Check out the latest news about what we're doing, and the logistics industry

What Do Value Added Services Add To A Supply Chain?

What Do Value Added Services Add To A Supply Chain?

Well, obviously, the value added services add some value to your supply chain. However, there’s far more to these simple services than the obvious. This article is going to go through what value added services are and also what they can do to further support your supply chain.

First, a value added service is any service that is performed to meet customer demands, and add value to the processes of manufacturing and distribution. They should meet the high demands of your customers, who are looking for a product to arrive swiftly, effectively, and in perfect condition. So these services are designed to give all those benefits and ensure that they are done during the manufacturing phase.

Especially in retail, several of the things that might have been done in the store are being pushed onto the supply line side of things. For example, custom packaging that might have been done before the product hits the shelves is instead being done inside the warehouse before the package even hits the store itself.

Another common service is pre-assembly where goods are assembled in the warehouse before being forwarded to a manufacturer.

Not All Services Affect The Supplies Themselves

Of course, not all value added services affect what your warehouse is assembling. Some services affect the supply chain itself, such as functional testing and surface cleaning. Returns management and repacking goods are other services that would otherwise have to be done by a third party or be taken care of by the customer.

How To Plan For Value Added Services

Still, one of the biggest problems is that not every single item that your supply line produces is going to need value added to it. For example, if the service you are adding is a custom packaging for a product, not every customer is going to want that. This can cause a lot of problems because the service is optional and might not be integrated into the main chain of processes.

In this case, you need to take a look at what value added services you can offer for your customers, and how often those will be taken advantage of during the buying seasons. You need to figure out the volumes associated with each process and then where it can be done.

Additionally, figuring out where you can fully or partially automate the process of getting your services through the market can be helpful as well. Automation is always helpful, and it can even sort through the products that need extra value from the ones that do not. This alone can save your business time and money!

If you want to find a place where value added services are the normal way of operation and the supply chains flow fast and are customer forward, then you need to check out American Manufacturing Solutions. Our team will be able to help you out and get all of your supply chain problems solved with no trouble at all.

American Manufacturing Solutions

Proud St. Mary's Business

St. Mary's Chamber of Commerce Member

IWLA Member

© Copyright 2024 American Manufacturing Solutions. All rights reserved.