This article examines the importance of VAS for meeting ever-increasing brand standards, and how advanced 3PL warehouse management software unlocks VAS’ potential. We’ll look at some key challenges and benefits of leveraging advanced 3PL software to deploy your VAS offerings, then give some strategic steps to expand your VAS pipeline. Then, we’ll show how warehouse management systems (WMS) such as Logiwa IO help you pull it off.
Why VAS matters for 3PLs
Offering VAS is becoming a strategic necessity for 3PLs. With B2B brands expecting retail-like flexibility and ecommerce brands differentiating themselves by delivering unique unboxing experiences, 3PLs have become a key part in fostering a connection with the end-user. The right packaging or kitting services can create an experience that delights consumers and elevates their engagement, while the wrong services lead to packages that fail to deliver. VAS offerings are now central to order fulfillment, offering services like:
- Kitting
- Bundling
- Light assembly
- Product personalization
- Reverse logistics
- Compliance labeling
- Quality control
- Subscription box fulfillment
While these add-ons aren’t necessarily essential for all of a 3PL’s core functionalities, they’ve become a significant part of warehousing workflows — and they benefit both the customer and merchant. From a customer standpoint, strong VAS processes lead to faster delivery and more customized experiences. From a business standpoint, they lead to deeper customer loyalty, higher profitability, and new revenue possibilities without the added square footage.
A better product for the consumer and higher profits for the supplier — VAS is a win for both.
3PL software: Where would VAS be without it?
Effective VAS processes are critical for 3PLs looking to gain a competitive edge, but they won’t go far without the right tools. Manual or legacy systems lead to disorganization and limited functionalities, restricting the 3PL and the merchant. Having the wrong 3PL software for your VAS workflows can create many problems, such as:
- Disjointed workflows between picking, kitting, and shipping
- High error rates from manual tracking
- Packaging mistakes during assembly or customizations
- Inaccurate invoicing for value-added labor
- Poor visibility into inventory or order status
- Inefficient scaling across multiple clients or warehouses
Taken together, outdated 3PL warehouse management software not only opens the door to poor order accuracy and subpar warehousing processes, but hinders suppliers from offering the unboxing experience that consumers demand. This forces brands to look elsewhere for their order fulfillment, causing legacy 3PLs to miss out on future business.
How 3PL software helps optimize VAS
Just as the wrong 3PL software results in revenue leaks, the right 3PL warehouse management software can expand your VAS horizons and create new opportunities for you and your customers. Here’s how AI-driven 3PL software solves the problems caused by legacy systems — and turns VAS into a strategic differentiator.
Real-time inventory management
Modern 3PL software provides real-time inventory management, which is essential for optimizing warehousing processes. It improves order accuracy by giving you better visibility into your inventory by channel, client, and location, and lets you perform VAS tasks like customizations and light assembly with fewer errors and greater efficiency. The result is fewer stockouts and more accurate fulfillment of even the most complex orders — all of which drives your business growth.
Warehouse process automation
Some VAS duties like kitting or labeling are highly repetitive, time-consuming, and even dangerous. 3PL warehouse automation software like Logiwa helps human and robot workers streamline their processes to complete tasks more efficiently. AI-powered automation rules let you route warehousing tasks, reduce manual labor requirements, and maintain consistency from order to order. Such automation not only enhances your warehouse’s productivity and speeds up your throughput, it saves money by reducing the labor resources needed for your operations.
Customizable workflows and client portals
No two clients need the same VAS. Each one has their own kitting, assembly, labeling, packaging, and logistical requirements, so they need high-volume fulfillment solutions as unique as their products.
Logiwa’s WMS solution features configurable workflows and client-specific rules, letting 3PLs accommodate each client’s orders according to spec. Branded portals also create a white-labeled experience for each client, providing a flexible interface for easier use.
Advanced analytics and reporting
In business, the right data is the difference between a profit or loss. Logiwa WMS features an analytics platform with advanced 3PL analytics capabilities, empowering you with the actionable insights you need to make data-driven decisions. Our intuitive dashboard and reporting functionalities also let you monitor SKU performance, perform a cost-to-serve analysis, and conduct demand forecasting with greater accuracy. Making the most of your data means smarter decisions and higher profitability — and advanced analytics makes it possible.
Efficient returns management
Whether it’s unhappy customers or an incorrect product, returns management can be a top pain point for many clients. With the right 3PL software, it can become a revenue opportunity.
Logiwa’s WMS solution helps you manage inspection, disposition, and restocking in one workflow. This lets you recover lost revenue by reselling eligible products, and streamlines your reverse logistics processes for smoother returns. The result is improved customer satisfaction, and a faster resale cycle that delivers greater profitability.
Expanding VAS offerings with an advanced WMS
Having the right 3PL software in place is critical for expanding your VAS offerings, but it takes more than that to deliver premium fulfillment solutions to your customers. To get started on growing your VAS pipeline, take these steps:
- Conduct a client audit. What services are clients asking for that you don’t offer? A client audit can help identify which VAS benefits your clients would like the most, letting you expand your services more strategically.
- Identify repeatable services. Do your customers frequently request the same packaging or fulfillment offerings? These could be turned into standardized services, proving your expertise to prospective clients.
- Evaluate your current WMS. Can it handle multi-client rules, customization, and automation? WMS solutions provide the framework for completing warehousing tasks, so they should possess the features needed to orchestrate VAS workflows.
- Prepare your people and processes. Expanding your VAS offerings means opening up new lines of business, so your whole team must be prepared. Train employees on any new processes such as kitting or custom assembly, document all VAS workflows to minimize packaging errors, and implement automation to enhance efficiency and fulfillment accuracy.
- Adjust your pricing. Now that previous add-ons are standard and new services have been added, you can adjust your pricing to reflect your new functionalities. Use analytics to refine your pricing models and fulfillment performance, then remove any bottlenecks to improve your efficiency.
At the core of all these processes is a 3PL warehouse management software platform that supports your VAS strategy. Modern, scalable tools like Logiwa IO support VAS natively, letting you add new services as needed. The future of 3PL is always changing; a scalable WMS platform ensures that you can change with it.
Elevate your VAS offerings with Logiwa
In a world where logistics complexities are always evolving, customer standards are always increasing, and new competitors are always emerging, standing out from the crowd is a must. The right software can help 3PLs expand their VAS offerings, unlocking new functionalities that take them and their clients’ operations to new heights. The result is smarter decision-making, a more robust supply network, and streamlined warehousing processes that enhance productivity for all.
Logiwa is a leader in cloud-native fulfillment technology. Our AI-powered FMS solution, Logiwa IO, revolutionizes high-volume fulfillment for 3PL, B2B, and DTC brands. We help deliver better VAS services by converting complexity to opportunity as you scale your operations.
Offer new services, improve customer satisfaction, and strengthen your fulfillment network with VAS. Logiwa IO makes it easier to open new revenue streams that set you apart in the digital era.
Want to offer value-added services without adding complexity? Book a demo with Logiwa today.
FAQs about 3PL value added services (VAS)
What are value-added services (VAS) in 3PL logistics?
How does 3PL software enhance the delivery of value-added services?
Why is offering value-added services crucial for 3PL providers?
What are some common value-added services offered by 3PL companies?
- Kitting and bundling
- Custom packaging and labeling
- Light assembly and product customization
- Reverse logistics and returns management
- Subscription box fulfillment
- Quality control inspections
- Compliance labeling
These services help clients provide a unique unboxing experience and maintain brand consistency.
