Value-added logistics service is, based on the basic functions of logistics, to provide a variety of extended business activities according to customer needs.
In the increasingly competitive market environment, logistics enterprises are not only required to have more stringent service quality in the traditional transportation and warehousing services; but also required to significantly expand their logistics operations and provide as many value-added services as possible.
Advantages of value-added service
(1) Services increasing convenience
All services that can simplify procedures and operations are value-added services. Simplicity is relative to the consumer, not that the content of the service is simplified. It means that in order to obtain a certain service, what used to be done by consumers themselves is now done by logistics service providers in various ways on behalf of consumers. This makes it easier and more convenient for consumers to obtain such services, which of course increases the value of the goods or services. In the provision of logistics services, value-added services useful for customers include the implementation of one-stop door to door service, providing complete operation or operation tips, free training, maintenance, energy-saving design or installation, agency business, 24-hour business, automatic ordering, transfer information and accounts, logistics process tracking, etc.
(2) Services speeding up the response
Rapid response refers to the fact that logistics enterprises, facing the buyer’s market with multiple varieties and small batches, do not reserve “products”, but prepare various elements, which make them able to extract elements as quickly as possible and “assemble” them in time to provide required services or products when requested by customers. Rapid response has become one of the driving forces of logistics development. Traditional ideas and practices have changed the speed of response into a simple requirement for rapid transportation. While modern logistics view is that there are two ways to make the process faster. The first is to improve the efficiency of transport infrastructure and equipment, such as the construction of highways, railway speed increase, the development of new alternative management methods, the speed increase of the car itself, and so on, which is a guarantee of speed. But as demand for absolute speed on the demand side grows, it becomes a constraint. Therefore, it is necessary to find other ways to increase the speed. The second method is the value-added logistics service scheme with great promotion value. It is necessary to optimize the network of distribution centers and logistics centers and redesign the distribution channels suitable for customers, so as to reduce the logistics links, simplify the logistics process and improve the quick response ability of the logistics system.
(3) Services reducing costs
It is possible to find logistics solutions that can reduce logistics costs by providing value-added logistics services. Possible solutions include adopting TPL service provider; adopting logistics co-integration plan; as well as, adopting more applicable but less investment logistics technology and equipment, or by implementing logistics management technology like operational research management technology, single product management technology, bar code technology and information technology, so as to improve the efficiency and efficiency of logistics and reduce the cost of logistics by.