Adding Value to Your Supply Chain

Demand to supply the optimal customer experience continues to escalate, and corporations must continually hunt down better ways to deliver customer satisfaction and retention. Many companies find that value-added logistics services assist in giving their supply chain a competitive edge. Once limited to services like shrink-wrapping, display building, and rainbow pallets, value-added capabilities now include everything from inscription and embroidery to configuring kits for e-commerce or inserting coupons or brochures in packages.

Wondering if it is time to feature value to your supply chain? Duane Sizemore, senior vice chairman, marketing and business development with Saddle Creek Logistics Services, examines how value-added services can benefit your business.

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1. Expand product offerings. From building gift baskets to making twin-packs, value-added services assist in giving your customers more buying choices.

2. Get products shelf-ready. Value-added services like price marking, tagging, and display building help to streamline the method of getting products on store shelves.

3. Enhance customization capabilities. Personalization is one of today’s hottest trends. Want to supply a choice of embroidered logos on apparel? Allow customers to settle on the faceplate for their cellphone? Value-added services can assist you to deliver.

4. Manage inventory more efficiently. With the power to customize products, you are able to stock fewer SKUs, thereby reducing the value of carrying and managing inventory.

5. Reduce the number of suppliers. By asking your existing partners to perform more value-added functions, you’ll reduce the number of suppliers and streamline your supply chain. Even materials like cardboard for displays are often shipped to a third-party logistics (3PL) provider to be built and sent out with customer orders to eliminate one step within the process.

6. React faster to changing business needs. With value-added operations on the brink of the top customer, you’ll delay product configuration until the last possible minute to reply more accurately to customer demand.

7. Manage transportation costs. The closer packaging facilities are to manufacturing operations, distribution centers, or end destinations, the more affordable you’ll transport products.

8. Control labor costs. With automated solutions and careful review of supply chain processes, value-added services can help eliminate downtime and reduce the number of touches required within the packaging process—ultimately saving money on labor.

9. Ensure continuous improvement. If your team with a 3PL, they will assist with process reengineering, packaging needs assessment, component purchasing, and supplier evaluation to make sure value-added services are delivering what customers demand.

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10. Find a partner. Incorporating value-added services are often challenging. Experienced 3PLs are often valuable allies. they provide the pliability and resources to accommodate unique requirements, seasonal fluctuations, and business growth. Many of today’s 3PLs approach value-added services with a spirit of collaboration.