The paper "Value-Added Services in Logistics Operations" is a perfect example of management coursework. In the context of logistics operations, value-added services can be described as the unique services and products that shipping or warehousing companies can develop reciprocally, to improve their effectiveness or relevance in their specific markets of operations. In this case, when a firm commits itself to value-added services for its customers, it becomes caught up in customized logistics. Value-added services in logistics operations Warehouse and shipping companies must adopt customer-focused approaches into aspects of their operations if they have to achieve their objectives of consolidating and increasing their customer bases.
Within the logistical context, the businesses can supply exclusive product packages, offer unique information services, offer special shipping arrangements, create customized services or even place prices on their products (Peck 2006). Logistics operations involve the planning and organization of movements and storage of products from one point to the other. This means it is not limited to products alone but it comprises a combination of time, space and form. This means the definition of value-adding services in the context of logistics operations takes a rather wide scope, meaning value-added services in logistics business are varied and may include customer information service, distribution, demand forecasting, order processing, repackaging, security, product disposal, location analysis as well as warehousing and storage (Shapiro & Heskett 1985).
Overall, a number of the value-added services that businesses choose to engage integrated service providers that are well-positioned to offer the services. In this case, a few examples of how some Australian companies work within the supply chain to offer value-added services is critical (Christopher 2006). The field of logistics has been broadened beyond its conventional coverage of warehousing and transportation, to now include assembly, distribution, packaging, labeling, finance, customer service and even insurance.
These activities, which are often referred to as high end or low-end value-added logistics services are key sources of revenue generation for warehousing and shipping industry. It is also important to note that although these value-added services always take place at the warehouses or distribution centers, the factors that influence their location are not similar to determinants that guide the allocation of value-added logistics services (Ryan 1996). Examples in Australia Generally, warehouses or transportation carriers can actively get involved in the supply chain in a way that brings value-adding service a reality.
Warehouses can be appropriately engaged in performing a specific customized service. For example, a retail customer may want a customized palletization alternative for its cross-dock activities as well as ensure the distinctive product requirements of its store units are met. In this case, each store would need a varying amount of specific product so as to uphold in-stock performance with little inventory. For example, Geodis Wilson, an Australia-based logistics services provider, involved itself in assembling volumes from different origins and consolidating them into a single final delivery package to its retail customers.
On critical analysis, this ensures reduction of storage and transport cost as the configured products are consolidated into one single shipment. This also reduces inventory costs as it rationalizes the flow from the supplier to the consignee. In many business organizations, conventional practice is to stock inventory while anticipating customer orders. Normally, inventory stocking’ s basis lies on anticipated demand for products.
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