Value-Added Services

Most companies start a 3PL relationship procuring basic services like transportation, warehousing and distribution. Taking things to the next level will often mean supplementing core services with value-added services.

Combining additional activities and processes to these basic logistics functions can streamline the supply chain, save on costs, boost customer service and enhance the bottom line. Outsourcing allows shippers to focus on their core competencies and to direct capital toward marketing, research and development. Many 3PLs pride themselves on offering their customers new and innovative ways to improve effectiveness in supply-chain management. They want their customers to view them as strategic partners, who are able to take an active role in helping them solve supply-chain management issues.

Different 3PLs offer capabilities in different areas and each company’s needs will be different as well. Many 3PLs tout services such as packaging, kitting, testing, repairing and refurbishing, recycling, tracking and tracing, cross-docking, and consulting. Some of these functions involve finishing the last steps in the manufacturing process to ready products for customers. Others tout cargo consolidation capabilities and advanced IT tools that provide real-time visibility to cargo and inventory and customs compliance analytics, among other things.

Signing up for more services allows 3PLs to offer their customers lower rates. Bundling activities in a single location also lowers the carbon footpint of a company’s logistics activities.