Value-added services
What are value-added services?
Value-added services (VAS) are optional warehousing and third-party logistics (3PL) activities that supplement standard storage and order fulfillment. Popular VAS include assembly, kitting and packaging.
With these services, businesses can defer final product configuration until further down the supply chain. This minimizes fulfillment delays while still allowing for customization flexibility.
Common warehouse value-added services
Kitting
Warehouse kitting combines individual items into bundled packages. The warehouse management system (WMS) tracks component inventory while operators collect and package items together.
Assembly
Warehouse assembly involves combining parts into finished products. The WMS provides assembly instructions, tracks component depletion and generates completed product inventory.
Packaging
Warehouse packaging services offer customized product presentation. The WMS routes orders to designated stations where operators can apply gift wrapping, retail-ready packaging, branded boxes and promotional inserts.
3PL value-added services
Labeling and tagging
The 3PL WMS prints labels with unique product information and directs application depending on workflow requirements. As products flow through the warehouse, they can be properly identified and kept in line with compliance requirements.
Quality control support
Quality checks that manufacturers lack capacity to handle internally are carried out by the 3PL provider. This can include verifying product condition, testing electronic devices and carrying out final compliance checks.
Returns and refurbishments
Returned products are restored to saleable condition through cleaning, repackaging or refurbishment. The WMS routes returned items through inspection workflows, determines the solution and manages the restoration process.