Benefits Of Supply Chain Value Added Services

The process to provide customer more than a service or a good is never ending and it goes on and on, especially if it is the case of supply chain industry. Adding value to the logistics or warehouse services helps a supply chain company to gain a competitive edge. This value can be in any form like new technology in distribution or storage process, new methods in packaging and labelling material or use of new pallets to easily transport goods from one place to another, the list can be as long depending on the company size and operations.

Nevertheless, there are various ways to add value to the process, the area under this is completely experimental and doesn't require any strict rule of thumb or guiding force. Down below are the few benefits of adding value to the supply chain activities in the long run.

Expanded purchases

If there are additional gift baskets and twin packs along with the main product then customers will feel enlighten and special and this way customers will buy more of that product.

Labour cost is controlled

If more progressive and automated machines and equipment are used, then there will be no hindrance or defect in the activity or operations of labours and this way bulky cost and downtime will be controlled.

Inventory Management Will Be Effective

With the increase in the ability of the products or goods, there will no need to have high SKU (stock keeping unit), this way the cost of carrying and managing the inventory will be minimised.

Helps to reach the products to market

By involving various value-added functions like price marking, tagging and display building, the products or goods gets the more chance to get featured on the shelves of the various stores or outlets for the customers to buy.

Continuous Improvement in the Process

With more diversity in the process of the operations or daily activities, it becomes easy to see the overall improved productivity and operations run in a smooth and cost-effective manner as well.

Safer Transportation

With the strong, sturdy and improved packaging for the transfer of goods, the transportation will become safe and cost-effective for both the parties involved and the goods will reach their desired destination safely.

The above are the few benefits of implementing supply chain value added services that a third party supply chain company use to improve their efficiency and customer satisfaction.