Supply chain management is a rapidly changing market, and today’s 3PLs need to adapt to keep up. 57 percent of companies believe that supply chain management gives them a competitive edge, and they’re right. Reducing supply chain costs by 5 percent has the potential to double profits. These value-added services make order fulfillment easier for their clients, reduce costs and increase visibility throughout the supply chain:
Logistics IT Solutions
Did you know that the #1 cause of supply chain disruptions in the U.S. is unexpected IT outages? Having a 3PL with these kinds of services can help your business keep its footing in the case of unexpected volatility. But not only that, logistics tech has the ability to more accurately predict consumer demand and facilitate just in time inventory management. Together, these will allow your business to minimize inventory risk while ensuring you always have stock on the shelves when customers are ready—essentially maximizing profitability.
Reverse Logistics and Inventory Tracking
A 3PL with asset recovery management is a good partner to have. Especially if they offer repair services for your products on-site. Some 3PLs even house extra sets of your packing materials so that damaged or return items can be refurbished and sent out looking brand new without a kink in your supply chain. A good 3PL can handle physical product returns and update inventory reports as items come and go. More than 40 percent of companies don’t track their inventory accurately, but those that do can minimize shrinkage that cuts into profits.
Quality Inspection Services
In the event of a quality issue, it is essential that your 3PL offers inspection services. Material can be inspected at JIT for various cosmetic, dimensional, and functional requirements to ensure they meet specific customer standards. When products are found to be non-conforming, they can be quarantined from regular inventory, and in some cases, repaired and reworked. Approved items are identified and placed back into shippable inventory to streamline the overall supply chain process. In some cases, a pre-delivery inspection program can be implemented to prevent non-conforming material from reaching the end customer.
If the manufacturer does not have local representation, JIT offers a contract quality representation service that can be deployed rapidly in response to quality issues that may be affecting the end customer’s production requirements. This service can keep quality issues from escalating by providing on-site inspection as well as detailed reporting to the manufacturer. This service allows the manufacturer to focus on customer service and creating new products.
Repacking and Kitting Services
Repacking, much like repair services, can be a great option if you have inventory that arrives in the warehouse with mangled packaging, but repacking services can open a whole new world of business opportunities as well. Many clients will use repacking services to place their products in branded packaging that creates opportunities for impressions at several stages of the logistics journey to a customer’s home. Similarly, kitting services can allow your team to offer new product configurations and allow for customer personalization without the need to manufacture a whole new product.
Industry-Specific Value-Added Services
Not all logistics businesses are the best fit for all companies. There may be some specialized logistics services that can give your business the competitive edge that not all 3PLs can have on hand. For example, the JIT Services automotive and electronics industry logistics teams offer component drying ovens and electrostatic discharge compliance to ensure safe packaging, refurbishment, and the longest shelf life for finicky electrical parts that require low-moisture environments. Providing these services significantly diminishes shrinkage for these highly volatile industries.
Value-added services are key for your business to stay competitive. They help save time and money while increasing end-to-end visibility and lead times. They minimize risk while maximizing profits. They build a better brand for your business, and they give you an edge over competitors. For more information about how logistics services can be a value-add to your business, contact the professionals at JIT Services.