Whether you're the head of a toy, electronics or packaged goods company, it's imperative to seize the opportunities that present themselves, this is where value-added logistics comes in. Normally, logistics tends to focus on areas such as offering better prices or delivering quickly. But it is important that a brand differentiates itself among the competition, this is called added or added value. It even plays a key role in making all other aspects of the trade run successfully.
What is Value Added Logistics about?
This methodology is called in various ways, Value Added Services (VAS) or with Logistics, being LVA the acronym, among others. This seeks that the products or services go beyond what is expected, in quality and offer, satisfying customers. That is why it is called “Value Added” because it is a plus that is added to a service so that consumers prefer it over another.
As entrepreneurs, everyone seeks to be a pilot or the favorite of niche customers. And for that reason it has become essential to stand out in the logistics field. This is closely related to being able to change for the better. Satisfying the needs of the market while generating profits for the company.
Value Added Types
Chilean supply chain dynamic leader Marco Ortega explained that there were two ways that VAS could be used in businesses. Dividing them into two types, the Value Added in terms of processes and the Value Added oriented to the product. The first one has a qualitative orientation, it goes towards the optimization of the processes. Whether they are transport, distribution, control, that go with what the customer needs and wants.
On the other hand, the Added Value oriented to the product, are the processes of transformation or adaptation of the service. It can be labeling, sensor tracking, kitting, which is the name of the assembly in logistics, promotions, among others. Everything depends on the company, for example, if it is oriented towards promotions.
Subclassification based on solutions
Companies that already apply LVA focus it on various areas to have greater performance. We will name some of the most used to demonstrate how versatile this methodology can be.
● Personalization and packaging, in this case oriented towards logistics, has nothing to do with how it looks. It is more towards the way in which various products are classified in a proper and organized way. The LVA intervenes in this search to do this in the shortest time, saving money when it comes to packaging.
● Storage, you have to do an analysis at deep levels of all materials and products. It is a priority for those companies that handle perishable merchandise, because it will be organized in such a way that there is never a risk of loss. In addition to controlling more flexible hours in warehouse exits and entrances.
● Personalized transport, the service that denotes an adaptation to each client is more attractive. Therefore, if different types or modalities are mixed, more people can be reached and more comfortably.
● Tracking, before users only cared that their purchase was at home and that it was exactly what they paid for. Today they are more concerned with what happens to their merchandise while logistics supports reports, contact numbers and applications where you can track them. If you show your processes transparently, you will build trust, because the customer will feel that he has control over his purchase.
Value Added Logistics Advantages
Provided that what is indicated by the logistics of the LVA is strictly complied with, the benefits will be increased. Quality, efficiency, sustainability and even costs will be reduced thanks to productivity. So it is ideal because being a distribution or storage service provider you will be able to satisfy the demand. And thanks to timetable corrections you can make deliveries on time, without risk of delays.
Each of the links that make up the chain, up to the final product, can affect the results if there are setbacks. But Value Added reduces this margin of error to a minimum. Resulting in successful businesses that increase the amounts of profit for everyone involved.
Owning Value Added Logistics is the key
Associating your work pace and ideas with what the client is looking for and requires is the perfect combination for a solid company. Hiring third parties to advise on this type of methodologies or tools is an investment that you will be grateful for in the future. Allow yourself to have all the possibilities offered by value-added logistics at your fingertips.
