced with higher costs and uncertain markets, customers over the years have transferred more of their internal processes to third-party providers. The strategy allows them to focus on their core competencies, and make best use of limited capital.

"Value-added services are those things that don't fit the model of old contract logistics," says Sargunaraj. Examples include specialty packaging, display building, kitting and the customizing of product for specific end markets.

One of the most common forms of value-added service today is postponement, whereby a generic product is configured at a late stage to meet the needs of a particular region or group of customers. Power adapters and manuals are among the electronics items that can be customized at this point in the fulfillment process. One of UTi's distribution centers is devoted entirely to non-product-oriented items such as displays and packaging, Sargunaraj says. Postponement also works further up the supply chain, with suppliers serving manufacturing sites with sequencing, light assembly and other processes.

The desire for cost savings is the first and most obvious motivation for a company to seek help from a third-party logistics provider. But it's more than a case of slashing overhead, says Sargunaraj. A strong logistics outsourcing relationship can lead to reduced costs in less obvious ways, such as decreased cycle time. Sargunaraj cites the example of a Canadian cell-phone maker who had been relying on one group of individuals to store the product, another to do the blister packaging, and a third for finished-goods warehousing. UTI took over the entire process and reduced a 21-day cycle time to between two and three days. In the process, he says, the customer achieved greater flexibility in the marketplace, along with lower costs.

To view this video in its entirety, Click here

RELATED CONTENT

RELATED VIDEOS

Logistics Global Logistics Logistics Outsourcing LTL/Truckload Services Transportation & Distribution Inventory Planning/ Optimization SC Finance & Revenue Management SC Planning & Optimization Sourcing/Procurement/SRM Supply Chain Visibility Transportation Management Quality & Metrics All Warehouse Services Order Fulfillment Warehouse Management Systems
KEYWORDS All Warehouse Services Global Logistics Inventory Planning/ Optimization Logistics Logistics Outsourcing LTL/Truckload Services order fulfillment Quality & Metrics SC Finance & Revenue Management SC Planning & Optimization Sourcing/Procurement/SCM Supply Chain Visibility Transportation & Distribution Transportation Management Warehouse Management Systems
  • Related Articles

    3PLs Jump Into Valued-Added Services

    3PLs: Expedited Carrier Services & Outsourcing in North America

    Jump Technologies Unveils Route-Optimization Functionality

  • Related Directories

    Kuebix

    SnapFulfil

SupplyChainBrain

100 Great Supply Chain Partners Issue 2009

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: U.S. States Get Boost in Doses; Global Cargo Jam Could Last Into 2022

    Coronavirus
  • Robotic automation

    Autonomous Supply Chains Are on the Horizon

    Coronavirus
  • Shipping Logjam

    U.S. Retailers See Millions in Sales Delays Amid Shipping Logjam

    Coronavirus
  • Walmart

    Walmart Embraces a Local Fulfillment Model for Grocery

    Logistics
  • How Can E-Commerce Retailers Compete?

    Smaller E-Tailers Weigh Pros and Cons of Fulfillment by Amazon

    Logistics

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
GreyOrange Honeywell Intelligrated Infor
Inmar Kibo Commerce Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Paccurate
Ports America Purolator QAD Precision
Red Classic Riskmethods Snapfulfil
TGW Systems Transportation Insights Watson Land Company
Westfalia Technologies Workjam Yang Ming
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing