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Added value services in Logistic

Added value services in Logistic. Driving forces and barriers for developing and providing value added services. “How to become a 3PL leader of added value services ?”. SUMMARY. Frame of reference Service management in logistic Make or buy 3PL Analysis 3PL positioning

december
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Added value services in Logistic

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  1. Added value services in Logistic Driving forces and barriers for developing and providing value added services

  2. “How to become a 3PL leader of added value services ?” SUMMARY Frame of reference Service management in logistic Make or buy 3PL Analysis 3PL positioning Value added in logistic Development of added value services Forces and barriers Conclusion

  3. Frame of reference

  4. Service management in logistic • Basic service package consists of core and supplementary services • Value-added services as services adding extra feature, form or function to the basic services Customization Low High Low High Differenciation

  5. Make or buy • Three reasons such as the lack of capability, scale and ability and lack of capacity to perform it within the organization Importance to the customers Low High Low High Uniquesness of offerings

  6. 3PL positioning Complexity Low High Low High Asset specificity

  7. Analysis

  8. EXAMPLES for 3PL’s Customer adaptation Low High Low High Problem solving general ability

  9. EXAMPLES for PRODUCERS Customer adaptation Low High Low High Problem solving general ability

  10. POSITIONING OF 3PL PROVIDER

  11. Value added services in 3PL • Basic logistics • Transportation • Network-based transport • Emergency transport • Transportation management • Warehousing • Storage • Order picking • Inventory management • IT-services • EDI • Tracking and tracing • Value-added logistics • Value-added services (physical handling) • customer-focused service • direct delivery • cross-docking • labeling • repacking • adding usage instructions • promotion-focused service • making point-of-sale displays • adding advertising material to the product package • shipping of promotion materials • Manufacturing-focused service • postponement • assembly • Time-focused service • just-in-time • sequenced just -in-time • Basic service • reverse logistics • aftersales service • spare parts • quality control • Administrative services • Purchasing of material • Order processing • Invoicing • Export/import operations • Consulting • Customer support • Telemarketing • Custom clearance • Certification (Tapa, AIO, ISO)

  12. Value added services in 3PL • The earlier the 3PL is participating in the supply chain, the most added value he can bring

  13. METHODOLOGY • How to become a 3PL leader of added value services solution ? • Define your strategy • Choose which king a actor you want to be and include VAS in your long term business plan • Make pro-activeness a value of your company : « Think » as important as « Do » • Prepare your team • Develop your expertize • Reinforce your client relationship • Lead a common team of technical experts, account manager and commercial team • Master the complexity • Develop your tools to handle customized solution as your standard, at a competitive cost • Treat your investment connected to added value services differently than your core business investments • Added value and profit are proportional

  14. DEVELOPMENT OF VAS : Innovation • Who takes initiative for developing value added services ? • How is development of value added services done ? Process/support team Key account manager Commercial team Company spirit Company strategy

  15. DRIVING FORCES & BARRIERS • What are the driving forces in the development and providing of value added services ? • Meet customer’s demand • Lock-in customer • Be more competitive and attractive to the customer • Warehouse is the suitable place in the supply chain to perform added value services • Task that nobody wants to do (customer, customer’s customer, specialist in providing particular service) • Changes in customer business and outer environment : Economical reasons can be a driving force for 3PL firms to provide value-added services (man hour cost, better possibility to plan work force, etc.)

  16. DRIVING FORCES & BARRIERS • What are the barriers in the development and providing of value added services ? • High costs are a common barrier for service development. Necessity of too big investments in providing value-added services, as well as requirements from customer’s side to extensively customize value-added service • Problems with establishing successful organizational learning • Lack of trust and communication derived from not enough close relationships between the 3PL provider and customers • Lack of proactiveness from the 3PL provider’s side • Lack of proactiveness can result from, for example, 3PL providers themselves being more oriented towards doing than thinking • Also depend on logistics seen as a less important development area from the customer company’s point of view.

  17. DRIVING FORCES & BARRIERS • What are the barriers in the development and providing of value added services ? • The difficulty for the 3PL provider to coordinate offering of so many different value-added services • Accept the probable necessity to work with external partners • The possible lack of expertise in the area of service which can result in service of low quality can be seen as a barrier in such extent that somebody needs to pay for the costs of acquiring necessary expertise to ensure quality.

  18. CONCLUSION • How to become a 3PL leader of added value services solution ? Strategy Team Tools Budget

  19. Results

  20. RESULTS • This strategy has been implemented in the core of FM Logistic and this where we are now :

  21. FM added value services plant • Sered – Bratislava plant in numbers VAS

  22. FM added value services plant • Basic logistics • Transportation • Network-based transport • Emergency transport • Transportation management • Warehousing • Storage • Order picking • Inventory management • IT-services • EDI • Tracking and tracing • Value-added logistics • Value-added services (physical handling) • customer-focused service • direct delivery • cross-docking • labeling • repacking • adding usage instructions • promotion-focused service • making point-of-sale displays • adding advertising material to the product package • shipping of promotion materials • Manufacturing-focused service • postponement • assembly • Time-focused service • just-in-time • sequenced just -in-time • Basic service • reverse logistics • aftersales service • spare parts • quality control • Administrative services • Purchasing of material • Order processing • Invoicing • Export/import operations • Consulting • Customer support • E_commerce • Custom clearance • Certification (Tapa, AIO, ISO)

  23. Contact details • Further questions, clarification, curiosity ? Jan Drzik Plant manager Email:jdrzik@fmlogistic.com Mobile: +421907784424 Brice Rouanet Solution Center manager CZ/SK Email:brouanet@fmlogistic.com Mobile: +421917550074

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