Fulfillment Services Intermediate

Value-Added Services (VAS)

Also known as: VAS, Value Added Logistics, Additional Services

Definition

Value-added services (VAS) are specialized logistics operations that go beyond standard storage and shipping. These services transform, customize, or enhance products to meet specific customer or market requirements.

Common Value-Added Services

Assembly & Kitting

  • Combining products into sets
  • Bundle creation
  • Gift set assembly
  • Product configuration

Labeling & Marking

  • Price tagging
  • UPC/barcode application
  • Country-of-origin labels
  • Retailer-specific labels
  • Serial number application

Packaging

  • Custom packaging
  • Gift wrapping
  • Retail-ready packaging
  • Display building
  • Repackaging

Quality & Compliance

  • Quality inspection
  • Product testing
  • Compliance verification
  • Documentation preparation

Customization

  • Engraving/personalization
  • Light assembly
  • Software loading
  • Product configuration

VAS by Industry

Industry Typical VAS
Retail Price ticketing, security tags, hangers
Electronics Configuration, testing, serialization
Apparel Steaming, folding, display prep
Healthcare Lot tracking, temp monitoring, kitting
Automotive Sequencing, JIT delivery, sub-assembly

Benefits of VAS

  1. Delayed customization - Postpone final configuration
  2. Reduced lead times - Closer to customer
  3. Lower inventory - Generic stock, customize on demand
  4. Market flexibility - Adapt products per region
  5. Outsourced complexity - Focus on core business

VAS Pricing Models

  • Per-unit fees (per label, per kit)
  • Hourly labor rates
  • Project-based pricing
  • Included in per-order fees
  • Monthly minimums plus per-unit

Choosing a VAS Provider

Consider:

  • Relevant industry experience
  • Quality control processes
  • Technology capabilities
  • Scalability during peaks
  • Geographic location
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